MOTOR TRADE

Evening Post, Volume CVII, Issue 96, 27 April 1929, Page 26

MOTOR TRADE

POSITION: IN DOMINION

A "TIMES" 'SUPPLEMENT

(From "The Post's" Representative:) LONDON, 14th March.

Two articles on: the New Zealand.motor trade ,we contributed by tho Wellington correspondent to tho very interesting and comprehensive British Motor Number issued as a supplement to'"The Times" of 12th March.

The writer states that the improvement iii the motor trade has not equalled expectations. 'The chief reason, he says, /is' a general one, applying to mosf sections of imports. < Prodvice export values have - assured ■ the Uominion a good trade credit balance, but the recovery in spending power, has lagged behind. Now, however, there are sure, signs of a loosening of purse strings, and motor traders are hopeful of better business. A special explanation of the slowness of the motor trade recovery is that motor-omnibus transport has been checked by the legislative protection given-to established municipal tramways.. When this protection was "given, it was thought that" the municipalities, would .themselves develop rbutesV.with' .motor .-trans'port-r-merely using their authority-to prevent wasteful duplication of services. But the Corporations, have in several instances been more inclined to stand fast on their power to coinpjel their patrons to use the tramcars. There is, however, hope of a changed attitude The demand for .full. use. of: the motor vehiclo is becoming more:insistent :and' must result in the extension of so^vices.

■ "A special difficulty encountered by English makers .at present (says the correspondent) arises from the fact that our British preferential duties apply to the whole of;'th"e Empire, and cats containing not less than 50 per cent, of Canadian labour and/or material can be imported'at the preferential rate. One such car,, assembled locally, is proving highly, popular.' ; New Zealand does not wish to differentiate between Canada aid other parts, of .the Empire. "Users appreciate tKe efficiency of the English light truck', but many of these users are men of \ small means to whom first cost is everything. In the heavy truck trade Great Britain is holding her own, though she suffers more than her competitors by the heavy vehicles tax and classification. Tli'ero is a prospect of relief in this respect at an early date. In anticipation of a greater demand for omnibus chassis, an effort is being mado to secure an amendment of the regulations which do not meet the English; design in regard to brakes and .passenger, lay-out." , QUESTION'S OF TRANSPORT. In another^ article the xorrespondent considers the question 'of transport in the Dominion. He explains the main highways system under which main roads are either directly constructed and maintained by the Highways Board, or subsidised by that board with funds obtained from vehicle taxes and State grants. "The over-supply of commercial vehicles (says the correspondent) I -..a certainly 1 been injurious to the motor trade. Threatened by uneconomic competition, the municipal transport enterprises have, obtained protection, which enables them to bar motor transport, which is progressive and sound, as well as that which is duplicative and wasteful. Further, the inroads of roac costs upon, rates havo led to tax measures which are .oppressive to motor transporters who. are meeting a genuine public demand for up-to-date service." , , ' . _ The correspondent explains the taxation anomalies and concludes: —-'■■',' "Mr. Coates, proposed to convene a conference of local authorities, motor interests, and Government representatives to consider a new arrangement. Ine responsibility now devolves upon Sir Joseph Ward. ' Ho has stated definitely that he regards the heavy vehicle tax as unfair, and he has proposed a Commission of Inquiry to consider the whole question of motor transport and the establishment of a' Motor Transport Board to comprise representatives of the; Government, motor trade, motor vehicle owners, and local bodies operating motor fleets, either f or' goods or passenger transport. These steps should produce a reasonable measure of co-ordination. , One of the first steps must be.to place road construction and maintenance charges.upon an equitable from further restrictive legislation basis. Unless relief is given to the ratepayer by re-allocation of the rovenue according; to. ascertained cost, legitimate enterprise is in danger of suffering (as it has suffered in the pas t) and taxation directed against the dunlicative services." . ■