New Duties on Motors

Hawke's Bay Tribune, Volume XVI, Issue 221, 4 September 1926, Page 5

New Duties on Motors

Proposed Increases CUSTOMS AMENDMENT BILL. PASSED BY LOWER HOUSE. (Per Press Association.) Wellington, September 3. The Hon. W. Downie Stewart moved the second reading of the Customs Amendment Bill. He said so far as motor-cars were concerned the effect of the duties would be that cheaper cars, which comprise 37 per cent, of importations, '.would pay less duty than under the old dunes. it liac been said the new duues would detn mentally atlect British cars, but he had been told only that day that impoi tci a xLAuei'xcaii caiß were louking for British agencies, it had also uteii said mat. Americans would simply bring Uieir assembly works New Zealand, and so evade the duties, but it this were done it would mean that a considerable amount ot labour would have to be employed, and that would be good. He had also been told that Bnusn firms wouiu, to save freight, bring their parts to .sew Zealand, assemble them here, And have the bodies made by New Zealand body builders, which would be all to the good so tar as labour was concerned. that, at least, baa been the experience in Australia. It uad been said tlie new duties would result in an increase of revenue to the extent of £400,000 per annum. That was pure speculation, because no one could say what the revenue would be. At all events, the new duties were not being proposed for revenue purposes, but tor the purpose of benefiting importers and users of British motor-cars ,as wel las local body builders. ENCOURAGING DEVELOPMENT.

Mr D. G. Sullivan said there was m> doubt the local motor business was being hard hit by motor importations. He favoured a policy which would increase our technical de.-

meut, and if we could encourage the building of motor-cars in New Zealad we should do so. Sir Joseph Ward said American ears were more suitable to New Zealand requirements than Britisu cars. The British makers did not study colonial needs. Hie eirecl ol tnese new duties would be to raise the price of every car imported into New Zealand. He thought the Minister had made a mistake m bringing down the new duties without first having a thorough investigation made. There would be £I,9bV,OUO worth ot cars coining into New Zealand under contracts during the next twelve months and he wanted to know’ what was going to happen to those people who made the contracts. They could not carry on business. Mr J. R. Hamilton (Awarau) favoured any duties which would assist u.n-am against America. Britain took our meat and butter, and it was our duty to help Britain. BRITAIN WAKING UP.

Mr G. W. Forbes said the sentiment of the people of New Zealand, was in favour of assisting British manufacturers as tar as possible, and preterenttal duties had been arranged with this object in view, Keterrnig to motor-cars, Mr Forbes said it was undoubted that the British car, owing to its lower horse-power, was not so suitable to colonial requirements as me American car. lie uuderstoon, however, that British manufacturers were waking up to the situation and were inclined to meet the needs of the colonial car users. in tile past too much money for cars had been going to America, which took a very small amount of our products. We should buy from the country that was our greatest customer. The Hon. D. Buddo said he had hoped the whole question of Customs duties would have been referred to a Parliamentary committee for review.

sir John Luke thought all possible ought to be done to encourage and develop local secondary industries. EFFECT ON SAWMILLING. Mr W. R. Smith said the tariff assistance on timber in the bill did not help the sawmilling industry very much. New Zealand, in the matter of timber, should shut out some of the foreign timber and protect local mills, on which a number of small backlblock townships depended. Mr H. Holland (Christchurch North) w-elconied the bill as affording a large measure of help to a growing New Zealand industry. Mr E. A. Ransom thought encouragement should be given to those secondary industries using raw material of our own production. He mentioned the Onakaka ironmills as an industry specially deserving of support.. A tax on tyres was not the best method of collecting revenue, which could be much more equitably met by imposing a tax on motor spirit. Mr H, G. Dickie said he would like to be able ot think the increased tariff on foreign cars would result in increased imports from Britain, but he was afraid the result would really be more importations from Canada, where the factories were practically financed by United States capital, ENCOURAGE BRITISH MAKERS. The Hon. A. D. McLeod. Minister of Industries, said tariff revision must be considered carefully from the viewpoint of all sections of the people. The time had come and the opportunity was here for the encouragement of the British ear maker. We were buying far too many from a country that took practically nothing from us. Mr H. Ji Holland suggested that the whole situation ought to be reviewed before next session, so that while protecting local industries at the same time people would be protected against exploitation through monopoly prices. We should lift the duties altogether on such articles as cannot be produced in New Zealand. Mr Holland considered it wrong that the prices of New Zealand products, such as butter and cheese, te consumers in New Zealand should be governed by the London parity. Since New Zealand could not make motor cars, why not let the British car in free of duty if it was desired to give tariff assistance to British manufacturers ? MINISTER S REPLY. The Hon. Downie Stewart, Minister of Customs, replying, referring to the point raised by Sir Joseph Ward, said goods were coming into the country as British goods that were not (Continued on Next Column).

(Continued from Previous Column) reallv British manufacture, but were paftlj mad in Britain, thus qualifying to come within the scope of British preference by reason of the 25 per cent of material or work being British. It was then decided to try making the percentage 75, but this was found to be inimical to Britain, so New Zealand decided to try 50 per cent. . This was met in the case of American by makers assembling the cars in Canada. New Zealand could not take any steps that would hit at Canada, because the latter had been very fair in her treatment of New Zealand products. The Minister said British cars suitable for New Zealand needs will be on the market here in a month or two. They are already on sale in Australia. The Canadian Ford was a car used more than any other by the farmer, and on this the duty was to be eased,- which should enable its sale at a cheaper rate. About 27 per cent, of the cars imported into the Dominion were Fords. The duty on British cars was 20 per cent, on the cheaper makes and on similar foreign vehicles 50 par cent. This, while helping local body makers, would also assist British makers. Tho Minister said the ultimate result of the increased duties would be the establishment of assembly works in New Zealand, which would give employment to New Zealand skilled and other workers. The bill was read the second time, put through the committee without amendment, read the third time, and passed.