Appeal On Transport Licensing Disallowed

Press, Volume C, Issue 29602, 26 August 1961, Page 14

Appeal On Transport Licensing Disallowed

An appeal by Webb’s Transport, Ltd., against a decision by the No. 9 Transport Licensing Authority (Mr J. S. Haywood) refusing an application for an extra vehicle authority to carry silica sand from Mount Somers to the factory of Crown Crystal Glass Ltd.. Hornby, has been disallowed by the Transport Licensing Appeal Authority (Judge Archer) in a reserved decision.

Mr C. B. Atkinson anpeared for the appellant. The respondent was the Railways Department.

Judge Archer said that an additional vehicle authority was claimed to be necessary because the glass company’s requirements were to be increased from 8200 tons of silica sand to 16.500 tons annually. By using the transport company instead of the railways the company estimated it would save £9270 a year.

Judee Archer said he had adjourned the hearing in rtebruarv until August in case the Government decided to close the Mount Somers line as being uneconomic. The line was not closed and the Railways Department considered it was a line that justified retention.

At the appeal hearing the department contended that the operational loss on the branch line for the year oriAoA March 31. 1961. 'was £2030 >mon a gross revenue of £6530.

But nn the assumption that most of the goods carried on the branch bne were also "arried on the main line, from or to Christchurch there would be an operating profit on the main line of £7OOO. Therefore, the Mount Somers line resulted in an operating profit to the railwavs of £4970 (£7OOO minus £2030).

“I have now before me more precise and detailed information as to the Moimt Somers line than was available in 1957 when the first decision on this application was made." he added “Nevertheless. I am in some doubt as to the validity of the Railwavs’ Department’s contention that the loss of £2030 on the branch line may

be turned into a profit of £4970 by crediting the branch line with £7OOO out of the operating profit of the main line. “I still find it difficult to believe that it is to the financial benefit of the department to keep the Mount Somers line open, but even so I would have thought that the determining factor in deciding whether the branch line should be retained is whether it is reasonably needed by the people it puroor«c to serve.

“The department has no knowledge that there would be local opposition to the closing of the line, and was not able to secure the support of local farmers’ organisations in its opposition to the application.” Judge Archer said that while the department’s case was not entirelv convincing there were certain aspects of the appellant’s case which came to his notice during the hearing Py switching its vehicle authorities it was possible for the appellant company to carry nearly all the additional sand required bv the glass company. Thus the prospect of the railways carrying an extra 8300 tons of sand a year was remote. In an earlier . decision emphasis was laid on the financial difficulties of Crown Crystal Glass, Ltd. This was not the case now, for the company now appeared to he well established on a pro-fit-earning basis, said Judge Archer,