MOTOR DEALERS UNEASY

Southland Times, Issue 23792, 14 April 1939, Page 6

MOTOR DEALERS UNEASY

Possible Reduction In Imports SERIOUS EFFECT ON STAFFS FORESEEN More than a little uncertainty is felt by motor distributors in Invercargill about a report that it is proposed to reduce by 40 per cent, the importations of motor-vehicles into New Zealand. “If importations are reduced by 40 per cent.,” said the general manager of one big city garage, “there won’t be enough cars for the demand, and it stands to reason that there will have to be a reduction in staffs.”

Distributors, he continued, had not yet received their licences for the second period of importation in 1939, and the future was very obscure. Supplies of cars were now short in New Zealand, and cars were being rationed. His firm was receiving 32 cars for the next three months, and 24 of those were already sold.

The opinion that a reduction by 40 per cent, in importation, if it was also to apply to cars assembled in New Zealand, must necessarily mean a reduction in staffs was expressed by the principal of another big niotor firm. The total number of motor-vehicle registrations in 1938 for one company operating in New Zealand was 8366, and the company employed approximately 750 hands. “Knock 40 per cent, off that 8366,” he said, “and, automatically, the staff will have to be broken down by a big percentage. I don’t say that it would be 40 per cent., but it would be at least 30 per cent.

“I doubt, however, whether the Government will go so far as to reduce motor importations in such a drastic manner,” he continued. “Surely the Ministers concerned will realize what serious repercussions there would be if that step was taken. Every employee in every branch of the motor industry would be affected. To take one instance: A reduction of 40 per cent, in the importations would mean that many fewer men would be employed in servicing cars. Every car sold helps the service department and if fewer cars are sold there will be less work for the department. Then, apart from the big staffs employed in the construction, marketing and servicing departments, the men employed in the subsidiary services—petrol and service stations, tyre retailers and so on—would also be affected. The powers that be must consider these factors; and if they have considered them and are still going on with this proposal, then all I can say is that they are acting very foolishly.” The proprietor of another motor firm agreed that the suggested reduction in importations would be a serious thing for the motor distributors in New Zealand, but said he supported the principle that all vehicles imported should be assembled in New Zealand. In his opinion, preference should be given to companies operating on New Zealand capital.

“At' the moment, motor distributors do not know how to cut their cloth,” said a garage manager. His firm was interested in the construction of a motorassembly plant in the South Island. The outlook for this enterprise would be a dismal one if the motor importations were to be reduced as was suggested.