MOTOR BODY INDUSTRY

Evening Star, Issue 21093, 4 May 1932, Page 14

MOTOR BODY INDUSTRY

TREATY PROTECTS HEW ZEALAND MINISTER CORRECTS MISAPPREHENSION [Fhom Our Parliamentary Reporter.] WELLINGTON. May 3. The contention that the criticism by the Christchurch motor body builders of the new trade agreement with Canada was based ona misapprelvension was advanced by the lion. W. D Stewart in the House to-day when moving the second reading of tne Bill, which ratifies the treaty negotiated between the two dominions. Mr Stewart stated that since the Bill was introduced he bad received a large number of letters in connection with the treaty, but only one objection had been raised, and that one was without foundation. Manufacturers and others from Auckland to Dunedin had declared that the agreement was entirely satisfactory to them, and had commented that the new arrangement would enable them to develop in a way that had not been possible previously. Mr Langstone: They are very easily satisfied, then. The Minister: “They have confidence in the negotiations of the treaty.” The only objection, he added, came from the motor body ouilders in Christchurch, who declared that, in relation to the preference accorded Canadian motor cars, the Government had been hoodwinked in making the agreement, and that the motor body building industry would suffer seriously in consequence. So far from that being the case, the Minister added, the British motor car manufacturers were entirely satisfiedindeed, they stated that nothing could be more satisfactory to them. When he was at Honolulu bo had received a cablegram from the_ British Car Manufacturers’ Association asking, if possible, that Canadian cars should bo required to contain 75 per cent, oi Canadian labour or material to qualify for the preferential tariff. Not only was that provision made, but it was also provided that if Canadian cars did not contain the stipulated proportion they must pay the extra 10 per cent, of duty. As New Zealand motor body builders relied upon the importation of British cars for their opportunities, it followed that if the British manufacturers were satisfied, then New Zealand motor body builders were under a misapprehension in thinking that they were going to suffer. It had also been stated by British manufacturers that, under the terms of the agreement their export possibilities would be increased. with a resultant absorption of an additional number of employees. The objections raised by the Christchurch motor body builders were clearly based on a misapprehension.