Discrimination Against Luxury Cars

Press, Volume C, Issue 29515, 17 May 1961, Page 14

Discrimination Against Luxury Cars

Mr Selwyn Lloyd’s Budget may add to the difficulties of the British motor industry by reducing the domestic demand for expensive cars. The proposal limiting to £2OOO the cost of any car charged against income tax will affect the Rolls-Royce company worst. Immediately after the Budget the company warned that its production of cars, never particularly lucrative, could become uneconomic through a substantial fall in sales. If the manufacture of Rolls-Royce and Bentley cars ceased Britain would be deprived of internation-ally-recognised symbols of engineering excellence. Relatively few of these cars —about 30,000 —have been produced since the company was founded in 1904. Half have gone to the United States; but how many others regularly carry princely or senatorial passengers in the less prosaic

cities of the world? Even now the peculiar merits of its products may protect the company from the consequences of what amounts to a price increase for many British users. Alternatively exports may be expanded from their present annual rate of 50 per cent, of output It is difficult to quarrel with the Macmillan Government’s aim of preventing forms' of lavish private expenditure which are assisted by tax exemptions. But a Rolls-Royce is much more than an extremely efficient and comfortable vehicle; it epitomises prestige, and is an integral part of the British way of life. To maintain Britain’s maritime reputation the Government is contributing £lB million towards a new Cunarder for the Atlantic run. Can it grudge special treatment for Rolls-Royce if the need arises?