TYRE MANUFACTURE

Timaru Herald, Volume CLVIII, Issue 23376, 6 December 1945, Page 6

TYRE MANUFACTURE

Refusal Of Licences Appeals Disallowed (N.Z.P.A.) WELLINGTON, Dec. 5. Reserved decision disallowing .nine appeals against the granting oy the Bureau of industry of licences to three firms to manufacture in New Zealand tyres and tubes tor motor vehicles has been given by the mdustrial appeal authority, Sir Francis Frazer. A tenth appeal against the refusal of the Bureau of Industry to grant a licence tor the purpose to a specific firm has also been disallowed. The three firms to which the Bureau granted licences were Reid (New Zealand) Rubber Mills, Ltd., Dunlop Rubber (N.Z.) Ltd., and the Firestone Tyre and Rubber Co. of N.Z., Ltd. Three firms which appealed against the granting of each of these licences were M. Michelin and Co., Ltd.. A. S. Paterson and Co., Ltd., and the Avon-India Rubber Co., Ltd. The tenth appeal against the refusal of a licence was by G. W. Skellerup. The weight of evidence is conclusive in showing that a country with conditions comparable with tnose of New Zealand and with 300,000 vehicle registrations can well support an economic tyre and tube manuiacturing industry, said Sir Francis Frazer. "In my opinion the evidence as a whole leads clearly to the conclusion that the tyre and tube manufacturing industry will be economic. Only three units have been licensed, and the limitation of the number of units will enable each to obtain a sufficient share of the market and so ensure full economic production. Furthermore, it has been decided that only the sizes and types in general demand shall be manufactured in New Zealand. Odd sizes and types which it would be less profitable to manufacture in New Zealand, and which constitute only about 10 per cent of the total requirements, will m the meantime continue to be imported. On the more general issue I am satisfied. having regard to the purposes of the Act, that the establishment of the industry in the form decided on ■will promote the economic welfare of New Zealand.”