BOMBSHELL TO CAR FIRMS

Taranaki Daily News, 23 August 1930, Page 11

BOMBSHELL TO CAR FIRMS

DUTY ON CANADIAN MOTORS ORDERS SAID TO BE CANCELLED. REQUEST MADE TO THE PREMIER. By Telegraph.—Press Association. Wellington, Aug. 22. . A deputation representative of the motor trade waited on the Premier today requesting that cars under order and exported from Canada before October 1 next should be allowed to enter the Dominion under the old tariff rate. The ■ Prime Minister, while giving no promise that such a concession would be granted, said he would be pleased to go tully into the matter with the Ccmptroller of Customs. He stated that it was hoped the new duty would be of a temporary character. ;

Mr. Hope Gibbons,said that the Government’s action' in hbposing a special duty on Canadian cars naturally fcanu to . them as a big shock. They* understood the necessity for the move", but the announcement made yesterday necessitated them cabling their factories endeavouring to cancel all Canadian orders not yet exported. As certain of the orders were irrevocable the cancellation might be impossible, and they asked that such orders exported befoie October 1 should be allowed entry under the old rate. Mr. Charles Todd described t'ic new duties as a bombshell. The motor trade had been taxed in every possible way. England could not meet the modest de mands of New Zealand in motor-cars. His firm was losing money, and during the next 12 months would contribute no income tax to the Government and would be forced to reduce its staff.

Air. Forbes said the changes would cause a’good deal of difficulty to those who wdre marketing Canadian cars However, the only way New Zealand had to express its feeling ‘owards Canada in the matter of increased butter duties was to increase the duty on goods imported from Canada. It was hoped that as the result of the Government’s action it would be possible to come to, some satisfactory arrangement with Capada. ; .

CANADA RECEIVES A-SHOCK.

SUGGESTION FOR NEW TREATY. By Telegraph—Press Assn;—Copyright. Ottawa, Aug. 21. There is no official comment available to-day regarding the New Zealand decision to - place Canadian automobiles and accessories on the general tariff list. It is understood that the matter will shortly receive the consideration the as the automobils trade with New Zealand is fairly extensive and is growing. The whole question of Canada’s relations with New Zealand is expected to be canvassed by the Government with a view to negotiations later for a new direct trade agreement to replace the one lapsing in October. New Zealand’s placing of Canadian cars on the general tariff list is a shock to the Government, which was recently elected on, among other planks, barring New Zealand butter, It is hoped L x> placate Canadian exporters, particularly in British Columbia, by arranging a new treaty applying wholly to manufactured goods. The duty change is regarded as a severe blow to the manufacturers of Ontario, where the agitation is particularly strong, Manufacturers of British Colum bia are persistently urging the Government to. re-enact the New Zealand treaty, particularly regarding lumber, paper and salmon. The New Zealand development is regarded as likely to create strong opposition in Ontario to this demand.

MANUFACTURERS UP IN ARMS.

CANADIAN PREMIER ASSAILED.

Rec.; 7 p.m. . . Toronto, Aug. 21. The Toronto Star, in a Windsor despatch, etates that the New Zealand motor tariff will throw over 1000 Windsor employees; .p.u-t of work. , The automotive heads are up in arms over the situation and'are assailing Mr. Bennett, the Canadian Premier, claiming that the Canadian automobile manufacture is not only one of the Dominion’s most important industries but is also one of the most seriously affected by the world-wide depression, and this of all times is the worst to disturb the trade arrangements on which this industry depends. They also point to Canada’s growing unemployment figures. The “sales of the Ford Motor Company of Canada, stated the president, Mr. Campbell, would be seriously diminished.

President Mansfield, of the Chrysler Company, said the business would be transferred to the United States. It was indicated that the motor companies of Canada had lost approximately 51 million dollars worth’of business. ’■