TYRE FACTORY

Southland Times, Issue 23182, 24 April 1937, Page 11

TYRE FACTORY

NO GOVERNMENT CAPITAL SECURITY FROM DUMPING ASKED (United Press Association) CHRISTCHURCH, April 23. The promoters of the proposed New Zealand tyre factory are in agreement with the statement by the Minister of Industries and Commerce (the Hon. D. G. Sullivan) that the Government has not intimated any intention to contribute to the capital of the company. It was stated today that the proposal was placed before the Minister as an alternative proposal should the Government not wish to foster a company in which the whole capital is in the hands of private enterprise. The original proposal placed before the Minister, on which its decision has not yet been given, is for a company whose capital is entirely owned in. New Zealand and by New Zealand citizens, in cdntra-distinction to several other proposals submitted the Minister by foreign companies, and broadly on the lines set out for the subscription of the original capital of the Reserve Bank. A considerable portion of the capital required is already available. A canvass has shown that, with all the facts before them, many motor owners will subscribe for shares. It is understood that other proposals for an exclusive licence have been submitted to the Minister by various foreign interests, but New Zealanders who are interested in a New Zealand-owned company consider it unthinkable, that the Government should allow this industry to pass under foreign control. It is considered that if the Government gives the scheme support the prices of tyres will be little, if any, higher than at present. What is asked is security against dumping and uneconomic competition.