FREIGHT RATE ON MOTOR SPIRIT

Press, Volume LXXIV, Issue 22354, 18 March 1938, Page 14

FREIGHT RATE ON MOTOR SPIRIT

TRANSPORT TO * WEST

COAST

AUTOMOBILE ASSOCIATION TO

SEEK REDUCTION

A decision to request' the Minister for Industries and Commerce and for Railways (the Hon. D. G. Sullivan) to make some reduction in the freight rates of motor spirit to the West Coast was made by the council of the Automobile Association, Canterbury, last evening. “I can but advise you that the charges operating in the West, Coast and Kaikoura are based on what it actually costs to transport the motor spirit,” the Minister wrote in a letter to the council. “A fairly recent adjustment of cartage rates from Christchurch to Kaikoura resulted in a reduction in that town,” he said, “and I can assure you that everything is being done to watch the position to see that the situation is not being exploited in any way by either the oil companies or cartage contractors.” The letter went on to say that so far as the West Coast was concerned a perusal of the costs incurred in transporting the motor spirit indicated that the oil companies were barely recovering such costs, and he could assure the association that in the event of there being any adjustment of freight rates, the interests of the consumers of motor spirit in the areas affected would not be lost sight of. Mr W. F. Harley (Greymouth) said he considered that the Railway Department was charging an excessively high rate. “I think it is time it was reduced by 50 per cent.,” he said. He understood that the freight was about 2]d a gallon by tank cars owned by the petrol companies. “It is time to reduce the freight so as to bring it into line with other goods,” said Mr Harley. The president (Mr H. C. Harley.): I don’t know what reply we can send, seeing that the matter is now being investigated.