TRANSPORT COSTS.

Press, Volume LXIX, Issue 20862, 23 May 1933, Page 16

TRANSPORT COSTS.

TO THE EDITOR OF TUB VRE3S. Sir, —The Farmers' Union has been holding its annual conference, and as usual has warned the Government that it will not tolerate any further restrictions on motor transport. The following is an extract from a statement made in the House of Representatives by a late Minister for Transport: "The New Zealand Parliament, in passing the Transport Act, affirmed the principle of rationalised conditions, subject to State regulation. Parliament considered that the enormous economic loss taking place at present left no alternative but to introduce new regulations at the earliest possible date. The capital invested on transport facilities in New Zealand amounted to approximately £220,000,000, and the annual cost of operating land transport alone totalled £40,000,000. The capacity of the country to pay this amount had to

be measured by the income derived from national production, which was estimated to yield for 1930-1931 approximately. £97,000,000. There was no room for doubt that far too great a proportion of the national income was being absorbed by expenditure on land transport. This expenditure constituted a very wide field for effecting economies which were urgently required to restore the economic equilibrium." It was apparent, said the Minister, that the rehabilitation of the Dominion's financial position was definitely dependent on a material reduction in transport costs. Immediate steps, therefore, had to be taken to put the existing system on a sound basis. Since the above statement was made the national income has fallen still lower, but it is doubtful whether transport costs have been reduced to any great extent. It would be interesting if the practical men comprising the Farmers' Union would state whether, in their opinion, this country can, in these times, afford to spend approximately half the national income on land transport, or if not, by (what means this enormous cost should be reduced. The total annual interest bill on all public and private debt was estimated at £24.000,000. This amount has been reduced by legislation by 20 per cent. The Farmers' Union is very insistent that interest on mortgages on land should be further reduced, one delegate suggesting 2 per cent. I would like just to ask what is their opinion with regard to the far greatec amount. Does the business of this country really necessitate the exnenditure of anything aporoaching £44,000,000 on land transDort? In considering the auestion of transport the fact should be kept in mind that the petrol used to propel the road transport comes mainly from America. the country that bv its poh'cv of selling to all the rest of the world, while refusing to take goods or services in payment, has disorganised tho wholf financial system, thereby bringing about the stpt.e of affairs nrevailing e' present. That £44.000.000 seem? to me a considerable sum and the reduction of it seems to demand attention. —Yours, etc., P.Y.W. May 22, 1933.