MOTOR-CAR INDUSTRY.

New Zealand Herald, Volume LXIV, Issue 19753, 28 September 1927, Page 12

MOTOR-CAR INDUSTRY.

CRITICISM OF THE TARIFF. WIDER PREFERENCE SOUGHT. STABILITY OF DUTIES URGED. [BY rELtgraph, -special reporter. J WELLINGTON, Tuesday. While the motor-body builders of New Zealand consider the new tariff will not give their industry the protection that will enable them to satisfactorily compete with toreigu manufacturers and the importers of British machines would like a greater measure of preference for Empire motors, the importers generally are willing to accept the amended duties if they c.iii be giv%n some assurance of greater stability in the incidence of their taxation through the customs. These points of view were placed before the Minister of Customs. Hon. W. Downie Stewart, to-day by a large deputation. The Coach and Motor Builders' Association had as their chief spokesman Mr. W. J. Cousins, of Auckland, who told»the Minister that the torrent of abuse to which he had been subjected regarding the new motor duties mnsl not be regarded as coming from the industry as a whole, but rather from one or two individuals who failed to realise what he had been trying to do in order to put the industry on a better footing. Ihe body-builders considered that in order to place the industry in a position which would enable it to compete with outside manufacturers British chassis should be admitted free of duty and that there should be a reduction of 10 per cent, in the duty on foreign chassis. On whollycompleted British cars they advocated an increase of 5 pei cent, in the duty and on completed foreign cars an" increase of 20 per cent. Foreign Competition.

With adequate protection they felt they would be able to demonstrate to the Dominion that they could supply New Zealand's requirements at a reasonable price. Xhe new tariff seemed to threaten the extinction of the industry. fi,lr. Cousins said the introduction of the knock-down or, unassembled bodies' schedule in the tariff meant a death-blow to the body builders of the Dominion, as it would only give the leading manufacturers of unassembled bodies in foreign countries an incentive to commence operations in New Zealand. The preference for British unassembled bodies was appreciated, but Britain was not able to compete in that particular market. The Comptroller of Customs, Mr. G. Craig, said the reduction in the duty on chassis would mean increased protection for the body builders, making on British cars a protection equal to 100 per cent. Mr. (J. H. Hoyds, Christchurch, said since the manufacture of bodies had been commenced in the Dominion prices had been reduced 33 1-3 per cent, to 40 per cent. During the past year, however, the foreign manufacturers had reduced the prices of their completed cars, and there was now a gap between the price for the locally constructed machine and the foreign article. His firm would prefer New Zealand-built bodies, but the gap between the prices was too great to enable them to sell the local machine against the foreign one. Attitude ol the Importers. The case for the importers was put by their association secretary, Mr. J. t. Cousins, who said that even with the protection which had been given them during recent years the body-builders had not demonstrated their ability to compete against outside manufacturers. The importers were not boycotting locally-built bodies. It was suggested that the building of bodies shou.a ba confined to commercial vehicles and to buses. The builders had never attempted to compete with the mass-manufactured, lower-priced car. Mr. Cousins pointed out that during the past four years the Government had collected over £4,COO,Out) in customs duty on imported cars, and if this source of revenue was cut off by this erection of a prohibitive tariff wall the State would ] either have to reduce expenditure or find i the money elsewhere. Tie submitted the j solution of the difficulties of the builders would be found in their turning to the assembling of bodies manufactured abroad. Mr. Cousins said as importers they were willing to carry on with the new tariff until the time was opportune to give some relief In the meantime they would like some sense of stability—an indication that they would not have a revision of the tariff every year. The Minister's Beply. The Minister said from all the representations made to him he had gathered that what was wanted was a free British chassis, and if that could not be granted the next best thing would be a reduction in the duties on unassembled bodies. Tho British manufacturers had said the foreign makers had gained a lead on them in this business, but they hoped to make up the leeway in the near future. Assembling would be done in riot only the principal cities of tho Dominion bat also in the secondary towns to avoid the high internal freight rates on completed cars. Whether the present proposals would stand or whether new arrangements would be made was a matter that would have to be considered, added tho Minister. It was a point on which he would he guided by Mr. Craig. New Zealand could not admit chassis free. That would involve too great a loss of revenue. Whether it would be possible to take 5 per cent, off the duty on chassis instead of on bodies was another point on which he would have to be guided by Mr. C'rasg. He took st, however, that the body-builders would regard that as a reduction in their pro taction. ! Replying to a question, Mr. v\. J. \ Cousins said the body builders would prefer the old tariff to the new one. Mr. A. 0. Sutton said the importers of British machines desired British chassis free of duty, with 25 per wit. on foreign. The duty on completed cam should be !•> per cent. British and- 22£ per cent, foreign.