LICENCE TO MAKE TYRES IN N.Z.

Southland Times, Issue 23513, 20 May 1938, Page 4

LICENCE TO MAKE TYRES IN N.Z.

PERSISTENT RUMOUR OF PROPOSAL AUTOMOBILE ASSOCIATION FEARS MONOPOLY (United Press Association) AUCKLAND, May 19. Concern was expressed at a meeting of the Automobile Association (Auckland) about a persistent rumour in motoring circles of the Government’s proposal to create a monopoly in New Zealand for the manufacture of motor tyres. In a statement Mr F. G. Farrell, the, president, said the association had requested the North Island Motor Union strenuously to protest against any proposal which was inclined to restrict the import of tyres or to increase the duty, levied on them, factors which, in the opinion of the association, could materially effect the retail price. Mr Farrell said the association offered no comment about the granting of a licence for the manufacture of motor tyres, provided the licensed company or companies were to be required to compete on equal terms with the existing organizations to produce an article of equal merit and- not be the means of increasing the cost of tyres which, in reality, would be a further tax on the already overburdened motor vehicle owner. Coupled with its protest, the association has asked the Motor Union to make a definite request to the Minister that if there is any truth in the statement that the Bureau of Industries intends to create a monopoly for the manufacture of motor tyres the project be not proceeded with until the proposals have been, fully explained to the automobile associations and due time allowed for representations to be made after mature consideration.