MOTOR IMPORTS

Gisborne Herald, Volume LXVI, Issue 20096, 16 November 1939, Page 2

MOTOR IMPORTS

LONG-DEFERRED DECISION THIRD PERIOD ORDERS AN ANXIOUS INDUSTRY (Special to the Herald.) WELLINGTON, this day. One motor assembly plant in Wellington has been closed down, and others are stated to be on the verge of stopping owing to the serious situation created by import restriction and the difficulties in arranging payment overseas. A rush of Defence Department orders has been welcomed by some assembly plants, thus staving off the unpleasant necessity of reducing hands unless the Minister of Customs soon makes his long-deferred decision regarding the proportion of importations of motor vehicles which will be permitted during the third period, from January next.

For three weeks the motor trade has been awaiting the Ministerial decision, without which plans for 1940 cannot be made, but nothing could be ascertained at the time of writing except that the Hon. W. Nash is obtaining certain essential information from overseas.

Defence requirements of commercial chassis have created a shortage of the particular lines needed, and some which had been privately sold had to be allocated to the military. » Difficulties of Delay The position is 'becoming acute in the industry owing to its inability to place orders in time for January delivery. Ordering has to be done at least four months ahead, but November is half through without the official “right of rood.” It is customary for orders to be placed overseas in September if delivery is to be secured in January, but the date is long past, and still the motor trade is waiting. So far, most of the anxieties associated with the permit system and financial arrangements overseas have been carried on the shoulders of commercial people, the man in the street scarcely understanding how serious is the position, as the only reminder of something abnormal is occasional failure to purchase a favourite imported article. However, the position is coming to a crisis. After the Christmas shopping, reserves will be exhausted and dismissals of retail staffs are to be feared. If the motor industry cannot soon make its plans for early 1940 the first sign will be largescale dismissals in the assembly plants, and the first shock will be borne by men living in the constituency of the Minister of Finance.