A PERSISTENT RUMOUR

Otago Daily Times, Issue 23517, 3 June 1938, Page 11

A PERSISTENT RUMOUR

MOTOR TYRE INDUSTRY DOMINION MONOPOLY ALLEGED (Per United Press Association) AUCKLAND. June 2. Persistent rumours that the Government proposed to grant a monopoly for the manufacture of motor car tyres in New Zealand was arousing widespread resentment in England, said Mr W. H. Boucher, at a meeting of the Council of the Auckland Chamber of Commerce. The following cable message, received by Mr Boucher from the Reciprocal Trade Federation of the United Kingdom, of London, just before the meeting, was read to members:— “Resentment and perturbation is strongly growing among the motor and allied interests here following a rumour that the New Zealand Government is about to issue a licence to a Christchurch man for the establishment of a tyre factory. This will lead to retaliatory measures against New Zealand dairy produce and meat with the motor industry’s workpeople. Surely the establishment of a secondary industry for tyre manufacture, which would employ only 400 people and lose New Zealand much Customs revenue and a big market here, must be against New Zealand interests.” Since it was considered that an English factory could manufacture sufficient tyres to supply the Dominion’s annual requirements in eight days, it seemed radically wrong to establish an industry in New Zealand, said Mr Boucher. It was unanimously decided to request the Government to seek the views of the motorists unions, the Farmers’ Unions, transport organisations, and those engaged in the distribution of tyres, before giving any consideration to the granting of a monopoly for the manufacture of rubber tyres in the Dominion.