BRITISH BICYCLES

Otago Daily Times, Issue 26980, 15 January 1949, Page 9

BRITISH BICYCLES

IMPORTED WITHOUT TYRES MANUFACTURERS RESENTFUL Cycle manufacturers in Britain are far from happy with the ruling of the New Zealand Government that all cycles from now on shall be imported without tyres and tubes. This step, it is stated, was taken with a view to giving the newly born rubber industry in the Dominion an opportunity to develop. Manufacturers in Britain, however, when estimating their over-all production of cycles for the year, order from the Home rubber factories sufficient tyres and tubes to equip all the machines they produce, and the total runs into many thousands. Now, according to reports, they are left with the cycle rubber accessories on their hands. The trade, in a circular to Dominion retailers, points out that the action of the Government in adopting this course, will mean that purchasers of cycles will have to pay an additional 18s 9d per cycle—for the doubtful pleasure of running on Dominion-made tyres. The public, the circular points out, was anticipating that by the reduction of the exchange rates thfe price of cycles would be reduced, and retailers are instructed to point out to their prospective customers that such reductions are not forthcoming to the extent anticipated. The basis for import licences for 1949 for complete bicycles is 50 per cent, the value (not the number) of those imported in 1946, which is approximately equal to the value of licences granted for 1938. Unfortunately, however, as pointed out by the manufacturer, owing to increased factory prices, it was now possible to import only one-third of the number of cycles to-day * that were brought in during 1938. Added to this fact, it had to be borne in mind that New Zealand’s population had increased since then by 206,000. As one man interested in the trade pointed out yesterday, the Dominion expects Britain to take our meat and butter and other primary produce, but it is doing its best to build up an economy which was steadily closing the door to the importation of British goods. There would come a time, the businessman said, when Britain, having secured other overseas markets for her manufactured goods might be forced, in an endeavour to safeguard that trade, to accept in return just such produce which she now takes from New Zealand, and to the latter’s detriment. A cycle to-day priced at £2O could be bought for £6 5s in 1936. ' On present-day licence values, the number of machines arriving in the country is relatively small.