Plan to ‘revitalise’ car industry

Press, 2 December 1981, Page 2

Plan to ‘revitalise’ car industry

PA Wellington The Ford Motor Company of New Zealand has submitted to the Industrial Development Commission what it considers a workable plan to revitalise New Zealand’s automotive industry. The plan includes an elimination of price control, hire-purchase regulations, price depreciation allowances, and relief from the burden of sales tax. Ford’s submission followed up cross-examination of the Motor Vehicle Manufacturer’s Association yesterday, the second day of the commission’s eight-day hearing to prepare a recommendation to Government on the future of the motor vehicle industry. The president of the M.V.M.A., Mr Denford McDonald, was cross-exa-mined about whether the industry could be made more efficient by component parts being standardised. A Commission member, Mr Harry Martin, suggested that parts such as seating could be standardised to gain efficiency by mass-produc-tion. . Ford's submission contended that a reduced costbase would encourage greater productive investment. It requested the commission to maintain present

tariff rates and continue to restrict the issuing of completely built up licences. It said the Government should encourage the export of components to Australia under the Closer Economic Relations proposals. Like the M.V.M.A., Ford wanted a rationalisation of unions and .awards within the industry. It wanted to eliminate present controls on hire-pur-chase leasing and pricing depreciation allowances; it wanted relaxation »of the 150 km limit on road transport haulage; and of the volumes restrictions on inter-island vehicle shipments.

It called for relief from sales tax levies on the pur-' chase of. productive plant and equipment, and for ex-; port incentives to continue on a long-term basis. The submission was on Monday criticised by the advocate for the 10 members of i the Manufacturers’ Federa-' tion represented at the hear-1 ing, Mr Wayne Coffey. He said submissions made, by other sectors were more; constructive. Ford and Gen-1 eral Motors would prefer to; cease making cars in New i Zealand, Mr Coffey said, and their proposals were only ensuring that the costs of their withdrawal were minimised. ,