Vehicle trade deal with Aust, proposed

Press, Volume CXVI, Issue 34129, 15 April 1976, Page 15

Vehicle trade deal with Aust, proposed

(New Zealand Press Association) WELLINGTON. A cars-for-trucks deal will be diseussed at the next round of trade talks with Australia, after Easter. The Minister of Trade and Industry (Mr Adams-Schneider) proposes the export of cars in return for trucks.

He told members of the Porirua branch of the Wellington Chamber of Commerce I hat Australia's new policy of 85 per cent local content in Australian-made cars

angered well for New Zealand. “With our highly efficient ' component industry, we will '! expect, through the New ! Zealand-Australia Free Trade :! Agreement to play a substan-

tial part in this new Australian initiative,” he said. He said he would discuss both points with the Australian Deputy Prime Minister (Mi- Anthony) and the Minister of Industry and Commerce (Senator Cotton) next week. Mr Adams-Schneider said he thought the recent miniBudget would have little effect on car sales and that the industry could expect further restrictions to cut demand. He said the motor industry and its ancillary companies made up nearly a quarter of New Zealand’s import bill. The Government emphasis was on importing completely-knocked-down cars for assembly in New Zealand.

Mr Adams Schneider said the effect of the import licensing schedule for 1976 would be to cut the import of completely-built-up cars by 30 per cent. New assembly plants would not be permitted while there was surplus car capacity in existing plants, he said. Contract assembly was being encouraged to use excess capacity. “I would like to see this in other industries as well, where possible,” Mr AdamsSchneider said. Import licences for replacing plant and machinery would not be readily available this year, he said. In reply to a question on : further export incentives Mr j Adams-Schneider said any such moves would come in I the Budget. I “We have got to the end of [the line in many areas,” he said. Smail businesses would have to wait until next year for help from the Government’s proposed agency. Consultations with existing organisations would continue and legislation would be passed later this year, Mr Adams-Schneider said.