TRANSPORT CONTROL.

Auckland Star, Volume LIX, Issue 108, 9 May 1928, Page 8

TRANSPORT CONTROL.

BOARD HOT JUSTIFIED. OPINION OF CITY COUNCIL. UNRESTRICTED COMPETITION. DELETION OF EXTRAVAGANT SERVICES. The Auckland City Council considers there is no justification for the setting up of a Transport Board, or any otliei authority to assume control of its trari. services, according to Mr. J. A. C. Allurn, chairman of the Tramways Committee, who commenced his evidence before the Transport Commission yesterday afternoon. The only argument that could be suggested in favour of the proposed board, pointed out Mr. Allum, was that all per.sons using the transport system would have representation upon the board controlling the whole of the transport district. He maintained, however, that the representation was unnecessary, and may well he ineffective. "The Only Policy." "The policy which the council lias pursued is the only one that any body controlling transport could adopt, and the city can only view with alarm any proposal which is calculated to deprive its present area, comprising the bulk ot the population and the material wealth of the transport district, of the preponderance of power to which its importance entitles it," he added. "Should it lie thought desirable that such representation should be given, the cou.r suggests that it can be obtained by the creation of a greater Auckland." Referring to the efforts cf the council to maintain an efficient transport service, Mr. Allum said that until 1024 it was admitted that the system had reached a very high state of efficiency, both financially and otherwise. An unfair aspect of the unrestricted motor bus competition that commenced in April of that year was that while the tnimwavs maintained one-third of. the roadway along which they ran and paid rates t.i the respective loeal bodies, their competitors at that tirtie paid only a heavy traffic fee. none of which was receiver l by the Tramways Department. Furthermore, the competition arrested the council's policy of development, and had prevented certain improvements being effected, including reductions in fares. An effort was made tot meet the competition by providing omnibus services and by increasing the tramway facilities to an extent that was unjustified b> the traffic offering. As these means fancd, explained Mr. Allum, the City Conncil joined with other loeal bodies owning transport undertakings In urging Parliament to nla<v restrictions 011 the outside competition bv legislation. The only alternative was a fight between the respective interests, which must have resulted in extinguishing the privatelyowned omnibuses, and seriously crippling the various tramway undertakings. "Government Interference Justified." "While I have always held that Government interference with trade should be reduced to a minimum, this is one of the occasions on which a departure from that principle was justified," said Mr. Allum. "1 am satisfied that the obtaining of legislation (the Motor Omnibus Act) was a wise move on the part of the various councils, and'a statesmanlike act on the part of the Government. Its repeal to-day would be a. retrograde step ana would not be in the best interests of the whole community." Commenting upon the provisions of the Act that compelled local authorities to take over privately-owned competing services, Mr. Allum claimed that so far as Auckland was concerned the compensation payments made were generous. Tha main difficulty of the council was that it was saddled with a nhmber of services thai were hopelessly unprofitable. The trouble was increased when the Court decreed that it must take over the G.O.C. services running to Avondale and beyond, although it had no desire to do so. Having been compelled to take the buses over, however, the council now claimed the right to control transport in the areas affected, subject to the accepted obligation to provide such services as were warranted by the traffic and which had prospects of reasonable financial success. The loss on these services was so great that, if the council continued them as it conducted its own tramway services, which were then running on a profitable basis, they would have been badly crippled. Mr. Allum further intimated that hostility from the outer districts as a result of the cessation of services which had been running prior to the passing of the Act, was also a bugbear to the council. Policy of Protection. The policy of the council was to porvide transport, on condition that the return bore a reasonable relation to the cost incurred, but it was claimed that as no unsound position could continue, it was the council's duty to protect the travelling public from the harmful results of uneconomic transport facilities promoted by inexperienced parties, often with little financial strength. Owing to the relatively low density of population in Auckland it was inevitable that some areas must wait for passenger transport, while in the more densely populated areas it Was only practicable to provide services along the main thoroughfares. After dealing with the unsuccessful attempt of the council to revert to the penny fare system. Mr. Allum said that the present scale of fares which was the old one with slight modifications, showed a satisfactory financial result. Touching on the defeat of the tramway extension loan proposals, which involved the expenditure of £500,000, he said that the council was still of the opinion that the works proposed, together with extensions of the Mount Albert route to Avondale were essential, and should be put in hand as early as possible. While the proposals were submitted en bloc without consideration for any particular district, either in or out of the city area, the council acted in the best interests of the undertaking. Further Legialattoa Wanted. The council now suggested as a safeguard for the interests of the outer districts, that legislation somewhat similar to that recommended by the Water Commission should be passed so that it could raise money for extensions, where recommended by the Public Works Department and approved by the local Government Loans Board/without the £ kin « • p°»- , „ ™t* Council claims that by takthe trßmw *y* >n 1919, when „ i&SSSStX'?

the transport undertaking in a capable, efficient and sound manner, dealing justly with all parties concerned," continued Mr. Allum. "The council maintains that extravagant and unnecessary services shall not be provided because the provision of any such services result in impairing the efficiency of the whole transport undertaking. It is fitting to fav that the council has used all the profits of the undertaking to develop the undertaking itself. The City Council further states that its policy of tramway development is not only in the best interests of the travelling public, but also gives valuable support to the national hvdro-clcctric schemes." To-day's Evidence. Evidence regarding conferences with representatives of suburban local bodies on various phases of the transport problem was given by Mr. J. A. C. Allum, chairman of the Tramway Committee cl" the City Council, when the Commission resumed this morning. He said that an application for a license had been refused by the No. 1 licensing authority because an applicant who desired to establish a service with a fleet of 12 buses between the city and outside districts, would have been placed in a permanent position in the area concerned and his license could not be subsequently revoked except on account of some irregularity in the running. Mr. Meredith asked the witness to be very definite, as the reason was a most important consideration, to which Mr. Allum replied that the service proposed was neither necessary nor desirable. Mr. J. Stanton, who was examining witness, said that the council did not wish to sanction a permanent service, pending the commission's inquiry. Mr. Meredith (to the chairman): You will notice how easily counsel slips into calling the licensing authority the city council. Mr. Stanton: The council is the licensing authority. It is equally correct to refer to it as such, but it is not the final authority when it comes to granting licenses. Reports dealing with the acquisition of privately-owned buses, the allowance for depreciation, and other aspects of the problem created by bus competition were read by witness. The money for the purchse of the buses, had been obtained wholly from the revenue account. (Proceeding.)