NEW CARS

Otago Daily Times, Issue 27012, 22 February 1949, Page 4

NEW CARS

SERIOUS SHORTAGE INCREASED LICENCES SOUGHT PA WELLINGTON. Feb. 21. "A serious shortage of new cars still exists and it is therefore hoped that the Government will favourably consider granting additional import licences for cars for 1949,” says a statement issued by the New Zealand Retail Motor Trade Association tonight. “In 1947 there was an increase in licences to import motor vehicles In 1946 the number of new cars registered was 5107, in 1947 there were 15,691, and 1948, 14,516. “ It is anticipated that if the Government adheres to its present policy and restricts licences to those given in 1948, the number of cars for registration will be between 10,000 and 12,000,” the statement continues. “ Many of the cars imported in 1947 were sold in 1948 and thus increased the 1948 figures. This will not be so in 1949 and therefore it is anticipated that there will be a substantial reduction in the number of cars imported during 1949 if the present decision of restricting importation to the same number of vehicles as in 1948 is adhered to.

“Prices are to some degree higher at the source of supply ana no benefit arises from the reduction in the exchange rate in that licences have been restricted by the percentage of increase which would nave come had the exchange rate been allowed to operate.” The statement added that the motor industry was concerned with the large demand for new motor vehicles and the shortage of supply. This was the main factor in keeping up the prices of used vehicles. The association hoped the Minister of Finance would give serious consideration to increasing licences for new cars.