MOTOR SERVICES.

Auckland Star, Volume LXI, Issue 27, 1 February 1930, Page 11

MOTOR SERVICES.

COMPULSORY ACQUISITION. PROPOSALS IPf BRITAIN. COMPENSATION PROBLEM. (By Telegraph.—Owe Correspondent.) WELLINGTON, Friday. Tlic report of the British Royal Coinmission and legislation introduced by the British Government are of special interest in view of the proposals for the regulation of motor transport which were withdrawn by the New Zealand Government at the closc of the last 533sion of Parliament on the understanding that they will be revived when Parliament meets again this year. ' The report from Britain contains proposals regarding compensation in the event of compulsory acquisition of a private motor service, which was one of the lately debated points of Mr Veitch's bill, last year. The private proprietor owns eertaii rolling stock and plant.' He also owns £ license issued annually. He cannot rut without the license. The licensing authority that issues these motor trafli< licenses may be itself an owner of traffii services running in competition witl the private proprietor. If the local body as licensing authority, refuses to renev the license of the private proprietor, or the ground that his service is competitive with a publicly-owned, servicc (municipal or State), the proprietor is entitled to compensation for his rolling stock and plant. But the existing law, the Motor Omnibus Traffic Act, does not allow for compensatory payment lor goodwill. i Question of Goodwill. The New "L.e of Mr. Veitch's bill ■it the Parliamentary inqmiy a few -irro Mr John 0 Shea, on behalf ot°thc association, said Mr Veitch's comnegation clause proposed to add to the existing section the following words: "Together with such amount, if any, as is agreed upon by the parties or as is considered reasonable by the C'onipen-

sation Court as compensation for the loss suffered by the claimant by reason of the refusal of the licensing authority to renew his license." Mr. O'Shea declared that the use of this goodwill addition would prevent a local body from, taking over a service. According to the way in which some Compensation Courts acted, it would be possible under the amendment to capitalise a private proprietor's interest at 5 or 10 per cent and make purchase unprofitable. Compensation Clause. In reply, Mr. Veitch put to the Parliamentary Committee the injustice-of paying mere plant value for a service, which, after three years of pioneering losses, had just begun to show a profit. It should be added here,that, after the words quoted by Mr. O'Shea, the following sentence occurs in Mr. Veitch's bill:' "In determining the amount of such compensation, the claimant shall not be regarded as having enjoyed any exclusive or preferential or privilege with respect to.the conduct of a motor omnibus service on any route or routes." In support of . the bill it is contended that the compensation clause is a fair compromise—it does not cut off the private proprietor with bare plant, value only, nor on the other hand does it confer on him a power to hold the community to ransom for monopoly value ■ attaching to a terminable license.