RESTRICTIONS CAUSE CONCERN

Dominion, Volume 29, Issue 252, 21 July 1936, Page 10

RESTRICTIONS CAUSE CONCERN

Australian Motor Imports

UNCERTAINTY CAUSED BY NEW TARIFF f Dominion Special Service Auckland, July 20. The restriction placed on imports of motor-cars from America as a result of the Australian Government’s recent tariff legislation is causing some concern to firms in the motor business, according to Mr. W. B. Larke, chairman of directors of two distributing companies, who arrived from Sydney by the Niagara on his way to Canada and the United States to study the effects of the new legislation. Mr. Larke said that at present most firms were dn a satisfactory position for 12 months, as the tariff restricted the import of more vehicles than the number imported last year, but it was not known what was going to happen in the future.

As far as the General Motors and Ford Companies were concerned the problem was one for the manufacturers to deal with, but the question of distribution concerned other companies. The position was fairly satisfactory in regard to the imports of British cars. '

“The thing that is worrying us most, however, is what is going to happen as a result of the Government’s idea of forcing the manufacture of engines and chassis in Australia,” said Mr. Larke. "Tlie body-building business is already firmly established, but this is quite a revolutionary proposal. We are all left iu doubt as the matter is entirely in the Government’s hands, and some firms are rather alarmed. General Motors and Ford have investments in Australia on such a huge scale that they are bound to carry ou, but they do not welcome the idea of manufacturing engines.”

Mr. Larke added that there was no indication of any British manufacturer opening factories in Australia for the manufacture of engines and chassis, as there was too much concentration on armaments.