MOTOR TRADE.

Otago Daily Times, Issue 20706, 2 May 1929, Page 17

MOTOR TRADE.

"POSITION IN NEW ZEALAND. A TIMES SUPPLEMENT. (Fbou Otra Own Correspondent.! LONDON, March 14. Two articles on the New Zealand motor trade are contributed by the Wellington correspondent to.the very interesting and comprehensive British Motor Number issued as a supplement to The Times of March 12. The writer states that the improvement in the motor trade has not equalled expectations. The chief reason, he says, is a general one, applying to most sections of imports. “ Produce export values have assured the Dominion a good trade credit balance, but the recovery in spending power has lagged behind. Now, however, there are sure signs of a loosening of purse strings, and motor traders are hopeful of bettor business. A special explanation of the slowness of the motor trade recovery is that motor omnibus transport has been checked by the legislative protection given to established municipal tramways. When this protection was given it was thought that the muni cipalities would themselves develop.routes with motor transnort —merely using their authority to prevent wasteful duplication of services. _ But the corporations have in several instances been more inclined to stand fast on their power to compel their patrons to Use the tramcars. There is, however, hope of a changed attitude. The demand for full use of the motor vehicle is becoming more insistent and must result in the extension of services. ENGLISH MAKES. “A special difficulty encountered by English makers at present (says the, correspondent) arises from the fact that our British preferential duties apply to the whole of the Empire, and cars containing not less than 50 per cent, of Canadian labour and /or material can be imported at the preferential rate. One such car, assembled locally is proving highly popular. New Zealand does not wish to differentiate between Canada and others parts of the Empire. “Users appreciate the efficiency of the English light truck, but many of these users are men of small means to whom first ’cost is everything. In the heavy truck trade Great Britain is holding her own, though she suffers more than her competitors by the heavy vehicle tax and classification. There is a prospect of relief _in this respect at an early date. In anticipation of a greater demand for omnibus chassis, an effort is being made to secure an amendment of the regulations, \vhich do not meet the English deffiyout 1 ” ■ brakes and passenger QUESTIONS OF TRANSPORT. In another article the correspondent considers the question of transport in the Dominion. He explains the main highways system under which main roads are either directly constructed and maintained by the Highways Board, or subsidised by that board with funds obtained from vehicle taxes and State grants. ‘ The over-supply of commercial vehicles (says > the - correspondent) has certainly been injurious to the motor trade. Threatened by uneconomical competition, the municipal transport enterprises have obtained protection which enables them to bar motor transport which is progressive and sound, as well as that which is duplicative and -wasteful. Further, the inroads of road costs upon rates have led to tax measures which are oppressive to motor transporters who are meeting a genuine public demand for up-to-date service/ The correspondent explains the taxation anomalies and concludes; — “ Mr Coates proposed to convene a conference of local authorities, motor interests, and Government representatives to consider a new arrangement. The responsibility now devolves upon Sir Joseph Ward. He has stated definitely that he regards the heavy vehicles tax as unfair, and ho has proposed a commission of inquiry to consider the whole question of motor transport and the establishment of a motor transport board to comprise representatives of the Government, motor trade, motor vehicle owners, and local bodies operating motor fleets, either for goods or passenger transport. These steps should produce a reasonable measure of co-ordination. One of the first steps must be to place road construction and maintenance charges upon an equitable basis. Unless relief is given to the ratepayer by fe-allocation of the revenue according to ascertained cost, legitimate enterprise is in danger of suffering (ns it has suffered in the past) from further restrictive legislation and taxation directed against the duplicative services.’’