THE PROTECTION OF THE INDUSTRY.
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The Deputation to Sir Auckland Geddes, on Import Restriction and the Imposition of a Duty, is Disappointed.
THE DEPUTATION arranged by the Association of British Motor and Allied Manufacturers, in connection with the need for the teniporary imposition of a substantial tariff against foreign commercial motor vehicles and a.gricultural tractors in ' order that the British motor industry should be able to regain and maintain its position, waited upon the President of the Board of Trade, Sir Auckland Geddes, on Monday of last week.
The commercial motor vehicle manufacturers were represented by :— .}, Mr. H. C. B. Underdown (Commercial Cars, Ltd., and President of the Association), Mr. G. M. Young (Albion Motor Car Co., Ltd.), Mr. W. R. Shephard (Daimler Co., Ltd.), and Mr. R. Dennis (Dennis Bros., Ltd.). , .
The agricultural-tractor manufacturers were represented by Mr. George Wood (Saunderson Tractor and Implement Co., Ltd.), Sir Herbert Austin (Austin Motor Co., Ltd.), and Mr. G. Pollock (Crawley Agrimotor Co., Ltd.). , Mr. Underdown introduced the deputation and said that, since the inception of the motor industry in this country it had been subjected to certain disadvantages which had told against them in competition. with foreign manufacturers. This fact had been acknowledged by Lord Balfour of Burleigh's Committee on After-war Trade, which referred specifically to the ill-advised legislation which had hampered progress in the industry. It was agreed that British manufacturers had large numbers of orders on their books, but large importations in the near future would lead to cancellation of some of them, and particularly those placed by agents whose contracts under existing conditions could not be enforced. The industry was, therefore seeking largely to retain these orders, for if any considerable proportion should be cancelled, reduction of output and unemployment must follow. The American industry was leaving no stone unturned to consolidate its export trade and to crush our competition.
The deputation urged the imposition of an import duty of 33-i per cent.' as was already applied to imported motorcars and motorcycles, to remain in force until the end of 1921 ; further, there should be a limitation in the number of commercial motor vehicles permitted to be imported into this country beforethe end of 1920' the limits in respect of each main class of vehicle to beidetermined with due regard to the probable early demands, to the outputfof the#British industry and to the number of Government vehicles awaiting:disposal.
Mr. George Wood then spoke on behalf of the agri cultural-tractor manufacturers. He showed how the manufacture of British farm tractors had been checked in the early stages of the war, and liter, when the food shortage became acute, how tractors hadlo'be imported to deal with. the danger. An attempt to recreate the tractor industry on' British soil was made so late as to have comparatii,ely sniall effect. The British 'industry would presently be capable of a considerable output.. provided'foreign competition during its period of infancy was not solfierce as to drive British manufacturers to reconsider their plans and to leave the business of farm tractors to the importers. At the moment, no Government en s42 coura,gement was offered, for, as with commercial motor vehicles, farm tractors can be brought into the country free of duty and in unrestricted numbers.
The anticipated aggregate demand for agricultural tractors for use in this country was not likely to be in excess of a total of 50,000 during the next five years. Optimistic opinion put the possible demand at 50,000 tractors during the next three years. Even taking this latter figure as accurate, the British industry was 'prepared.to guarantee to attain the rate of output at 17,000 per annum by the end of the year 1920, provided, in the meantime, it was classified as an unstable key industry.
Sir Auckland Geddes, in his reply, said that, the deputation having asked for temporary assistance, the answer, although it might not be satisfactory to them, was easy. Automatically; the industry has a very much higher degree of protection than. was ever dreamt of before the war.. With the 334 per cent. duty, by the time an imported private ear came on the market here, as a result of freight charges, packing charges, insurance, etc., and the loss on exchange, the rate of protection which existed was over 88 per cent. In the case of the commercial vehicle, there was an effective protection equivalent to a 45 per cent, ad valorem duty. Such a protection against America would exist for some time, arid it was therefore unnecessary, in fact contrary to the interests of the nation as a whole, to add a higher protection than that which now automatically existed. High prices were being paid for old Army vehicles, and there was no room for doubt that there was an enormous demand for commercial vehicles in the country which could not be met.
One .of the difficulties with which the country was faced was the getting of our railway services running evenly and smoothly, and it was necessary to increase the machinery for dealing with goods at termini in order to get' the internal transport of the country unlocked. There was an enormous demand within our own boundaries for commercial vehicles of the lighter type, and there was a great desire to absorb commercial xehicles of every kind, whilst the possible sources of..-supply and the dangers that affected them were known. There was a conceivable.source of supply across the Atlantic, which,On order to get to this market, would contribute or aticlto fhe cost of its vehicles something in the neighbourhood of 45 per cent, ad valoremod.uty. A tariff was not the way in which to deal withAhe requirements of the motor industry. He went further, and declared that it was perfectly useless at the present time. The Government could not agree to impose a duty on American lorries.
Mr. Underwood, Mr. George Wood and Difi. A. Spurrier replied, pointing out that the high prices now beinvobtained were. only temporary. The vehicles were nearly all of one weight:carrying capacity, viz., 3-i tons, whilst the manufacturers here went in for different weight-carrying capacities, and there wa.s at present no real dearth.except as regards the lighter types. 'Mr. Spurrier pointed out that, if the Governmen were not so abominably slow, 'they could put 15;01).0 vehicles on the market at the present tirne, thus materially reducing. prices. He said that the whole transport difficulty remains in the hands of the Government, and it is they who are hindering its solution.