What the Motor Industry Requires
Page 24
If you've noticed an error in this article please click here to report it so we can fix it.
Leading Points From the Powerful Presidential Address Given by Mr. C B. Nixon, Chairman and Governing Director of Leyland Motors, Ltd., at the Annual General Meeting of the S.M.M.T.
GIVING his presidential address at the 43rd a,g.m. of the Society of Motor Manufacturers and Traders, Mt C,. B. Nixon referred to the amazing progress that had been made in the war, during the past year.
rn all these stupendous events the British motor industry Las splayed a part that has been essential ar.d outstanding in its magnitude. It is not genefally .appreciated that from the • automobile industry by far the greatest number of technicians has been drawn to design and produce special vehicles. Tanks and other weapons.
The Country must never be allowed to forget, in planning for the future, that an enterprising and flourishing motor industry here, and a large pool of highly trained and experienced technicians, are .essential to its strength' and prestige, its defence, and prospects • of peace in the world.
In this intense activity Britain has led in technical advancement. Proportionately to her resources, and thanks to the steadfastness and unity of her People, She has achieved more than any Other nation.
There is now an immense amount of • goodwill and willingness to serve, which must not be frittered away. How, then, asked Mr. Nixon, are we to ensure that these are carried over into the postwar years?
There are considerable difficulties ahead, hut, speaking generally, the problems of production will be solved, It is rather in such fields as considerate • application of the Break clause to Government contracts, marketing • (nationally as well as internationally), • rationalization, purchasing power, foreign exchange, tariffs and quotas, where uncertainty is not dispelled, and where an absente of any defined. policy, at once comprehensive and acceptable: is apparent.
World Standard of Values
He was. convinced that a world standard of values is essential and that all proposals for Government, industrial or other action are capable of being focused, add adopted or rejected by one criterion,, Which, as it is both • ethically . and . economically sound, should be acceptable as a basis of 'united. policy. That standard is the democratic principle of betterment to the cOminursity, emphasis on people rather than nations—value to the average family everywhere, starting from the bottom, Corollaries to this overriding principle are (a). Those who contribute to the eccomplishment of any task whichmeets with general approval are entitled to reasonable award or profit, whilst those who, for their own ends, seek. to sabotage accepted plans, should he liable to • suitable restraint; (h) benefits toone industry, class or nation
• must not he sought ley exploiting others adversely; :(c) satisfactory permanent international trade can be based only on mutually acceptable interchange of goods and services; (d) competition in design, production and performance are not incompatible with an overriding co-operation on broad, principles of progressive development.
The logical basis for progress is the setting of a high level of betterment and the preparation of a comprehensive schedule of what we want and may reasonably, expect to achieve.
Industry a I.iving Organism Industry is not static, but a living organism, the direction and Progress of which cannot be planned, just as employment cannot be, :by politiciansa. Mrs Nixon foresees that industry.anust be geared ail aeeund for a maximein imperial development and expansion by sorne body of scientists and.those intimately asSociated, from inside industry, with its ever-changing possibilities, supported by a general staff, and of far wider conception than is at present available, and charged by Parliament to achieve these results.
Industry, especially the motor side, is at present baffled and cannot plan efficiently with any degree of certainty until the major issues involved are Clearly laid down.
Private enterprise in our industry has been frustrated by various unimaginative Controls. Its plans inevitably involve heavy -initial expenditure, arid an 8 to 10 years' development cycle. Success, however, is possible only if supplies become available •at prices competitive with those enjoyed by our cempetitor§ oyeraeas. It is essential, therefore, to clarify uncertainties. Those already mentioned, together with -a uational road policy, the rule of the road, motor taxation, cost Of materials, the intentions of the Governtnent in implementing its full-employment policy; recovery of terminal toSses and the cost of rehabilitation; and, as regards commercial vehicles, revision of the Construction and Use Regulations, and the policy of the Government. concerning the socialization or otherwise of transport.,
The Main Materials Committee of the Society, under the-energetic lea. ership of Sir Witham Recites, haS had. conversations with the steer glass and light-alloy suppliers, which have been satisfactory so far as they have gone. It is now dealing with the diffenit sub
ject of a sufficiency of rublser. Ae• regards that hasiceresetal, steel, thetime has surely arrived when, if the:output of inefficient plants he still essential to the Government, they should, if necessary, be subsidized temporarily
directly and not by levy on the sale price of more efficient products.
Mr. Nixon mentioned that, as a minimum, the motor industry requires 550,000 tons of high-class steel per annum. This demand might well he trebled if the industry he assured of Success. .
The Society would like to see the country free, enterprising and again leading the world in competitive transport improvement, with a display of keenness to produce the best possible in road, rail, air and water transport.
Concerning cartels, he stated categorically that British motor manufacturers are individualists, believing in free enterprise and competitive efficiency, arid they have no price agreements. They demand that their suppliers should be imbued with a like spirit,
As regards taxation, the Chancellor of the Exchequer has •already' made certain offers helpful to the operators of goods and p.s. vehicles, and without being optimistic, the remainder of the industry is not without. hope that realization of its potentiality may bear fruit in more reasonable treatment.
It is not generally realized that the motor vehicle is the only product burdened' with taxation the weight of which affects ariangements for its productien. Every change in the incidence of taxation of any motor vehicle must involve new designs, jigs, tools and often buildings. Thus such changes as are found to be desirable must he settled some years in advance.
There is no doubt that the concessions under the Income Tax Bill will be of great value to the industry and' those who supply it. There are, however, omissions concerning which no pronouncement has yet been made; in particular, the method by which terminal tosses and the cost Of reconversion may be recovered. The E.P.T. at 100 per cent. encourages no one to expand, re-equip or find methods of increased efficiency. It removes the incentive to seek fresh markets overseas. A' suggestion for exemption or partial exemption from E.P.T. of profits ploughed back in new equipment, and of profits from export, is offered for sympathetic consideration.
A National Scheme for Roads
Mr. Nixon said that the industry is not satisfied with the announcement made in regard to a forward road rpolicY. ' If supports the flritish Road Federation 'in seeking to secure some more definite pronouncement and a timetable of major-improvements.' No exception can be taken to the building of the most urgently needed' sections of motor roads through industrial zones, but this must be planned to fit into an .agreed national scheme to be completed
-in subsequent stages. • •
It is expeCted that schemes d-ealing with the much larger problem qf postwar disposal, will shortly be a.vallable. for consideration, but any worth-while solutions must be international.