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Tuesday, 20 September 1960


Mr JONES - Thank you, Mr. Temporary Chairman. It is obvious that the honorable member for Lilley (Mr. Wight) does not want to listen to what I have to say about the Government's failure to curtail monopolies.

Ace Tyre Service, the organization with which I am dealing at the moment, is still disregarding the directions of the tire monopoly in Australia to-day - a monopoly formed by the Hardie, Dunlop, Goodyear and Olympic companies. Ace Tyre Service is disregarding the instructions of the monopoly and is still advertising that the general public may have tires retreaded at a discount of 25 per cent. The point is that despite this discount the firm's business has not increased at all.

I have received a letter from Mr. Howarth, the manager of Ace Tyre Service. I have not sufficient time to give the committee the whole of its contents. Briefly, Mr. Howarth states that he approached one of the firm's former clients and advised him that retreads were available at 30 per cent, less than the trade price. Mr. Howarth knew that this man was having his tires retreaded by a subsidiary of the four major tire companies. Mr. Howarth pointed out to him that Ace Tyre Service was still prepared to retread tires for him at the trade price less 30 per cent., although he could1 get a discount of only 17½ per cent, from the subsidiary of the tire companies under the agreement in operation. The former client rejected the firm's offer.

Does not this clearly indicate that the tire manufacturers, which form a monopoly, are using this agreement to suppress the independent tire traders? In my district, there are only two of these independent traders. The tire manufacturers are doing everything in their power by enforcing these terms of trade to suppress the independent traders so that the manufacturers themselves will be able to enjoy a monopoly not only of the manufacture of tires and tubes but also of the distribution of these goods and of the retreading of tires - a monopoly which will be exercised through their subsidiary companies. They want to derive all the profits from the rubber industry.

On 16th September, the Sydney "Daily Telegraph " reported a statement by Mr. L. V. Winslow, managing director of the Goodyear Tyre and Rubber Company (Australia) Limited in these terms -

Price-cutting could not affect the manufacturers - it only hurts other retailers.

Is it not so much humbug for the tire companies to suggest that there is competition - that there are in the rubber industry people other than the four major tire manufacturers and their subsidiaries? Is not this humbug pure and simple when they know as well as we do. that they have bought out more than 80 per cent, of the present retailers of both tires and tubes and also of the retreaders? The major companies have bought the other interests out and have fixed prices. They went even further.


The TEMPORARY CHAIRMAN -

Order! The honorable member's time has expired.







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