THE MOTOR BUSINESS

Hawke's Bay Tribune, Volume XVII, 28 September 1927, Page 9

THE MOTOR BUSINESS

effects of new tariff

TWO POINTS OF VIEW PLACED BEFORE MINISTER. Wellington. September 27 Two points of view of the new tariff as effecting the motor business were placed before the Minister of Customs to-day. Mr W. J. Cousins, speaking 011 be half of the Federation of Motor Body Builders, said that it was felt that the only way to meet the position was to remit duty on a chassis when the body was to be manufactured in the Dominion. British chassis should come in free and there should be 10 per cent, reduction on foreign chassis when the body was to be manufactured in the Dominion. Adequate protection was asked for to enable local builders to compete against foreign manufacturers. The noint of view of motor traders and importers, in opposition to that of motor body builders, was nut by Mr J- F. Cousins, who said anything that would make the tariff suitable to all parties would be welcomed, but they found that to be jbinossib l .' He thought that coachbuilders and the public failed to realise rhe amount of protection that had been given to the motor building industry, but which, up to the present, had failed to meet its objective. He >vas firmly of the opinion that the construction of motor bodies for the mass production type of lower priced cars could never become an imporant iqdustrv in this country. In the last four years the public had had to pay somewhere near £1,000,000 to protect the motor body building indus. try, and still thev were told that it was languishing. In that time the revenue from Customs duties on motor-cars had averaged £1.000.000 per annum. Importers preferred to go on with the tariff as it was at present, rather than have it tinkered with asain. On behalf of British manufacturers and agents. Mr G. 0. Sutton said they urged admission of British chassis free, with 25 per cent, duty on foreign chassis. The nresent proposal favoured American manufacturers. MINISTER’S REPLY. “You can see from what has happened here —that whenever vou touch any item in the tariff vou do not know whether it is a perfectly simple operation or whether it is full of dynamite,” said the Minister in re plying to tlie deputation. When the Tariff Commission submitted its report he had been told bv the chairman (Mr G. Craig) that there was no reduction in motor body duties. The other suggestion about a 5 per cent, reduction on unassembled bodies ne took to be in line with what was desired by various people interested in the British side of the industryWhether it would be possible to make some adjustment was a matter be would leave to discuss with Mr Craitr (Controller of Customs). One thing was certain, and that was that the* -could not afford to free the chassis. That would mean too great a loss of revenue. The representations made would be gone into but it was hound to be a conflict of interests, and they must tread on somebody’s corns, whichever way thev went, when thev dealt with tariff matters. In reply to a question from rhe Minister, it was stated that motor body builders would prefer not. ro have any change made in their tariff, rather than that the new proposals should be brought into effect.