MOTOR ASSEMBLING

Evening Post, Volume CXVIII, Issue 50, 28 August 1934, Page 8

MOTOR ASSEMBLING

(To the Editor.)

(Sir, —I am somewhat surprised that the voice of the motor trade generally has not been heard in connection with the proposed Customs duties on motor vehicles, as the new rates would appear to bo to the advantage only of big linns with assembling plants. The Tariff Commission considered that the assembling industry did not require tariff protection, it having been shown that the reduced freight on unassembled parts gave the local assembling industry sufficient ad-, vantage. Big firms can assemble their cars at central- depots and distribute them to various parts of New Zealand. But wlia^t is to become of the small provincial importer whoso volume of business docs not warrant hiii) establishing mi assembling plant? Is ho to bo crushed out of existence' It is very doubtful whether any ono of the several English (inns, whose cars :ne sold in this country, could \>r induced 1u establish :in assembling planl lien: ami control dis-lribul ion Ilinuighout t lie

country. With the exception of one firm importations are made direct to separate chief agents in the main centres. In one or two instances it might; bo possible for tho individual, importers to form a combined assembling depot, but for the majority of tho small traders tho cost of assembling equipment and establishment charges would bo too great even if they did combine. Therefore, it would seem that tho new duties mean that after December 31 next the motor business in New Zealand is going to bo confined to a few makes of cars, as a 10 per cent, preference to those importers who assemble here will cripple importers unable to qualify for this preference. It may bo thought that the proposal of tho Government to confer with the trado upon what shall constitute a completely knockeddo»vn state will save tho small importer, but the fact of thcro being, at least two complete assembling plants already firmly established will prejudice the possibility of any half-way agreement.

If tariff protection wero necessary to enable present assembling plants to remain in operation, there might be some justification for a small protective duty, but I believe the Tariff Commission went very thoroughly into this matter, and it would be interesting to know the reasons in this instance for departing from tho Commission's recommendations. It seems that the saving in freight is ample encouragement to the industry, and this fact is borne out by the action of firms in establishing and maintaining plants without any tariff concessions. Apart from the fact that the Government will lose a great deal of revenue if the new proposed duties are adhered to the small importer of English cars, will bo forced out of business and new eav sales placed in tho hands of the principal motor importers. Kven though ir, lie at the eleventh hour I appeal to the Government and to tho Minister of Customs to consider the claims of the small importers, many of whom have been doing their utmost to promote tho sale of British ears, and this in the face of heavy competition. If the rates of X) pur tent, and 53 per cent, were- allowed to continue on all motor vehicles and not restricted to December 31 next I feel suro the motor trado generally would bo well satisfied.—l am, etc.,

SQUARE DEAL.