FEAR OF MONOPOLY

Waikato Times, Volume 122, Issue 20502, 19 May 1938, Page 8

FEAR OF MONOPOLY

MANUFACTURE OF TYRES FARMERB’ OPPOSITION ADVERSE EFFECTS PREDICTED (Special Reporter) AUCKLAND, Wednesday. The fear that the establishment of tyre factories In New Zealand would create a monopoly within the Dominion that would result in dearer and inferior tyres with a resulting increase in farmers' costs was expressed by Mr J- H. Furniss when he told the annual Auckland provincial conference of the Farmers’ Union to-day that application was being made for a license to establish a tyre factory in New Zealand, a country whose total tyre requirements could be supplied by an English factory within a few r days. ls a most extraordinary thing that farmers have been left to find out for themselves without any notification whatsoever, that an application for a manufacturing license for tyres is shortly to be made,” gaid Mr Furniss. Apparently the decision is to be made without reference to farmers’ interests, for farmers have not been invited to be represented at the hearing of the application.” Mobilising Publlo Opinion “If farmers do not mobilise public opinion against the granting of such a license,” continued Mr Furniss, “a monopoly having adverse effects on the farming community will be foisted on this Dominion. Farmers demand the right to be heard before any license for tyre manufacturing is granted.”

The following resolution moved by Mr Furniss was carried unanimously: “That representatives of the New Zealand Farmers’ Union shall be allowed to give evidence before the Department of Industries and Commerce before any license Is granted for the manufacture of motor-tyres in New Zealand.”

Mr Furniss added that they could only regard the failure of the department to make public the proposals with the gravest apprehension, as indicating the possibility of other applications for the establishment of other uneconomic industries being established.

Importers, he concluded, had obtained permission to give evidence and the motoring interests were gravely perturbed. They were relying on the Farmers’ Union to give an impetus to the opposition, and a lead to consumers for securing a thorough investigation before any proposals to grant & license for tyre manufacturing was carried into effect.