CO-ORDINATION PLAN

Press, Volume LXXIV, Issue 22465, 28 July 1938, Page 5

CO-ORDINATION PLAN

* ROAD SERVICES PROGRESS OUTLINED IN REPORT “SMALL FIRM REMAINS PREDOMINANT” [From Our Parliamentary Reporter.] WELLINGTON, July 27. “There is a growing tendency, reflected to a certain degree in the large increase in the numbers of applications for transfer of licences, to Awards the amalgamation of services,” states the annual report of the Transport Department, tabled in Parliament to-day. “Operators, instead of applying for additional vehicle authorities, have been 'buying existing licensed services which in many cases are closely related to their on. These amalgamations, requiring the approval of the Licensing Authorities, have for their objective the reduction of empty mileage and the increase of effective mileage “The Licensing Authorities have devoted a great deal of time to the problem of the internal organisation of the industry because of the close relationship between this matter and the general efficiency of the motor-haulage business. Encouragement has been given to co-operation in the form of associations having for their objective the improvement of the general efficiency of the operators as a whole. However, in spite of any tendency towards amalgamations and larger scale operating units, the small firm is still the predominant form of organisation. “A further trend is exemplified in the recent merger of certain route services in the Nelson district. The following extract from the annual report of the No. 3 Transport Licensing Authority (Mr T. H, Langford) sets out the position in this instance;— “ 'After reviewing the whole situation I met the carriers in the area through their assbeiation, and placed the position, as I saw it, before them. 1 was aware that many operators were on the point of bankruptcy, and I as sured them that unless immediate ra tionalisation took place the outcome for them would *bo serious indeed. I suggested that some method to eliminate duplication of traffic shenld be introduced, and believed ;h.v the best method to adopt would be wholesale amalgamation, with the operators in control. . . . the route operators in Blenheim. Motueka, and the northern oortion of the West Coast were deter •mined to proceed, and on March 17 1938, a company was registered, known as Transport (Nelson'. Ltd., with a capital of £50.000. winch covered th-* operation of 14 operators with 53 vehicle authorities. The hoadouarters of the company will bo NelsutK and depots will be er ec'.n) at Havelock. Nelson. Tasman and Inr.ngahua. A.i immediate reduction in freight rates will occur, and on fruit alone will represent a «avint» to the grower of at least £7OO per annum on the MotuekaInangahua section. The ultimate saving in general "goods freight between Nelson-Blenheim will be enormous, and the reduction of vehicles, which is automatic with rationalisation, will not only reduce road costs, but will lessen on the roads in that area. The" establishment of a depot at Inangahua and the further amalgamation with Gibbs Transport. Ltd., will considerably reduce the number of heavy vehicles operating in the dangerous western portion of the Buffer Gorge. In the South Westland area a further company was formed some months ago. known as Fahey’s Transport, Ltd. Twenty-one vehicles were originally employed by the group, and to-day 14 are doing the work more "effectively and at a lower cost to the consumer.’ “A third type of amalgamation takes the form of a co-operative endeavour, each operator maintaining his separate individuality, but working through a central organisation (usually n limitodliabilitv company in which the operators all hold shares), which aims at planning the work to reduce empty mileage. The central organisation also handles the accounts of the operators and distributes the net revenue on the work done.” Passenger Transport Rationalisation Important reference is also made to the co-ordination of passenger services in the Canterbury, Nelson, and Marlborough areas. Savings to the travelling public between Greymouth and Westport, consequent on the reduction of fares, are estimated to amount annually to £2OOO, while the reduction in vehicle mileage, following the union of Messrs Newman Bros.. Ltd.. and Rink Taxis Company. Ltd., is set down as being more than 150,000 miles The reduction of fares on the Kaiapoi run to 0.62 d a passenger mile is stated to have been such that a worker residing at Belfast can travel to Christchurch more cheaply than one who is resident at Sumner and who uses the tram. “The acquisition of those services, the No. 3 Licensing Authority is quoted as saying, “has meant the total extinction of idle vehicle-hours, and, as you will readily realise, this is the only road to lower costs in this or dny other transport business. These facts not only support the idea that coordination is essential, but that where efficient service is given and low fares and freight rates are charged, increased public patronage is automatic; and, further, that the public very definitely prefer to use the road motor for short distances rather than any other form of transport.” Fixation of Charges “Although the transport legislation gives the Licensing Authorities the power to fix the charges made by road operators who came under their control, the general policy up till recently,” states the report, "has been to allow the charges to be determined by fair competition. In a few instances the operators and their customers have amicably agreed among themselves on schedules of charges, but in no cases have the schedules been made conditions of the licences. “The present policy is to leave the matter as far as possible in the hands of those most concerned—viz., the road transport operators, and the trading and farming communities. If neither of these parties ask to have the rates fixed under the provisions of the transport legislation, no action is being taken. In the event, however, of the operators showing to the Licensing Authorities that uneconomic rates are threatening the efficiency -of the industry and the standard of life of those engaged in it, arrangements will be made to bring the carriers and the users of their services together with a view to arriving at mutually satisfactory schedules of rates. “Any agreed schedules will then be considered by the appropriate Licensing Authorities at public hearings specially held for the purpose. These hearings will be fully advertised, and all interested parties will have every opportunity of submitting their representations. If the Licensing Authorities are then satisfied that it is in the public interest to do so, they will make it a condition of each licence In the areas affected that the schedules of charges must be observed. In cases where the interested parties are unable to agree, the licensing authorities will hold public sittings to hear re-,

presentations from all interested parties and will then proceed to draw up schedules of charges based on these representations ' and any information that may be available to them. The public using the road transport services may make representations to the licensing authorities in cases where it may be felt that competition is not. fully effective, and the charges arc too high. The procedure that has been referred to will then be followed out. The licensing authorities are now engaged in considering representations they have received regarding the fixation of charges.”