SUGGESTED INCREASED TAXATION

New Zealand Times, Volume LIII, Issue 12538, 30 August 1926, Page 8

SUGGESTED INCREASED TAXATION

A BLOW TO THE ENGLISH MOTOR TRADE A request lias been made to Parliament for an increase in the present exorbitant body duty now levied upon mo-tor-cars imported into New Zealand. The facts of the case show conclusively that the very large amount of duty annually collected upon motor-car bodies, which was imposed for the purpose of assisting the New Zealand body-building industry, has entirely failed, as during the last four and a-half years there has been a decrease in the number of touring bodies locally manufactured, when, if the duties were effective, there should have been a considerable increase. Presuming, however, that the increased duties will induce local body building then mass methods must be employed. These mass methods can result only in an increase of American motor-car importations as against British, because only American bodies could be considered under any mass production scheme, the number of English motor-car bodies being comparatively too few to make mass production practicable English motor-cars coming into New Zealand today represent only 11 per cent, of the whole. It is, therefore, perfectly clear that the cost of producing American bodies in New Zealand, due to large quantities, will be much below the cost of producing English bodies, due to small quantities. The result is not far to seek. The English motor-car industry h&H been struggling against huge American competition, and the suggested tariff will practically finish the struggle, as it will mean the elimination of the English car. This would be disastrous, when the prosperity of New Zealand is entirely dependent upon the prosperity of England, and any measure which will restrict English trade will correspondingly restrict New Zealand's prosperity. The whole question of taxation of motor vehicles is one of such vital importance that the Government should proceed no further in the matter without a complete investigation of all available evidence. - (Published by arrangement.)