MOTOR INDUSTRY IN DOMINION

Southland Times, Issue 23793, 15 April 1939, Page 6

MOTOR INDUSTRY IN DOMINION

Big Reduction In Imports? NEGOTIATIONS WITH MINISTER GOVERNMENT’S DESIRE FOR MANUFACTURE IN N.Z. (Special to The Times) WELLINGTON, April 14.

Negotiations are in progress between the Minister of Finance (the Hon. W. Nash) and representatives of the motor industry that may have a highly important bearing on the future of the industry in New Zealand. For some little time proposals have been discussed for a reduction in the importations of cars and an increase in the local assembly trade. The proposed decrease is not known, but it is believed that the Government and the industry are arguing on the basis of a substantial reduction, possibly as much as 40 per cent. In an interview this evening Mr Nash admitted that the Government • was anxious to bring into operation proposals that would ensure maximum manufacture and assembly of motorcars in the Dominion. “We have been working along those lines,” he said, “but the negotiations are still going on, and so far nothing has been completed.” . Some such development as this would be an integral part of the Government’s present policy • as it would reduce financial liabilities to an appreciable degree overseas and, at the same time, promote expansion in a very important industrial unit.

Importers here are awaiting a pronouncement by Mr Nash on the Government’s policy of import regulation for the second period, but, so far, the Minister has not been prepared to make any statement and a good deal of dissatisfaction is apparent. The Minister had hoped to have something, determined by the end of' last month, but recent inquiries indicate that it will be a week or so yet before the desired information can be expected. Mr Nash has been particularly busy this week outside his routine office duties as he has had the freight conference and Labour Party conference to occupy much of his time, and now he has the Pacific defence conference, which is expected to take a week.

FEARS HELD BY CAR DEALERS 40 PER CENT. REDUCTION IN IMPORTATIONS? (United Press Association) WELLINGTON, April 14. Fears that the Government intends to reduce importations of motor-cars by 40 per cent, during the second six months of this year are held by some sections of the trade in Wellington. If this is done, it is stated, dismissals of employees not only in the distributive side of the business but also in the local assembly plants are inevitable. For the first six months of this year imports of all motor-cars have been permitted up to the full amount imported during the corresponding period last year. When the licences were being issued it was suggested that the reasorl why heavier restrictions were not imposed was that cars were continuously revenue producing >by way of tyre and petrol tax. It was pointed out then that most of the knockeddown cars coming into New Zealand were assembled in Petone, whereabout 1200 men are employed.