LICENCE FOR EDUCATIONAL TOURS REFUSED

Press, Volume CII, Issue 30125, 8 May 1963, Page 9

LICENCE FOR EDUCATIONAL TOURS REFUSED

An application by Midland Motorways Services, Ltd. (Mr W. F. Brown), for a new continuous passenger service licence to run educational tours throughout the South Island from schools and colleges within a 10-mile radius of the company’s Canterbury depots has been refused by the No. 9 Transport Licensing Authority (Mr J. S. Haywood) in a reserved decision.

The application was heard on March 29 and was opposed by the Minister of Railways (Mr F. D. Daly), the Mount Cook and Southern Lakes Tourist Company, Ltd. (Mr M. C. Gresson), Days Motors, Ltd., and Mr G R. Davis (Mr R. A. Young). On the second day's hearing Mr J. G. Hutchison appeared in objection for the Christchurch Transport Board. The service would be one with considerable merit in several respects, and as a commercial proposition did the company management credit, said the authority. However, the far-reaching effects of such a service on route services and contract carriage of parties caused him anxious consideration.

“I do not accept that the demand as alleged by the company is new business. My view is supported by the evidence of the applicant’s own witnesses who told of trips and many tours in the past quite evidently performed under contract or as tours.

“Mr Young strongly criticised the nature of the application as being revolutionary in all respects and contrary to the spirit of the act. He said the evidence was generated by the applicant through touting and advertising. “In spite of my admiration for the company’s undoubted efficiency I must accept that the application is revolutionary. The canvassing and advertising are admirable and quite proper commercially, but very doubtful practices where transport licensing is involved.”

He accepted Mr Hutchison’s submission that the Christchurch Transport Board would be in a vulnerable position at off-peak periods

and week-ends when a grant of the application would give the applicant a tremendous advantage over the board. “Unless passenger service licensees no longer subscribe to the. provisions and principles of existing legislation, and there is not any indication that such is the case, this application must fail.

“Indeed. I believe the applicant adheres to the principle of adequate protection for route operators. If I were persuaded to grant the licence sought precedent would flow from such a grant, thus changing the whole system, possibly a legislative matter rather than a transport licensing one.

“My decision is that the application is refused upon the wide grounds of public interest.”