TARIFF REVISION

Otago Daily Times, Issue 21998, 6 July 1933, Page 7

TARIFF REVISION

DUTIES ON MOTOR VEHICLES REMOVAL OF IMPOST SOUGHT (Peb United Press Association.) WELLINGTON, July 5. A joint case on behalf of the New Zealand Wholesale and Cycle Trader#’ Association and the New,Zealand Motor Trade Association was presented to the Tariff Commission to-day. Mr Cousins, who presented the case, said the duties on motor vehicles under the present tariff were levied for revenue purposes, and as special protection to foster motor body building. He said these duties were not justified for a number of reasons. Motor vehicles were subject to other forms of taxation for revenue purposes, and motor vehicles were not manufactured in New Zealand. It was claimed that it was not practicable to establish in New Zealand a successful industry for the manufacture of bodies for the popular types of passenger ears, though he recognised that there was a field in respect to large passenger and goods vehicles. It was asked that British raotob vehicles should be placed on the free list, and that a corresponding reduction be made under the general tariff. Mr A. E. Mander, secretary of the New Zealand Manufacturers’ Federation, asked whether the British manufacturer did not charge an unduly high price for chassis as compared with a complete car. Mr Cousins said that he did not think so, as there were firms making chassis only and competition kept prices down. Mr Mander: I suggest that if there were no motor bodies built in New Zealand it is probable that the duties would be considerably higher. You will recognise that the duty on motors is for revenue purposes? Mr Cousins said he was not in a position to answer that question as it was a matter of assumption. Dr Craig asked whether there was a tendency to use timber for the manufacture of inotor bodies. Mr Cousins said that it was a 50-50 matter at the present time. Professor Murphy suggested that the duties were not entirely revenue duties as the motoring public got a quid pro quo in the matter of surfaced highways and other facilities. The duty wag just a compulsory form of levy for motoring purposes. Mr Cousins; Yes. Professor Murphy: Do you seriously suggest that motor vehicles should not be subject to duties for revenue purposes? Mr Cousins said he thought that direct taxation would be more equitable. Professor Murphy: What forma direct taxation ? Mr Cousins: An increased petrol tax. for example. We think that is fair taxation. Professor Murphy said that petrol tax was really an ear-marked trust fund for reading purposes, and would be placed on that basis again after the depression. Mr Cousins: Yes, we hope so. He said that if the Customs duties were lifted the motorist could afford to pay more taxation directly, and there would be an increase in the transport business. Professor Murphy: Don’t you thin* transport business is overdone to-day? Mr Cousins: Possibly. Professor Murphy; I think it is a heavy load on New Zealand. Mr Cousins said that a reduction in duties would mean extra license fees, and the revenue would benfit in other ways. It was just a question at the present time whether the duty was not killing the goose that laid the golden eggIn answer to Mr G. A. Pascoe, Mr Cousins said they had inquired into a scheme of Imperial co-operation by which certain processes in the manufacture and assembly of cars could be carried out by agreement in New Zealand, but they did not think it was practical.