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SHOP TALK

22nd December 1988
Page 63
Page 63, 22nd December 1988 — SHOP TALK
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Which of the following most accurately describes the problem?

• "The components industry employs more people and generates more exports in its own right than do the vehicle makers," Sir Godfrey Messervy, president of the Society of Motor Manufacturers and Traders, told the SMMT's annual banquet.

Was he being complacent? Presumably not, for he went on to say that the industry's aim must be to match Continental and Japanese competitors in quality, productivity and, ultimately, in price. He stressed the need for a sound political and economic framework on which to build success, with Government commitment to the prosperity of a strong domestic motor industry. That was why, he said, they spent so much time and effort communicating with politicians and Whitehall officials.

Sir Godfrey listed barriers to progress: an inadequate and unpredictable road system; no recovery of Vat on business cars; and an extra 10% tax on every new car sold.

"Whoever heard of the Germans taxing innovation? Yet we in Britain do not get tax relief from duty on fuel used for testing and developing engines.

"Our commercial vehicles are among the most highly taxed in Europe, but changes in our capital allowance system have reduced the ability of operators to replace their vehicles as often as they would have done under the previous system. That is harmful, not only to the market but also to safety and the environment."

• At the outset of each year, the incoming president of the Garage Equipment Association attempts to set a theme for his year in office.

Last year Gavin Masterton brought the GEA back to basics with a call for "A return to more businesslike trading and an end to excessive discounting."

This year, says new president Jack Webster, "The theme I have arrived at is very simple and straightforward.

"It is 'Participate and prepare for the future' — and I cordially invite all members to do just that."