CANADIAN CARS.

Evening Post, Volume CXII, Issue 57, 4 September 1926, Page 7

CANADIAN CARS.

The Leader of the Opposition (Mr. H. E: Holland) asked whether the change in the . tariff would apply to Canadian cars. The Minister replied in the affirmative, and said he knew that some members thought that much of the exports from Canada was the product of American capital, but he did not see how they could discriminate between Canada and Britain. Mr. Holland said he was not thinking of that; what he was wondering was whether the Canadians would do assembling here. The Minister said he could only take the statement of those men that it was likely to be so. Canada had always treated New Zealand with generosity so far as tariff matters were concerned. Replying to a further question by Mr. Holland, Mr. Stewart said that the change would not affect Australia. The duties payable under tho special tariff treaty with Australia would be maintained, as they could only.be cancelled by the giving of six months' notice. After the expiry of that period Australia would be on the same basis. It had been stated that one effect of the change would be to, increase the revenue by over £400,000, but he maintained that they could not tell what the bearing would be on the revenue. The statement had been made, also, that the matter had not been before the Industries and Commerce Committee. That Committee had been extremely busy this session with a number of problems, but the matter had not been incautiously brought before the House. It had been. very carefully meditated for months past by the Customs Department, which had had both sides before it in getting out figures and analysing them. The Minister of Industries and Commerce had come to the conclusion that the change was beneficial and in the interests of New Zealand trade. Mr. D. G. Sullivan (Avon) said that there could be no doubt that the. New Zealand body-building business was being very hard hit, arid it had .been found necessary to reduce the number of men employed. There had also been a marked drop in the number of cars being turned out. It might be argued that the body-building industry was not natural to New Zealand, but the fact remained that it had been encouraged to a certain extent. He wanted to see New Zealand produce all that it required, whether it was motor-cars or anything else. In regard, to timber, he wanted to make sure that an increase in duty would not result in an increase in the cost of building houses. LOW-POWERED ENGLISH CARS. The Right Hon. Sir Joseph Ward (Invercargill) said that the tariff question was one that required the closest possible attention. Referring to the duties on imported cars, Sir Joseph said that preferential treatment had been given to countries within the British Empire, but in regard to Canada an analysis of the parts making up cars from Canada might prove of interest. The trouble in regard to English cars was that they were low-powered and were not suitable for use on the hills in and around' Wellington. On a long journey he would use an American car in preference to the English car. No matter what duty was put on the imported car, he did not think that the body-builders of New Zealand . would ever be able to produce the cars annually required. People in New Zealand could not be stopped from using cars. The motor-car had come to stay, and was used for utility purposes from one end of New Zealand to the other. Under the tariff proposals they would be lotting one American car come into , New Zealand at a cheaper rate of duty than it paid before. The Minister of Customs: "It's a Canadian car." Sir Joseph Ward: "No, actually it's an American car." Sir Joseph Ward said that it was undeniable that the result of the tariff proposals would be to Increase the cost of the car. Unless the British manufacturers produced a standard car or a special car suitable for New Zealand conditions, the people would have to take another make' of car, on which there would be a higher duty. That a rise would take place in the price of the whole of the cars in New Zealand was beyond all question. Sir Joseph Ward quoted figures showing the -increases which had taken place and would take place in the duties on foreign cars, and expressed the view that the tariff amendment* would not work

out in the way hoped for by the Minister. The tariff had been increased twice in five months. That was quite unfair to business people, who should be allowed a respite from one general tariff revision to another. Mr. J. R. Hamilton (Awarua) congratulated the Minister on having brought in the tariff, ', which was going to give Great Britain a certain amount of assistance, and provide revenue for New Zealand. Mr. Hamilton defended the British car aa against the American car. The view that the tariff would result in greater profits being placed in the pockets of an American corporation was expressed by Mr. A. Harris (Waitcmata). The whole matter needed very careful consideration, as there was a possibility that the tariff would further increase the adverse trade balance between New Zealand and Canada.