MOTOR-CAR IMPORTS

Wairarapa Times-Age, 15 April 1939, Page 8

MOTOR-CAR IMPORTS

FEARS OF DRASTIC CUT SECOND PERIOD LICENCES NOT YET ISSUED. SOME APPREHENSION FELT. (By Telegraph—Press Association.) WELLINGTON. This Day. Fears that the Government intends to reduce importations of motor-cars by 40 per cent during the second six months of this year are held by some sections of the trade in Wellington. If this is done, it is stated. dismissals of employees, not only in the distributive side of the business, but also in the local assembly plants, are inevitable. For the first six months of this year imports of all motor-cars have been permitted up to the full amount imported during the corresponding period last year. When licences were being issued it. was suggested that the reason why heavier restrictions were not imposed was that cars were continuously revenue-producing by way of tyre and petrol tax. It was pointed out then that most of the knockeddown cars coming into New Zealand were assembled in Petone, where about 1209 men are employed. So far, it appears, no motor firms in Wellington have received second period licences, but it is said, by some people interested in the trade that the Government intends to reduce by 40 per cent imports of all cars—British, foreign-, assembled and knocked down. Questioned about the rumour yesterday. the manager of one large firm said: “I think it is • indefinite. I wouldn’t like to say it is a fact, but it is quite on the cards.” If such a reduction were imposed, he added, it would be a serious matter for motor importing firms, and reductions of staff would be inevitable. He also said that his firm was waiting impatiently for its second period licences so that it could cable orders overseas. He did not think that any cars ordered under second period licences would reach New Zealand till August. In the meantime all the expenses of the organisation continued. STOCKS DEPLETED. REDUCTIONS IN TURNOVER REPORTED. (Ey Telegraph—Press Association.) WELLINGTON, This Day. ’ If restrictions on imports were not eased, there would be a large number of wholesale warehouse employees out of work within a few months, said a Wellington business man yesterday. Firms had been able to retain them up till now. but. with the depletion of stocks, this would no longer be post sible. In the case of his own firm, dealing with radio and electrical goods, import restrictions had reduced the turnover 50 per cent. The speaker added that, by requiring that goods licensed for . a sixmonthly period should be imported within that period, the Government was in .a large measure defeating its own object, of conserving London funds. , For instance, if the licence covered an indefinite period or even a period of 12 months seasonable goods, not required till the second half of the year would not have been imported and paid for during the first half, and the money involved would have remained to swell the London funds for a few months longer.