NEW DUTIES ON CARS

Hawera Star, Volume LIV, 22 September 1934, Page 7

NEW DUTIES ON CARS

APPREHENSION IN THE TRADE DIFFICULTIES OF ASSEMBLY The effect the new duties on cars will liave on the motor importing business is viewed with apprehension in som© sections of the trade. After December 31, 1934, there will be a difference of IU per cent, m bbtji the British preferential tariff and in the general tariff on complete ears ancl on cars that are. unassembled or completely knocked down. It is held that, except in flic case of firms which have special facilities, the saving in duty obtained by importing knocked down cars will not pay for the cost of assembling cars m New Zealand.

in ■ announcing the decision of the Government, the Minister for Customs, the lit. Hop. J. G. Ciiates, said the assembly of cars in'New Zealand would provide employment for a considerable number of workers.

Mr Ja Treleayen, " manager of a Christchurch firm of importers, told a reporter that although on the face of it this appeared an excellent, scheme, in practice it might not work out as the Minister hoped. He claimed, moreover, that it would impose an undue hardship on many importing firms. To provide facilities. for the assembly of cars would, he said, calf for a big capital outlay which the state of the trade dicl.not justify, and in any ease 'no one was at present prepared to invest money in the motor business. Ihe first problem to be faced by a firm wishing to assemble cars is the provision, of the necessary ground space. Mr Treleayen thought that few, if any, of the importing firms had sufficient floor space in their garages for this . work. The assembling of car bodies is a • work of great precision, and to ensure the: necessary degree of accuracy expensive plant is necessary. The parts have to be field in exactly the right .position‘ while the seanis are welded. Different types and sizes of bodies, of course, require different machinery, and on completion all the seanis have'to be filled, and the whole car painted. Tfie provision of the necessary equipment presented a major problem .for .the. firms, said Mr Treieaveh. .The term “finocked down” had not yet beep finally defined. The assembling of chassis also presented difficulties,' but these could be satisfactorily overcome. • It would be ap additional: burden on .the firms, however, if it was'held that engines also, had to be imported in pieces. . One solution that Mr Treleayen saw was. .the establishment of central assembling plants in Wellington. This, lie said, w.oqlcl have. to. be done by (the manufacturing firms, but; their New Zealand trade represented such a small proportion of their total production that fie doubted if they would consider it worth while to go to the expense of establishing ' assembling plants. If this were done' if would certainly relieve the upeniployi'nent situation ip Wellington, but'would make it worse in the other centres. - Mr Treleav'en also discussed- the possibility of some independent, -company establishing ap assembly .plant to-do the assembling for all the firms .in one centre*. He thought,, , however., . that this would not be possible. In - the first place tjie importation of cars was seasonal.' which would mean that the plant would be- idle at some periods of the year.- Then, during tfie importing season cars arrived in ship loads. This, would mean that when a boat came in all tfie firms, with prospective custolners waiting, ‘ would be anxious to have their own cars assembled first, and no plant would Be able to cope with the situation.