TARIFF CHANGES

Hokitika Guardian, 29 September 1927, Page 4

TARIFF CHANGES

MINISTER AND .MOTOR INDUSTRY WELLINGTON, Sept. 27. Two points of view of the new tariff as affecting the motor business were placed before the -Minister ol Customs to-day.

.Mr W. d. Cousins, speaking on behalf of the Federation of .Motor Body Builders, said that it was felt that the only way to meet the position was to remit the duty cm the chassis when the body was to lie manufactured in the Dominion. British chassis should come in free, ami there should be 10 per cent reduction on foreign chassis when the body was to be manufactured in the Dominion. Adequate protection was asked for to enable local builders to compete against foreign manufacturers, because Britain was not building bodies on the knock down principle as were some foreign countries. It was claimed Hint, the importation of knocked down bodies, while it might provide employment. for unskilled workers, would diminish the number ol skilled workers in the Dominion.

The point of view of motor trailers and importers in opposition to that of motor-hudy I m I filers was put by Mr .1. K. Cousnis, who said anything that would make the tariff suitable to all parties would lie welcomed, but they found that m be impossible. ITo thought that the coach-builders and the publie failed to realise the amount of protection that had been given to the motor-building industry, hut winch up to the present had failed to meet its objective. He was firmly of opinion that the construction of motor-bodies for the mass-production type of iowet priced ears would never become an important industry in this country. Ho denied that there was any concerted action on the part of importers .to restrict the building of bodies in Xew

Zealand. Tn the last four years the public had had to pay somewhere near one million pounds to protect the motor-body building industry, and still they were told that it was languishing. In that lime the revenue from Customs duties on motor-ears had averaged one million pounds per annum. Importers preferred to go on with the tariff as it was at present rather than have it tinkered with again, as stability was wanted for the motor industry. A complete investigation of the whole question was recommended. The new tariff would not make any difference to motor-body builders and tbe suggestion that it would close all tbe workshops was unfair anil unsound. On behalf of British manufacturers and agents. Mr G. 0. Sutton said they urged the admission of British chassis free, with 25 per cent duty on foreign chassis. The present proposal favoured American manufacturers.

11 You can see from what lias happened here that whenever you touch any item in the tariff you do not know whether if is a perfectly simple operation or whether it is full of dynamite,” said the Minister replying to the deputation. When the tariff commission submitted its report he had been told by the chairman \.Mr G. Craig) that there was no reduction in motor-body duties. The other suggestion about 5 per cent reduction on unassembled bodies lie took to be in line with what was desired by various people interested in the British side ol the industry. Whether it would be possible to make some adjustments was a matter he would have to discuss with the Controller nl C ustoms. One thing was certain, and that was that they could not afford free iliassis. That would mean too great a loss of revenue. ’lhe representations made would he gone into, but it was hoped to bring on the Tariff Bill almost immediately. There was found to he a conflict of interests, and they must trend on somebody’s corns whichever way they went when 1 1iev dealt with tariff matters.

In reply to a question from the Minister it was stated that the motorbody builders would prefer not to have anv change made in Hie tariff rather than tiiat the new proposals should he brought into effect.