" Industry Must Buy New Plant U NLESS there were continuous replacement
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of plant by modern equipment, productive industries would be unable to meet foreign competition, Mr. G. E. Liardet, chairman and managing director of Simms Motor Units, Ltd., says in his annual report.
"It is regrettable and very disappointing that in the last Budget concessions were not made to industry in general for this purpose," he says. "The present rate of company taxation makes it increasingly difficult to effect such replacement from retained profits unless these bear a high ratio to turnover, in -which case our products are again uncompetitive in overseas markets."
Mr. Liardet declares that it is vital that industry—and particularly export industry—should retain sufficient profit for plant replacement to take place regularly.
Discussing his own company's -progress, he claims that whereas the-quality of Simms' products entailed a low demand for spare parts, the long-term rewards must be substantial.
Simms' export turnover, Mr. Liardet reveals, reached a new high level in the 'past year. At most home branches repair departments were set .up to deal with all makes and types of vehicle electrical equipment, and a considerable increase in that type of business was expected.