MOTOR INDUSTRY

Greymouth Evening Star, 1 February 1926, Page 6

MOTOR INDUSTRY

N.Z. BODY-BUILDERS’ PROTEST.

(Per Press Association.)

WELLINGTON, January 30.

The motor trade has taken alarm at the announcement that General Motors Ltd. is about to establish large works at Petone to carry on assembly work, and a deputation representing the body-builders of N.Z. waited on Mr. Coates and Mr. Stewart to-day. They put forward the following suggestions. Unassembled bodies to be assessed as motor bodies; strict enforcement of preferential rates and conditions; stipulation that every three completed cars or bodies (assembled or unassembled) shall be accompanied by one chassis; necessity for the enforcement of legislation passed for the suppression of trusts and combines in the interests of secondary industries; protection of the legitimate British manufacturer against the use now being made of Canada by American importers to defeat the British preference.

After the speakers had begun their argument, pointing out amongst other things, that the capital of the Company was only £50,000, but they proposed to spend double that at Petone and where did the remainder of the money come from. Mr. Coates asked if the object of the deputation was to protest against the Company starting in N.Z.

The reply was no, but they were asking for protection for the industry. It was alleged that the Company intended to establish factories first over the Canadian border, which would illegitimately get the advantage of the preference allowed to British manufacturers. The development of this Company would be prejudicial to British manufacturer and the combine was not coming here for the benefit of local industry, but to stifle it. This factory was’intended to evade the Customs duties, and was not going to give employment to young men. It would flood the market with the product of unskilled labour.

In reply, Mr. Downie Stewart said that others had also claimed the right to be heard before the final decision was arrived at. The deputation appeared to be afraid of. bringing in unassembled parts, and that by some means the Customs would be sidestepped. He had gone into the matter with his officers and they had perfectly clear ideas both as to the rate of duty and assessment. If it could be shown the method of charging was wrong, he would be quite willing to consider it'. The Department was fully alive to the importance of charging duty on a proper 4)asis. The deputation had made no reference to how the difficulty re preference' could be overcome. He suggested that this point should be discussed with the officers of the Customs. He thought the deputation was striving for a higher duty, but that opened a different question. “We have not yet adopted the policy of protection by prohibition.”

i Mr. Coates said that he did not wish to add much to what Mr. Stewart had said. He was pleased to meet the deputation, and he wanted to know what their troubles were. The Government had to see that the user got his vehicle at as cheap a price as possible. He asked the deputation if they could supply particulars as to the different kinds of motor car, country of origin etc.?

Mr. Harvey replied that such information would be supplied.

• The Prime Minister said he did not think that there was anything further to discuss at the moment. The Government would have to look very carefully into the representations made. Mr. Downie Stewart was going to see the other parties and the best course to take was ‘to defer giving a reply until the Government heard from all.