Ministers’ Explanation Of Increases In Coal Freights

Press, Volume CI, Issue 29801, 18 April 1962, Page 24

Ministers’ Explanation Of Increases In Coal Freights

(New Zealand Press Association.

WELLINGTON. Apr! 17. New frejght rates had teen fixed afer long onridcrafcon of the problems of the coalmining industry and of the railways, and, in total, they tLd not represent an increase in railway freights, raid the Minister of Railways (Mr McAlpine) and the Minister of Mines (Mr Shand) in a joint statement today. In the past, in accordance with long-established tradition in the fixing of railway t remits throughout the world, the short-haul traffic had been loaded with some extra charge to subsidise the long haul. Over the years this had been in the interests both of the coalmining industry and

of the railways themselves, but new circumstances required new policies, the Ministers said. Keen competition from other fuels, particularly oil, and from road transport had made it imperative that short-haul freights be placed on a more realistic basis. Mr McAlpine said that from the point of view of his department, the decrease in Short-haul charges was essential if they were not to lose a considerable volume of traffic, and while he regretted the necessity to increase the long-haul charges, the facts were tiiat these still contained a considerable element of subsidy “I would remind complainants such as Mr C. M Richwhite, head of David Lloyd, Ltd., that the finances of the Railways Department are such that every year the taxpayer has to find considerable sums to make up the difference between railway returns and the total costs of running the railways in New Zealand,” he said. Mr Shand said he was worried about the effect of increased changes on the long hauls, but had been seriously concerned at the oompetition from oil, particularly in Auckland, where the aboli-

tion of the freight loading would, he hoped, go a long way toward preserving the position of coal in its principal markets. He was very worried about the effect of the freight ohanges on some mining areas and the possibility, which Mr Richw’hite raised, of lesing certain long-haul customers, said Mr Shand. Coals from the Reefton district for example, an important source of industrial and household coal for Christchurch would all be increased in price. “Over-all, I regard the changes as beneficial to the mining industry,” said Mr Shand The Ministers said that, in fairness to the Railways Department, it should be pointed out that ‘fre large inereases in Gisborne and Wellington quoted by Mr Richwhite were not all attributable to freight increases.

The railways charge to those two places had been raised by 10s a ton. The balance of 8s 3d in the case of Gisborne and 5s 3d in the case of Wellington, resulted from a decision of the mine-owners themselves to abolish their freight pool system.