TRANSPORT RATES

Press, Volume LXXXII, Issue 24815, 4 March 1946, Page 2

TRANSPORT RATES

Sir, —In a recent statement explaining why the already exorbitant price of tyres had been further increased, the Hon. D. G. Sullivan said that transport rates had been increased by 4 per cent, in rural areas and by 5 per cent, in urban areas. As an operator of licensed vehicles for the Public Works Department, I would like to bring to the Minister’s attention the fact that there has been no increase in rates in the area in which I operate. Also I would be interested to hear why, for those lucky enough to be granted the increase, the rate is 1 per cent, higher for the urban operator, when the rural operator’s costs are so much higher in all departments. Petrol and oil always cost him more, also freight charges; and he is usually much further from a wellequipped garage than the urban operator.—Yours, etc., J. DENNEHY. Haast, February 15, 1946. [The Minister of Industries and Commerce (the Hon. D. G. Sullivan) says: “The general increase of 4 per cent, (rural) and 5 per cent, (urban) in rates schedules granted by the Goods Service Charges Tribunal, was to cover the general increase in award wages granted in the middle of last year. A comprehensive survey of transport costs taken out over a period by the Transport Department shows that wages form a much greater percentage of the total operating costs in the case of urban firms than in the case of rural firms. As the increased rates were made to cover wages costs only, the other items mentioned by the correspondent are not relevant. The increases applied to. all town and country freight schedules but did not apply to contracts. In the latter case, the operator may apply to the Goods Service Charges Tribunal for a revision of a contract, provided both parties to the contract are in agreement, or where the operator is able to show that the continuation of the contract would involve him in undue hardship.”]