"SENDING TRADE TO U.S."

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

"SENDING TRADE TO U.S."

OPINIONS ON NEW MOTOR TARIFF ENGLISH AGENTS PLEASED “If this tariff comes into operation it will simply send trade to the United States and put a heavier burden on the people of New Zealand.” This opinion was expressed this morning by a well-known Auckland motor trader, on the Prime Minister's proposal to retaliate by increasing the duty on Canadian-made motor-cars. “We will simply cancel our orders for Canadian cars and order our supplies from the United States,” said another trader. Dealers in British-made cars the new proposals with some jut | . tion, stating that it will cause tne public to buy more British cars. the past this has been one of the handicaps on British cars, but the recent tariff, and now the new proposals, will give them a decided preference. However, one dealer explained tha: England is really making only a sufficient number of motor-cars to supply her own needs, and that the motor industry at Home is in a good financial position. If she wishes to expand her overseas trade she will have to increase her production of cars. England is importing at present, for her own use. One prominent Auckland dealer olid not regard the new proposals very seriously and considered that the new move was merely a “try on.” “This new proposal is merely pre paring Canada for Mr. Forbes's visit/’ he remarked. “By the time the nev tariff comes into operation Mr. Forbcg will be passing through Canada on his way to London, and no doubt the whole matter will be discussed then. It will give the British car a decided advantage over the Canadian product,” he added. £SO ON TO PRICE “This retaliation by the Prime Minister will add another £SO to the medium-priced car which we import from Canada,” commented another w’ell-know’n motor trader this morning. ‘‘lf the Canadians could be forced to pay the increase, well and good, but it simply means that our own people are being forced to pay the extra cost. “New* Zealanders are being penalised. Staffs will probably have to be reduced and other economies made to meet the position if this new tariff comes into operation. The more expensive Canadian cars will have to be increased by between £6O and £70.” One dealer compiled a table shoving the various duties and taxes which are at present paid on foreign cars. As a basis, he took a motor-car, the invoice value of which was £2OO. The total duties on such a car amount to £149 12s Bd, made up as follows:

ASSEMBLED CARS The new tariff on Canadian cars will not interfere with assembling in New Zealand, one trader remarked. Cars assembled in Canada and shipped to New Zealand were really no dearer than those which were brought to the Dominion in parts and assembled here. There might be a slight difference in freight because of the space an assembled car occupied. CLOUD REMOVED “FAIREST THING FOR MANY YEARS” “It is a move in the right direction and the fairest thing which has come the way of the motor business in New Zealand for many years,” said the manager of one of the larger motor firms, handling American lines of cars "We do not mind the British car having preference, in fact, I feel it should have even more, but I do hold that in all fairness to importers, that all tars to be favoured with that preference should qualify as 75 per cent. British and not 50 per cent., which leaves a loop hole for the American exporter to do his business through Canada." "I can speak with all confidence that the large importers of motor cars direct from America are most jubilant at the move made by the Prime Minister in removing that cloud which has so fittingly acted as a camouflage for some United States manufacturers to export cars to New Zealand under the British Preference Tariffs." “UNFAIR ADVANTAGE” “It has been known in the trade fox a long time that the importers from Canada have had a very unfair sales advantage over those importing from the States,” continued this motor man. “They have only required to price their imports slightly under that of competitive American lines which have pai the general duty of 68.9 per cen against 26.03 per cent, paid by them, and therefore have a greater margi i of gross profit on which to operate ap at the same time dodging duties wn* c in all fairness to the country and i people should go to swell the Consolidated Fund." "And importers from U.S.A. are still looking to the Prime Minister bring Canadian and U.S.A. tariffs on a par as far as the importing of car is concerned, for this would enable h m to even reduce duties on the Engl s cars to which the genuine . En f\, manufacturers are justly entitled.

Invoice value £200 0 0 Add 10 per cent 20 0 9 £220 0 e Duty of 40 per cent 88 0 • Bodv duty 16J per cent, on £200 32 10 • Add 8$ per cent, on amount over £200 1 IS * Surtax 22J per cent 27 9 8 Total £149 12 8