MOTOR-CAR TARIFF

Hokitika Guardian, 11 October 1930, Page 2

MOTOR-CAR TARIFF

ACTION AGAINST CANADA

BIRMINGHAM COMMENT

LONDON, August 28

“British .motor manufacturers,’’ says , the Birmingham “Daily Mail,” “will heartily welcome the decision announced by the New Zealand Government to place Canadian motor vehicles and accessories on the general tariff, thereby withrdawing from the sister Dominion the advantages she has enjoyed from the preference. The trouble has been, according to enquiries. made from the Society of MotorCar Manufacturers and the New Zealand Government Office by the London reporter of the ‘Mail,’ that about 22 American manufacturers have been shielding themselves behind the Canadian preference and flooding the New Zealand market at prices with which the makers in Great Britain found it difficult to compete. The New Zealand Government’s decision was announced after a deputation representative of the trade in Great Britain had been received by the Prime Minister, Mr Forbes. “The stipulations which New Zealand imposes upon the various countries of the British FJmpire if they are to have the advantage of the. preference are that all the finishing processes of the manufacture of motor-cars shall be performed ‘ in the exporting country, and the factory or works cost of the finished article must represent SO per cent, of British labour 'and of mate rial,' The American makers have beep finishing their cars in Canada in such a way as tp comply with the New Zealand regulations intended to govern the export pf Canadian cars and in that way have qualified for the preference, The principle which the deputation representing, the trade, of Great Britain advocated was the raising of the stipulated' percentages of British, labour and material to a higher level to qualify for preference. BRITISH MANUFACTURERS’ RECOMMENDATIONS.

“The advantages of the peference are generous, as the figures indicate. On cheap cars the tax payable by British exporters to New Zealand is 21 1 per cent., compared with 56$ per cent, imposed on foreign cars. In both cases there is a surtax on ninefortieths of the total duty. These are basic figures only, for on higher priced cars the rates are higher and are. regulated on a sliding scale- “ The action of the New Zealand Government cannot be. taken as final, for negotiations have been in progress for some time past between New Zealand and Canada to conclude a direct trade agreement, and feeling has run high in New Zealand over the positon taken up in Canada. The failure to reach an agreement has made some definite action on New Zealand’s part imperative, hut it is possible that before long Canada will again be giver the advantage of the preferential tariff, in which caw the recommend at iom of the oar manufacturers of Great Britain may call for further considera, tion ”