EXEMPTION FROM 30-MILE RESTRICTION REFUSED

Press, Volume XCVI, Issue 28429, 8 November 1957, Page 11

EXEMPTION FROM 30-MILE RESTRICTION REFUSED

Although the Springburn branch line was operating at a substantial loss, rail traffic travelling from it on the main line to Christchurch would add to main line revenue, and would help to reduce the over-all loss on the whole South Island system by spreading the fixed costs over more units, said counsel (Mr L. C. Brown) at the No. 9 Transport Licensing Authority’s sitting in. Christchurch yesterday. Before the Authority (Mr J. A. Bretherton) was an application by Webbs Transport, Ltd., for exemption from the 30-mile restriction to enable it to carry sand for Fletcher Industries, Ltd., from Cavendish to Riccarton. The applicant’s evidence had been heard at previous sittings of the authority. Mr J. B. Weir appeared in support of the application, and Mr Brown opposed it for the Railways Department. The application was dismissed Basil Douglas Elder, a commercial agent for the Railways Department, said in evidence that the sand travelled 24 miles on the Springburn branch line and 55 miles on the main line, so its effect on main line traffic would have to be taken into consideration. South Island railways showed a loss of £1,176,317 for the year ended March 31, Elder said. The loss was partly offset by a profit of £989,008 in the North Island, but there was a net loss of £187.309 for the whole system. It was essential, in the public interest, that all possible unit traffic be retained, he said. If the application was granted Fletcher Industries, Ltd., would make an annual saving of £1350. For the three months, July. August and September, revenue from the Springburn line was £789. “Our loss will not stop at this, however, as the remaining sandpit operator in the area, who rails approximately 500 tons of sand to Christchurch annually, has said quite definitely that he will also apply for a licence if this application succeeds. “Our need to retain this traffic is greater than that of Fletcher Industries, Ltd., Elder said. “They are operating on a profit. We are not.” “This argument represents the difference between a company trying to absorb increasing costs and a Government Department stoically and commendably trying to uphold an unreal policy on a line running at an operational loss we can only guess at,’’ Mr Weir said. “Not one person has been called by the Minister of Railways to indicate any opposition whatever in the Mount Somers district to the closing of this line. “There is no ground on which the railways can invoke the preference of the legislature,’’ he said. The Authority said that the Railways Department did not have to show that the line was operating at a profit. “I agree that the branch line is part of the whole system, and I think the argument regarding branch lines as a factor in main line revenue is a proper one, which I should bear in mind.’’ Fletcher Industries was a large company with a turnover of more than £300.000 a year, and a saving to it of £1350 annually was not sufficient to outweigh the relation of the cartage of sand on the Springburn line to the whole South Island system, the Authority said. 30-mile Exemption Seven firms were granted exemption from the 30-mile restriction to enable them to transport their own goods. T. E. Elliott and Company (Mr H. W. Hunter), were granted exemption from the 30-mile restriction for the carriage of equipment to reading contracts. The Authority granted N.Z. Breweries. Ltd's application for an amendment to its goods service licence to permit operation nf an additional beer tanker. The

new tanker will be exempt from the 30-mile restriction. A Christchurch baking firm. Stacey and Hawker. Ltd., was granted an amendment to its goods service licence to permit the operation of a three-ton truck with exemption from the 30-mile restriction, to deliver bread in Christchurch, Darfield, Sheffield. Springfield, Coalgate, Hororata and Glentunnel. Exemption from the 30-mile restriction to allow it to carry tractors and farm machinery to shows and demonstrations organised for farmers was granted to the Canterbury Tractor Company, Ltd. A further application for exemption to enable the company to cart equipment and materials for constructing prefabricated farm buildings was refused. Birds Eye (N.Z.), Ltd., for whom Mr C. Stone, of Wellington, appeared was granted exemption from the 30-mile restriction to carry its own quick-frozen foods. R. G. Rollo, Ltd., was granted an amendment to its licence to allow it to provide two trailers for collecting scrap metal, old machinery and used batteries. The trailers will be exempted from the 30-mile restriction, on the condition that any surplus scrap metal is sent by rail. The Fletcher Steel and Engineering Company, Ltd. (Mr A. C. Perry) was exempted from the 30-mile restriction to enable it to carry its own tools and welding plants to and from contracting jobs. Bus Schedule Changes Minor changes in two New Zealand Railways Road Services bus schedules were approved. The services affected are the daily 9.15 a.m. bus from Christchurch to Ashburton, and the 7.30 a.m. bus from Timaru to Ashburton on Fridays. Arrival and departure times will not be affected. Licences Revoked On the applications of the following firms, the Authority revoked Iheir goods service licences: —J. Tait. Ltd.. 219 Moorhouse ave; Madill and Smeed, Ltd., Tuakau; G. J. Rond and Son. Ltd., 242 Ferry road: Edward Arthur Wright, 483 Tuam street.