TRADE WITH BRITAIN.

Wairarapa Age, 6 March 1935, Page 7

TRADE WITH BRITAIN.

LORD NUFFIELD ON TARIFF POLICY. ■POSITION OF MOTOR IMPORTS. “The very real pleasure which. I feel in paying a second visit to the most British of our Dominions after an. interval of seven years, is marred by only- one regret—the unavoidable necessity of my stay being so short,” Lord Nuffield, head of the firm of Morris Motors Ltd., stated in an interview.

“From my own point of view, it is more than unfortunate that my many responsibilities at Home prevent me from being away for a longer period than fourteen weeks, as this will mean that the all too few days which I shall spend in New Zealand will be almost entirely filled by the business matters which I am here to discuss. During my first visit, I spent some ten days in motoring from Auckland to Wellingl- - via Rotorua, Wairakei and New Plymouth. I was very glad to have that opportunity of obtaining some experience of your roads, touring the Thermal district and seeing at least a few of the world-famous beauty spots of your North Island. This time, however, there will be little or no time available for recreation or sight-seeing, but it is one of my greatest hopes that, at some future time, I may have an opportunity of enjoying the almost limitless attractions which your unique country can offer to its visitors. If and when this opportunity arises, it is probable that my thoughts will first turn to the big game fishing of the North Island and the mountain beauties of the Southern one.

“My admiration and affection for New Zealand do not arise from any fleeting impressions gained from a previous short visit, although those impressions very considerably strengthened the convictions which I already held. At Home, her people are often described as being more British than ourselves, and they evidence the truth of this description, not only in their character and their ways, but also by reason of their ever-ready and genuine desire to buy as much as they can of all the (products of their best customer—the Old Country. “While I am well aware that it is often advisable to avoid comparisons, I cannot refrain from referring to the great difference between New Zealand and Australia in this connection. As customers, we at Home are just as valuable to one country as we are to the other, but I have noted with surprise amounting to almost alarm, that Australia seems unwilling to extend to us the measure of reciprocity which I feel we might expect. To quote the motor industry as an example, New Zealand, in proportion to her population, imports a far greater number of British motor vehicles than Australia. I feel compelled to forecast a far-reach-ing and perhaps tragic trade disruption between Australia and the Mother Country at some future time, failing an immediate move to overcome the grave and increasing lack of reciprocity which is gradually undermining the very foundations of the trade relationships between us. A possible solution appears to be provided by one of my earliest ideals, which I still cherish. 1 would like to see our great Empire welded into a vast commercial commonwealth, every unit of which would freely open its markets to every other and all would unite in raising tariff barriers against imported foreign produce.

“Turning again to New Zealand, and to her motor industry in particular, it is most encouraging to observe that during the year ending December 31, 1934, registrations totalled 9,699, compared with 3,635 for the previous twelve months. These are creditable figures, indeed, and they are additionally impressive if it be borne in mind that New Zealand's total population of a million-and-a-half is about the same as that of the city of Sydney, and the total registrations in 1934 for the whole Commonwealth of Australia were approximately 28,000 for a population of six-and-a-half-million. An even happier circumstance is that during 1934 nearly fifty per cent, of the 9,699 registrations were British (the comparative figure for Australia being 22 per cent.), while the New Zealand figures for January, 1935, show British automobiles to have captured more than fifty per cent, of the market. “Thanks to the efforts of Mr. Charles Norwood, who has been ably supported by a most efficient and modern organisation, over 1,560 Morris cars were sold in 1934, representing about fifteen and a half per cent, of the total sales in the Dominion. “It is with some hesitancy that I venture to touch on the subject of politics, but I am constrained to mention the tariff duties in relation to motor vehicles which became operative on January 1 of last year. These duties have made it compulsory for bodies and chassis to be exported to New Zealand in a completely knocked down condition; meaning the chassis have to be shipped in their main component parts and bodies in an entirely dissembled condition. This is the only country in the world where legislation necessitates such procedure which I would submit, is quite uneconomical. I am aware that in. imposing these restrictions, the New Zealand Government has in mind the development of the body-building industry in its own country, with a view to the alleviation of unemployment. That such a policy is fraught with difficulty is evidenced by the body-building experience of Australia, where body prices are 150 per cent, more than in Great Britain and are actually in excess of the c.i.f. prices of the chassis on which they are mounted. From general observations, it would‘'appear that these new tariffs will ultimately result in an increase in the cost of motor vehicles, and I would suggest to the Government that while their aim in imposing them has been to facilitate importations from Great Britain, there is a danger I that their action may result in an ad-

vantage accruing to foreign importers. “To conclude, I would like to assure the people of New Zealand that the quality and reputation of their products in our Home markets is deservedly second to none. For many years I have done all I can to urge that they be bought in preference to the foreign products with which they are in competition, and my endeavours in this connection will be intensified when I reach Home again.” Accompanying Lord Nuffield are Mr. Wilfred Hobbs, his private and confidential secretary, and Mr. G. A. Lloyd, Resident Representative for New Zealand and Australia.