Car prices will not be lowered, Minister says

Press, 9 May 1984, Page 33

Car prices will not be lowered, Minister says

The Minister of Trade and Industry, Mr Templeton, has emphasised that car prices will not be lowered to consumers in the short term. The Minister said this yesterday when commenting about speculation on the future of the motor-vehicle industry. The Government had taken a wide range of decisions on the motor-vehicle industry development plan presented to it by the Industries Development Commission, the Minister said. “Further decisions remain

to be made, some of which depend on consultations with other countries under certain international commitments and on consideration of the Government revenue implications of the development plan. The various parts of the plan are, however, inter-related and so it is not practicable, nor would it be wise, to release the decisions in a piecemeal fashion.” The Minister said he would release the Government’s “package of decisions” as soon as this was possible.

“The consultations with those countries such as Australia, with whom we have certain trade obligations, will be conducted as a matter of urgency. The Government revenue aspects will also be determined as quickly as possible. “In the meantime, I must emphasise that the over-all effect will not be a lowering of motor-car prices to consumers in the short term. The total Government revenue derived from the importation and sale of motor-vehicles in New Zea-

land, assembled here, and imported completely built up, will be maintained.” The Government remained committed to establishing a development plan which would retain the motor-vehicle assembly and automotive component manufacturing industries, lead to improved efficiency, and ensure that future investment constituted an efficient use of resources from the national viewpoint, taking into account overseas developments in the motorvehicle industry, Mr Templeton said.