ROAD TRANSPORT

Ashburton Guardian, Volume 60, Issue 252, 1 August 1940, Page 6

ROAD TRANSPORT

THE QUESTION OF MERGER.

ZONING OF OPERATIONS.

GOVERNMENT'S FUTURE POLICY. (Per Press Association),. . WELLINGTON, This Day. The future policy in connection with public roacl and freight transports in the Dominion was dealt with in a, statement by the Minister of Transport (the Hon. R. Semple) to-day. Tho Minister emphasised the need for conserving every gallon of petrol because of the uncertainty of future supplies. The Government’s policy was to have goods carried by railways in preference to motor trucks where this could be done without seriously interfering with national production. As already announced, steps had been taken to eliminate wasteful competition with railways over distances in excess of 30 miles and steps were also being taken to eliminate wasteful duplication and overlapping among pri-vately-owned trucks. The owners of many of these trucks had co-operated by zoning and adjusting their delivery services, and substantial sayings in petrol had been made. The Government now asked that public carriers reorganise themselves to overcome the obvious disadvantages of many small independent units. In order that the general policy of largescale operation may be developed, the Government suggested the zoning of operations, the formation of central depots and the formation of merger companies. In connection with the mergers it might be found undesirable in some cases to embrace the whole of the carriers in any given area jn onfe single company, but. satisfactory results might be obtained by mergers of specialised operators! such as shingle and gravel carriers.