MOTOR CAR DUTIES

Grey River Argus, 22 August 1934, Page 6

MOTOR CAR DUTIES

Object in View assembly in N.z. WELLINGTON, Augusi 21. Mr Coates said regarding the motor tariff: — 4 ‘ When I previously dealt with mat*s as to the duties on motor veilodos, I referred to the question '-f the assembly of cars. The Now Zealand Government feels that if there Ls anv possibility of a satisfactory secondary industry arising jn the Dominion in connection with motor cars L. will be along the lines of assembling cars imported in a knockedoowii condition. At the same time, ‘•his will enable New Zealand labour and material to be utilised. To slio-a •he extent to which such an industry is possibly capable of expansion, F might mention that of the registrations of motor cars during the last si ven months, about 80 per cent, were those of eight manufacturers abroad. 1 am g’ad to be able to state that, generally speaking, and subject to certain details which require to be gone jnto, English manufactr.rers a.e Vrepared to ship unassembled cars to New Zealand for completion here. If ‘hi« cgu be achieved, it will afford employjnent to a considerable number of workers directly in the completion of vehicles, and indirectly in th? nti/isatioD of local materials.’Further information obtained bv the Government indicates that the concession already made on unassembled cars is not sufficient to encourage manufacturers abroad to have their vehicles assembled in New Zealand. Therefore it has been decided ultimately to fix the duty on completed and unassembled vehicles at the following rates until January Ist next, and Unit la Hie meantime duties will be ns under; On complete cars up to 31st December. 1934, British preferential tariff 10 per cent., general tariff 55 per cent; thereafter 15 per cent, and 60 per eent..; on unassembled or completely knocked-do'wn cars v.p to 31st December, 1931. 10 per cent., and 55 per cent.; thereafter 55 per cent, and 50 per cent.; complete vehicle, British tariff 15 per cent., general tariff 60 per cent.; and on unassembled ones 5 per cent, and 50 per cent.

“The Government recognises Eng--1 sh manufacturers will not. generally be able, for some little time, to take advantage of the concessions proposed, and it is intended that the new rates shall not meantime come into ■force. This moans that for a few months, the rates of duty on complete and unassembled cars will be the same, hut. that thereafter there shall be a difference of 10 per cent, ad valorem between the two. From information supplied to the Government it .*s believed four, months is sufficient to enable the assembly of cars to be undertaken in New Zealand. “Another modification proposed is that the concession at present restricted to unassembled cars should be applicable .also to trucks and chassis. This action will have the effect of reducing transport costs, and nt the same time will facilitate administration. It is proposed, when the principle of admitting unassembled ears at reduced rates is confirmed by Parliament, to consult the trade with

u view to arriving at a satis!actory definition of what, is to be understood : an unassembled or completeiyk nocked-down vehicle. 1 recognise hat, in the initial stages, it Will not !>e advisable as a condition of admission at the lower rate* to insist

upon the maximum amount of assemble work that could possibly be oerfoi’med- here. The policy sli-ju’d ■ather be to insist at the commencement upon a minimum c-f work which must be carried on in the Dominion, and bv degrees to modify the detii.:lion of unassembled or comple'.ely-i-noeked-down cars, so that an increasing amount of local labour ami materials may be utilised in New Zealand. F feel sure the Govern mein can rely upon the assistance and cooperation of all those interested L> further this poicy. which must be for the benefit of the community.'’