STATE PURCHASE

Auckland Star, Volume LXIX, Issue 221, 26 September 1938, Page 9

STATE PURCHASE

"TAKEN OVER"

FIFTY SERVICES. ROAD MOTOR FLEETS. CO-ORDINATION THE AIM. PRWATB ENTERPRISE'S PART. "Motor services in New Zealand have Tv*ti talcm over by the State only for the purposes of co-ordination, and only whore this could not be achieved in any other more suitable way," savn the Minister of Transport, the Hon. R. Semple, in a statement on transport conditions in Vew Zealand, following the publication of a series of articles on various phnscs of transport published in the "Auckland Star." "f heve followed the series with great intercut," states the Minister, "and I want to congratulate the editor and the writer of the nr< ides. They have rendered it very useful service to the public , of the Dominion. The articles have set forth the* salient points in the freight •transport services in Auckland Province in a concise and very readable manner. nnd have also shown the ramifications «f the transport services in relation to the whole Held of industry and trade." State Purchase of Road Fleets. Discussing the purchase of road service* by the (iovernment. the Minister ■tates thnt over a few route-;, rail in ting from the four main cities, toad transport, had been allowed to develop in the Jong-dint a nee -field, which wns efficiently served by the railways. These services were quite profitable to their owners, and as business units were thoroughly efficient. They hud been established in the heyday of unregulated competition, and were hauling some freights thnt could be efficiently handled by the railways. There were n!*o other classes of freights for which rond transport provided the most efficient service. As the railways represented thfl investment of public ca"pitnl which hnd to he paid for whet icr the railways were used or not. ami as there was a clear balance of public good in favour of using the railways wherever they could give a service reawonebly comparable with road transport, the fJovernment set about coordinating these services. Increasing Efficiency. "It was soon clear that so long as the road and rail services were under different ownerships little progress could be made," says the Minister. "Tt was, therefor* decided to buy out the 60-odd long-distance road services affected ho that they might be operated as complementary unite with the railways. "It hae been mid in certain quarters that thie buying out of these ">O-odd long-distance services was a. preliminary step in the direction of the Government taking over a>ll motor transport services. This is quite incorrect. Private enterprise in peculiarly suited to the operation of motor transport, particularly in rural areas, and the policy of the Government has been to increase ite efficiency. I think it will be universally admitted that the industry is at the present time more efficient and prosperous than K ever has been. Motor services have been, taken over by the State only for purpose* of co-ordination and only where this could not be achieved in any other more suitable way." Wfcm Railways art Superior. The Minister claims that the Labour Government has been more active in the field of transport than any other Government in history in New Zealand. He states that railways are being built in those districts where the actual and potential volume of production and trade are "crying aloud" for reliable and cheap means of transportation, and declares that for relatively long-distance transport of bulky freights associated with the primary industries, the railway is acknowledged to be the most efficient form of land transport. "Roads have been improved and Drought into line with the need* of modern motor transport on a scale unprecedented in our history," he continues. "At the same time the large-scale development of ground facilities for .air transport has been followed by a remarkable and healthy development of commercial air lines." Co-ordination Efforts. "Cofnciden tally with this development and expansion in transport facilities the Government has pursued a far-reaching policy of co-ordination aimed at promoting the operation of each form of transport in the spheres of greatest economic and social advantage. Labour and operating conditions in the road transport industry have been improved and 'brought up to parity with those existing in the older forms of transport, and competition is now generally on a fair and healthy basis. Motor transport has been freed of the meticulous area restrictions which were imposed on it tinder the previous Government and is now able .to operate with the maximum of flexibility."