Row erupts at parts hearing

Press, 25 May 1977, Page 28

Row erupts at parts hearing

NZPA Melbourne Several of the world’s biggest car makers have withdrawn evidence from the Prices Justification Tribunal spare parts inquiry.

General Motors Holden, Chrysler, Leyland, Lucas, and Bosch followed the lead of the Ford Motor Company and withdrew their confidential submissions from the motor vehicle spare parts inquiry.

The Australian Automobile Association’s counsel (Mr Julian Zahara) told the hearing that the companies’ action was “nothing more than blackmail and a contempt of this tribunal and the Minister for Consumer Affairs who directly caused this inquiry.” The confidential submissions are heard in closed hearings separate to the public sittings. Ford withdrew their confidential evidence before the company’s finance director (Mr John Sagovac) and the parts and accessories general manager (Mr William Corbett) took the witness stand last week.

The company has been asked in the public hearing for its gross mark-up, cost of sales and general sales “in respect of spare parts.” Mr Sagovac has said that the company regards that information as confidential as it would give a dangerous advantage to Ford’s competitors.

He said that the evidence will be given when “we get the assurance of confidentiality.” Mr Zahara said, “It is crystal clear that the companies are saying that if the P.J.T. decides it would be in the public interest to make some information about a company’s activities public the companies won’t give this information.”

He appealed to the tribunal to “stand firm against the bullying tactics” for the sake of Australian motorists. The tribunal has the choice, under section 26 of the Prices Justification Act, of asking directly for information. If a witness does not comply there is provision for a sAustlOoo fine or three months imprisonment.

The inquiry is regarded as very important because it involves multi-national companies and an ordered investigation of business and consumer affairs.

The head of the inquiry (Mr J. K. Lawrence) adjourned the hearing of Ford’s evidence “to a date to be fixed so we can consider the nature and extent of any further information to be considered in public session.” The inquiry was adjourned until Wednesday when the A.A.A. has been asked to present its submission.