Purchase Tax Cuts Employment
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MEARLY 100 employees of ("lily Motors, Ltd., Wolverhampton, have been given notice, as a result of the ending of the night shift in the machine shop, last Friday, which has been in operation. for 14 years. This action follows the imposition of purchase tax on commercial vehicles, which. it was stated,. had some hearing on the decision to end the shift. -As many machine operators as possible will be absorbed into the day shift.
According to Major H. M. Weir, sales manager of Jensen Motors, Ltd., West Bromwich, purchase tax has caused sales to slow down. "We are not standing off men at the moment." he said, 'but some orders have been _cancelled." Purchase tax on one of the concern's large pantechnicons was £600. added Major Weir.
Following cancellation of orders, Thompson Bros. (Bilston), Ltd., has closed its paint shop and employees have been found work in painting buildings. Shop stewards have protested to the local Member of Parliament concerning the purchase tax on goods vehicles. The managing director, Mr. Howard Thompson, said that he expected smaller orders in future.
Component manufacturers have also been affected by the tax. Mr. 'Sidney Duckitt, managing director of Moss Gear Co., Ltd., Birmingham, said that one order for axles, representing 2 per cent. of the concern's production, had been cancelled.