NEW MOTOR TARIFF

Sun (Auckland), Volume IV, Issue 1057, 22 August 1930, Page 10

NEW MOTOR TARIFF

(Continued from page 1.) It was not a question of levying a duty for revenue purposes, and he would go into the question and see if they could be met regarding the extension asked for. In the meantime their position was slightly better than that of dealers who imported cars from the United Stares. Mr Todd: The position is practically the same. The Canadian car is taxed on a higher Customs value than an A Mr H< Gibbon r s: We feel sure that you Win sain your point, but if the increase is made in the meantime it will be very disturbing to business. SHOCK TO CANADA NEW TREATY MAY FtESULT FROM TARIFF CHANGE MANUFACTURERS IRATE Reed. 9.5 a.m. OTTAWA. Thursday. The action of the New Zealand Government in placing Canadian cars on the general tariff is a shock to the Government which was recently elected, upon the promise, among other planks, of barring New Zealand butter. It is hoped to placate Canadian exporters, particularly in British Columbia, by arranging a new treaty applying wholly to manufactured goods. The duty change is regarded as a severe blow to manufacturers in Ontario, where the agitation against the New Zealand treaty was particularly strong. Manufacturers in British Columbia were persistently urging the Government to re-enact the New Zealand treaty, particularly regarding lumber, paper and salmon. The latest development is regarded as likely to create strong opposition in Ontario to this demand. No official comment was available upon the decision of the New' Zealand Government, but it is understood the question will shortly receive the consideration of the Canadian Government. As the automobile trade with New Zealand is fairly extensive, and is growing, the whole question of Canada’s relation to New Zealand is expected to be canvassed by the Government with a view to the negotiation later of a new direct trade agreement to replace the one expiring in October. USED CARS INCREASE IN VALUE If anything, the proposed new tariff will increase slightly the price of used cars. One trader stated this morning that many used cars have been traded in by dealers at prices far in excess of their real value. The increased tariff would send them up slightly but only sufficiently to give dealers a chance of making a little of what they had expected to lose. Another trader holds, however, that the second-hand cars are to become much more valuable and there will be a greater demand for them. "And it is giving the genuine English manufacturer the best chance he ever had. It is to be remembered that the English car has been much improved over recent years and is now quite suitable to our road conditions. In fact, I can see many of the American car agents now seeking agencies from England," he said. "It means that the cheappriced American car will be replaced by that produced in England.” IMPORTS FROM CANADA N.Z.’S BIGGEST SUPPLY More than half the motor-cars imported into .New Zealand come from j Canada. For the six-monthly period ended in ' June, the total number of cars landed in New Zealand was 8,983, of which 4,570 came from Canada. The total value of Canadian motpr vehicles imported into New Zealand during that period was £554,990. Those from the United States were valued at £504,829. Canada also supplies most of the motor tyres used in New Zealand, and a large number of motor accessories. The increase in duty will almost inevitably be passed on to the motorist, so that an increase in the price of tyres is imminent.