ROAD TRANSPORT OF GOODS

Press, Volume LXXIII, Issue 22183, 28 August 1937, Page 16

ROAD TRANSPORT OF GOODS

Single-Ownership On Principal Routes RAILWAY OFFICER'S PREDICTION (PEESS ASSOCIATION TELEGRAM.) AUCKLAND, August 27. The prediction that within 12 months the business of carrying goods between the principal cities and towns* of the Dominion will be conducted under single ownership conditions was made by Mr H. C. Couch, District Traffic Manager of the New Zealand Railways at Auckland, when applications for the renewal of goods service licences were before the No. 1 Transport Licensing Authority. Mr E. J. Phelan, the Authority, said that short-dated licences had previously been given to operators to enable the Railways Department to negotiate for the purchase of their services, and i under the. existing conditions the operators had no sense of security. He emphasised the desirability of the department expediting its negotiations for purchases, so that the fate of various services would be determined once and for all. Mr Couch suggested to the Authority that licences be renewed for a period of 12 months only in several cases. In making submissions on behalf of the Minister for Railways, Mr Couch said that, as the Authority was aware, the Government had invited a number of goods service owners to negotiate with it for the sale of their service businesses, and had set up a complete purchasing organisation for the purpose. He referred to a recent statement by the Minister for Transport, the Hon. R. Semple, on the need for the co-ordination of various transport services to eliminate the waste and reduce the cost of transport. The Minister had stated, he said, that the Government was convinced that so long as road freight services were run as small units, wholly independent of the railway freight services, little or no progress in real and effective co-ordination was possible. He also contended that the policy of single-ownership of freight road and rail services over long distance routes was based on sound economic grounds, and made it clear that the Government regarded , all transport services as a national "key" industry in the Dominion. Mr Semple had further stated that the purpose of the new policy was to make road and rail services over important long distance routes running out from the four main centres complementary rather than competitive, and to weld them into an efficient service. The main result would be a reduction in truck mileage, and wear and tear on Ihe roads, without any diminution in the standard of service offered, and businessmen might rest assured that the new policy would mean a reduction in the Dominion's national overhead and transport costs. Changes in a Year "At present," added Mr Couch, "negotiations are in train for the purchase of several services of a class to which the Minister for Transport refers and by the end of the current licensing year the position will be very different from whai it is to-day. By that time the business of carrying goods between the principal cities and towns of the Dominion will be conducted under single-ownership conditions, and this is a consideration which, it is submitted, ought to be taken into account as relevant to the present renewal of applications. "It is submitted that it is not reasonably practicable for any licensing authority to estimate the extent to which a proposed service is necessary or desirable in the public interest except so far as the present date is concerned. It is thought that even at the present date it could be shown that the continued operation of services as at present conducted is unnecessary and undesirable in the public interest. ' "Nevertheless it is conceded that as the system of goods service operations under single ownership conditions, on the principal routes is new, it is desirable to permit a service to continue to operate for a further year to the end that at the expiry of the licence the transport position on the route, or between the points affected, may be reviewed in the light of conditions obtaining at that time under the new system. Term of Licences "The term for which any licence may be granted by a licensing authority (up to a maximum of three years) lies entirely within the discretion of the licensing authority. A licence for a term of three years may not be claimed as of right by an applicant. Accordingly it is submitted that in view of the considerations outlined, applicants' licences ought not to be renewed beyond May 31, 1938." The first of the applications called was that of L. Marinovich and Sons, for whom Mr A. R. Wilson appeared. He stated that it was unusual for the Government to oppose such applications, and he wanted to know if the authority would give effect to the recommendations of the Railway Department, and not renew licences for a longer period than 12 months. Mr Phelan said he had a statement from the department before him, and he had given it serious consideration. He was endeavouring to carry out the intentions and policy of the Government, but he would like the Railways Department to deal with the present applications as urgent, and dispose of it once and for all. Each case would be dealt with on its merits, and hi the case of L. Marinovich and Sons the licence would be renewed in the same I terms as formerly, for a period of 12 months from the date of expiry of the old licence on June 1 last. "This decision will apply in your case," Mr Phelan told Mr Wilson, "and I have no doubt that it will»aDDly in other cases also." In the discussion Mr Phelan said he supposed the authority had a reasonable expectation that the Railways Department would enter into negotiations with the various operators within 12 months. He hoped 'that the department would expedite its negotiations, as operators had no sense of security while being kept in the state which had prevailed since their licences had been renewed for 12 months down to June last. IA statement by the New Zealand Road Transport Alliance on the Governmenfs transport policy is printed on page 13J i