VEHICLE SHORTAGE

Greymouth Evening Star, 1 August 1946, Page 3

VEHICLE SHORTAGE

SERIOUS EFFECT OF DOLLAR ADJUSTMENT call to government . the, New. Zealand Motor Vehicle importers’ Association, in a statement issued to-day, ..states that New Zealarid. faces,,an .acute vehicle shortage because the import licences for 1947' allow for-the importation of a relatively . small, quantity of new motorcars and.trucks during that year. the number of vehicles it would be possible to import under these 1946 licences was previously estimated at barely 50 per,cent of the cars and trucks . imported in pre-war years. Since that estimate was made the number, of vehicles it is possible to import has suffered adversely because of two important factors —the Canadian dollar adjustment, and still further increased costs.

The adjustment of the Canadian dollar to parity with the United States dollar means that more New Zealand pounds are needed to pay for each Canadian, vehicle, and consequently that fewer cars and trucks may be imported under Canadian import licences. Similarly, increased costs recently announced by United Kingdom manufacturers to local importers will effect a further reduction in the number of units imported under existing licences from that source. Over 50 per cent of all vehicles on the roads to-day are over 10 years old, one in every four is over 15 years old, many are 1926 and 1927 models. Such improvisation, however, cannot be continued indefinitely,, and in the near future large numbers of these vehicles, already .well past their normal economic life, must become casualties. Unless substantial relief can be afforded by way of improved licence allocations, it appears that the average New Zealand motorist must continue to face these high costs of maintenance of old vehicles. Increased vehicle imports would also help to relieve the difficult tyre position which is a serious embarrassment to all users of motor transport.

Used car prices should now be dropping to bring them within reach of the average motorist but because of the enforced scarcity they are still spiralling upward. This trend in used car prices is unlikely to be reversed until the Government issues bigger import licences for new vehicles. Now that the United States loan- to Great Britain is approved, more dollars should become available for the purchase of further cars and trucks which would help materially to improve the present outlook for private and comcommercial owners.

■ The Government, therefore, should take immediate action to increase the import licence allocation for motor vehicles from all sources as the quantities of new motor vehicles that can be imported under the import licences granted for 1946 and 1947 are totally inadequate to meet the demand.