IMPORTS AND TAXATION.

New Zealand Herald, Volume LXVI, Issue 20324, 3 August 1929, Page 12 (Supplement)

IMPORTS AND TAXATION.

FEW CAR CHASSIS.

Statistics reveal that thero is no tendency for Now Zealand body-builders to secure a larger share of tho work on imported cars. Somo very high quality bodios aro being built in tho Dominion, but the industry is showing no signs of compoting with factory bodies on a prico basis. Last year only 614, or 4 per cent, of the cars imported wore chassis and yet tho body duties of 10 por cent. British and 15 per cent, general are still levied on the overall prico of every car to protoct this small industry. Thoro is every justification for protection for commercial vehiclos and tho Now Zealand body has no peers, ' but this body tax yielded £261,801 from cars last year for tho sako of producing 614 bodies in Now Zealand. This is an average of £426 paid in protection for each body manufactured in New Zealand. Tho Now Zoaland Motor Trade Association considers tho levy unjustified and it is considered that a great many motorists aro paying levies for tho benefit of a very small Dominion output. If tho industry was making groat s(rides under tho protection thoro would bo few complaints, but the output of Now Zealand car bodies seems to bo destined to continue at little rnoro than 600 a year. During tho first six months of 1929, tho imports wore 10,936 cars and 311 car chassis. Most of tho chassis wore British, bodybuilders having proved their ability to turn out some vory lino special bodies for certain makes of British cars. Evory ono of these 10,936 cars had to pay either 10 per cent, or 15 per cent, on tho total value of the chassis and body for tho protection of the local industry, which as far as tho half year is concerned, will provide bodies for less than 3 per cent, of the total car imports Tho bodybuilders havo claimed that with adequato protection they could obtain a very creditable share of tho bodywork for cars sold in New Zoaland, but already tho New Zealand motorist is paying up to the limit. Tho ordinary tariff and this special body duty, which is really an ovorall tax on every completes car, amount jointly to 20 per cent, on British cars and 50 per cent, on American makes. Tho average duty on all cars imported in 1928 was 35| per cent. This money is not in the smallest part nscd for raiding and it is tho heaviest shacklo which could bo put on unless tho official attitude is to be definitely discouraging to motor transport. American cars entering Great Britain pay 33 1-3 per cent., but retail in England considerably below the prices in New Zealand. Then the British motorist has a great variety of English cars to choose from. It is thus possible to bring car ownership within reach of the lower wage earner, who would be debarred in New Zealand. Following are details of the car and chassis imports info New Zoaland during tho first half of 1929: Cars. Car Chtissis , No. No. United States v < ,7r.n 3C> Cannda .. n *. 4,833 B'2 Great Britain .•■ . . 1,329 181 Belcium .. . .. 3 11 Italv . . ■, . . Franco *, . .. 1 10.93G 311 COMPARATIVE CAR COSTS. Becognising the fact that an American car may sell in New Zealand or Australia for between 7s 6d and 9s for evory dollar of the retail prico in the United States, manufacturers are considering new market problems from tho point of view of tho lower-wage earners in tho colonies. It is realised that the prospective purchaser in the overseas markets is handicapped by the initial cost of automobiles, and tho higher charge for petrol, oil and tyres. The difficulty is, considering duties and freights, to present cars overseas at prices which will open up the lingo potential market among the very moderate wage earners.

A purchaser in the United States five years ago could obtain a usable twopassenger car for as little as 260 dollars and a usable five-passenger car.for as little as 290 dollars. To-day that same make two-passenger car costs 450 dollars, or an increase of 73 per cent., and tho samo make five-passenger costs 460 dollars, or an increase of 58 per cent. Conditions in the United States have beon changing: purchasing power has increased, demands are for larger and better cars, and, in consequence, prices have risen. _ This trend is in exactly the Opposite direction to tho economic needs of thn overseas market. Tho lowest-priced American car m the overseas market today sells for around 800 dollars, which is an increase of about 200 jier cent, over the price of tho lowest : price, usable car that could he purchased in tho American market several years ago. The following table shows the retail prices of a four-cylinder sedan car sold in Detroit for 675 dollars, or £l3s: 1 „ Wealth Retail Per Prico Capita Dol. ■ )).c. Detroit „» ~ 675.00 100 Tiondoa .. .. 1.M2.00 90 Berlin 3,000.00 41 Port Elizabeth, S.A. 1,237.00 2.1 Melbourno, Australia . 1,527.75 05 Wellington, N.Z. . . 1,855.00 !)2 *' Novor has there been an American car in tho overseas market selling for as low as, or even, 350 dollars, or £7O. The 800-dotlars American car in tho overseas market is in a markot that has only about 66 per cent, of the purchnsing power of the American market to-day," states Mr. J. D. Mooney. an American authority. " Considering the purchasing power of tho overseas market as being in tho ratio of 66 to 100 per cent., tho overseas markot has not reached tho samo relative position as in tho United States: yet we find a product in this markot that is moro expensive to own and operate than it is in tho United States."