MOTOR BODIES

Evening Post, Volume CXVIII, Issue 20, 24 July 1934, Page 11

MOTOR BODIES

OBJECTIONS TO TARIFF

FEARS FOR INDUSTRY

Bequests for alterations in the new tariff schedule were: made by the New Zealand Coach and Motor Body Builders'; Federation to the Minister of Customs (the Et. Hon. J. G. Coates) today. The deputation was introduced by Mr. W. Nash, M.P., who had-associated with him Messrs. C, 11. Chapman and H. G. Dickie, M.P.s. The secretary of the federation (Mr. W. J. Mountjoy) said that the possibility of New Zealand manufacturers competing with mass pioduetion in overseas factories had been entirely removed by tho abolition of the body duty of ll\ per cent, on English mauufacturo and 16} per cent, on foreignmanufacture. The increase of duty on chassis, which was in fact the body builder's raw material to which ho had to add Ids product, was a further hurdle which' was impossible to surmount. The increase of 5 per cent, on English and 20 per cent, on American chassis on top of the abolition of body duties meant a setback both ways—tho abolition of duties on product and the increased duty on raw material (chassis). While it might be conceded that the body duty had not had tho effect of having inore~bodies produced locally, no good purpose -could be served by increasing the duty'on unassembled chassis and totally, exterminating, the bodybuilding industiy. The lower rate of duty on-completely knocked-down mo-tor-cars -had much to recommend it, providing the difference in rates of duty between completely knocked-down cars and complete built-up cars had been sufficient to induce motor importers to adopt the completely knockeddown method of importation. They did riot for.one.moment believe that it had ever been intended by the Government'that the bare'chassis should bo subject to a higher duty than a completely knocked-down car, van, or lorry. They, therefore, suggested that the duties, should be: —(1) Completely knocked-down motor-cars .' and completely knocked-down chassis, English 23 per cent, or as an alternative, 7-1 per cent.; foreign 33 1-3 per cent. " (2) Other kinds of completely-built cars or chassis, English 15 per cent., or as an alternative, 20 per cent.; foreign 60 per cent. l -, NOT SUFFICIENT INDUCEMENT.' "It'is claimed that the difference in the British rates betweeii ,the completely knocked-down vehicle and the builtup car is .not sufficient to induce the motor importers to adopt the completely knocked-down method of importation," said Mr. Mountjoy. "We believe also that| the diffeicnce between the gonelal tariff lates for the. -completely knockcd-doim class and the other kinds is insufficient: the difference between .a completely knocked-down car and a finished car is only 7} per cent, of 60 per cent. For instance, a completed foreign car with an invoice value of £.200 can be landed for, £120 duty, ' whereas the saving in duty 'jn knocking it down amounts to only £15. It must not bo overlooked that the'cost of completion in the mass puoduction factory of its origin would be loss than it will be in New Zealand! Thus there is no- inducement for importers to import .completely knocked-down cars. "It. is not believed that' it is the wish of, the Government to eliminate tho New Zealand motor-body building or assembling industry, but we deshe to point out., that if 'tho taiiff rales romain as set/out in the new. schedule, it will have that effect. \ Many hundreds of workmen -would; as a .result, be thrown out of woik and the number of unemployed considerably increased. We believe that you . will agree that our lequcsts are not for radical c-lmngcs in the tariff already consideit-d hy the Government, but that tho requests wo arc making are reasonable because they give that measure of consideration desired by the Government in keeping faith with the decision reached at the Ottawa Conference, v We further submit that it was never intended that the decision reached •at the Ottawa Conference' should be interpreted in such a man.ner as would1 do greater harm to tho people,in one part of the British Empire than good to those for whom consideration was intended to be given." Mr. Coates said that the Government desired that- New Zealand labour and Now Zealand material should bo used as far as possible. Mr. Chapman said thaf the workers in. the industry supported the employers in their repiesentntions, and even wished to go further in that they advocated that for every 100 chassis coming into New Zealand 23 should be imported without bodies. Mr. Coates said that he would investigato the representations which had been made.