THE MOTOR VEHICLE MARKET OF NEW ZEALAND.
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A Country which has a Growing Population, and is now Undergoing a Process of Industrial Development, Offers Attractions to the British Motor Manufacturer Not to be Ignored.
ri"..N THE occasion of the recent World
111otar Transport Congress held at Detroit, in the United States, Mr. Donald Cameron, the delegate of the New Zealand Motor Trade Association, read a paper containing many points of interest which are worthy of careful consideration by all those having at heart the development of the Empire and the growth of the export side of the British motor trade. For the benefit of British motor manufacturers who are cognizant of the potentialities of the New Zealand market, and who may. have in mind the development and exploitation of it, we have taken the opportunity of extracting those details of outstanding interest to them.
Having regard to the fact that New Zealand is so small and has only of late years been developed to any great extent, Mr. Cameron at the outset mentiened a few general facts. The total area of the country is 104,000 square miles, and its population 1 millions, its area being approximately the same as that of England, Scotland and Wales together. New Zealand is located 1,200 miles east of Australia, and became a British Crown Colony in 1841, as re
cently as 1907 acquiring the etatus of a Dominion somewhat similar in constitution to Canada. It is a country of great fertility, and is possessed of a temperate climate without extremes of heat or cold.
New Zealand has not yet become a manufacturing country, and depends for the bulk of its manufactured goods upon overseas countries. Its prosperity depends upon primary industries, and it is becoming world-famous for the quality of the meat and dairy produce. which it expor* to all parts of the world.
Six Millions Annual Motor Imports.
During the year 1923 the value of goods imported into the country amounted to £50,000,000 (at port of shipment), one-eighth of the total cost of the commodities inverted being motor vehicles, tyres and petroleum products, representing in the aggregate a sum of approximately £6,000,000. New Zealand paid for these imports by its exports. of produce, which amounted to about £52,000,000.
The whole of the country's . requirements in the matter of motor vehicles have to be imported, for no goods or passenger vehicles are manufactured in the country. During the past year 705 • commercial motor vehicles and private cars were imported from the United Kingdom, 8,305 from Canada, 4,745 Irons the United States, the remainder of a total Of 13,931 coming from European countries.
Although New Zealand is comparatively small as regards area and population, the place which it occupies amongst the countries of the world, according to the number of motor vehicles in use, is an important one, and Mr_ Cameron supported this statement by indicating that from amongst the 108 countries from which statistics relating to motor vehicles have been compiled, New Zealaind ranks twelfth. The number of motor vehicles in use in the country is given as about 50,000, equivalent to about one for every 29 inhabitants, including the Maoris (the descendants of the native inhabitants), who rank as the highest type of native of any country under colonial administration. There are about 50,000 Maoris in New Zealand, and since they are great believers in the use of the motor vehicle
and many of them own and operate such machines, it is necessary to consider their views and requirements when the market is under consideration.
According to Mr. Cameron, there are 44,000 miles of roads in New Zealand, 27,000 of W:aieh have been hard-surfaced, the remainder being largely built up of clay or of pumice, without any permanent surfacing.
In the past the formation and maintenance of roads have been tasks which have devolved upon the local authorities, each of which is responsible for the upkeep of the roads in the territory over which it exercises control, These authorities raise funds by taxing -the propenty owners, subsidized by grants from the Government. The advent and extended use of the motor vehicle have rendered a oardinuance of this policy impossible -and Mr. Cameron made it clear that legislation has recently been enacted to dear -with the question of highways. Under the Main Highways Act (1922) a Main Highways Board has been set up consisting of three members appointed by the Government, two members selected by local authorities and one member appointed by a body of motor users.
./ This Board, invested with comprehensive powers, has divided New Zealand into a number of districts, in each of which a subsidiary board has been set up, its duty being to pay heed to the development and maintenance of roads in the district. These are declared to be main highways, and such roads must 're constructed and maintained to a standard as devised by the Main Highways Board. All the reads under the jurisdiction eflthe Board are classified as primary or secondary roads. Under the Act previously mentioned, the -met of the construction of roads is divided between the Highways Board and the local authorities, whereas the coat of maintenance, is met, as to onethird, by the former, and two-thirds by the latter.
The Highways/. Board derives its revenue, so far as:the cost of read maintenance is concerned, from (a) the consolidation fund, not less than £40,000 per annum; (2) all revenue collected in respect of duty on tyres, amounting to approximately £170,000 per annum; (c) all moneys received for licence fees (this Lax has not yet been fixed). Funds for the construction of roads are raised by way of (a) loans raised by the Government for the purpose, and (b) appropriations from public works fund. Mr. Cameron stakes that the activities of the Board have not yet developed to any appreciable extent, although all the preliminaries have been arranged, and the scheme which it has promoted should be put into operation during the present year. British motor vehicles (including those produced in Canada) imported into New Zealand pay an ad valorem duty of 10 per cent., the tax on those products manufa,etured in other rosintries being 25 per cent., and, in addition, there is a primage duty of 1 per cent. and a fiat-rate duty on various types of bodies. On tyres which are imported into the country the same rates of duty apply 'as on cars, and the proceeds from this tax are earmarked for the Main Highways Board. .Mr. Cameron points out that. the present system of licensing and registra ton in use in the country is unsatisfactory, and that it is to be altered during the present year. Public-service passenger motor vehicles and heavy commercial vehicles pay an annual tax which varies from 11 to, in some eases, a sum in excess. of £100.
Mr. Cameron says that, "in the aggregate, the system of indirect taxation is heavy, and, together with the charges for freight, etc., makes the price of cars rin New Zealand very high compared with retail prices in manufacturing countries. In regard to lower-priced oars, the retail price in New Zealand is about double What it is in the United States of America." Moreover, the cost of operating vehicles is higher, in so far as petrol (although of better grade than that largely used in the United States) is approximately double the price which is charged there.
It is interesting to note that, although motor vehicles are not manufactured in New Zealand, that branch of the industry which is concerned with their upkeep and servicing is becoming an important industry in the Dominion, and; as a matter of fact, there are about 500 motor garages and repair shops establisohed throughout the country. Those engaged in the motor trade of New Zealand realize the value of organization, and the status of traders is gradually improving as the effect of concerted action is appreciated.
British industrial vehicle makers should pay heed to the statement of Mr. Cameron that, "with the provision of suitable roads, the growth of road motor ;traffic is likely to be phenomenal, more particularly in respect of commercial motor vehicles."
The Government already realizes that road transport is, in many cases, more economical than transport by rail, and
short branch-line railways are likely to be superseded by road Motors. The ,nailways of the country are Government owned. Where it is found necessary for additional transport facilities the Minister of Railways and Public Works decides whether short branch-line railways Shall be constructed to link up with the main lines, or whether road motors shall be used to act as feeders to the existing railway services.
On account of the long and narrow configuration of New Zealand, the future inland transport of the country is likely to be provided by railways running lengthwise, these services being sup-ported by motor vehicles serving as feeders and running to and from the coast.
In conclusion, Mr. Cameron state that most New Zealanders firmly believe that their country will become the Great Britain of the South Seas. With the increase of population, the opening up of the _country in many. directions, and the provision of good roads, the growth of road transport should be greater, proportionately speaking, than that in most other countries.