Firm’s Service ‘Uneconomic’

Press, Volume CVI, Issue 31076, 3 June 1966, Page 14

Firm’s Service ‘Uneconomic’

(N.Z. Press Association) BLENHEIM, June 1. Car Haulaways, (N.Z.) Ltd., was forcing the Railways into cut-throat competition by providing an uneconomic service, Mr B. J. A. Cathro told the No. 9 Transport Licensing Authority (Mr J. S; Haywood) in Blenheim today.

The Authority is hearing an application by Car Haulaways for eight vehicle authorities to transport new cars between Picton and Christchurch.

Mr Cathro, appearing for the Railways, said the company’s drive-away car service had worked at a loss for 17 months. Counsel for Car Haulaways (Mr R. Stacey) objected to Mr Cathro’s remarks, calling them “window dressing and misleading.” The firm today amended Its application further by limiting it to the transport of new cars and light utility vehicles. Earlier Mr Stacey had amended the application to exclude the Nos. 10 and 11

transport districts, limit it to the Nos. 8 and 9 districts and reduce it from 12 vehicle authorities to eight.

Mr Stacey asked for the amendment today after hearing submissions by Mr D.

Hunter, of Nelson, who appeared for Nelson Transport Ltd. No public interest would be served by granting the application, Mr Hunter said. He expressed doubts about the financial ability of the company, which had produced no balance sheet, and had a paidup capital of only £l5OO against a turnover of more than £300,000. The company did not appear to be equipped to cope with

adverse circumstances, he said. Objecting for Marlborough

Transport, Ltd., Mr A. A. P. Willy, of Blenheim, said the financial position of Car Haulaways depended on the good

graces of one large manufacturer.

The railways would not lose

by failing to get Car Haulaways' business for the Aramoana, said Mr P. P. Geddes, chief administration officer of the Railways. Space on the ferry was at a premium and could be used for more profitable cargo, he said.

Although the railways had excess capacity in the South Island it lost on its services there because it had to provide some which were unprofitable. Granting the licence would increase the loss, he said. The services would have to be reduced or the loss charged to the taxpayer. Mr C. R. Larsen, a consulting economist, of Auckland and a former member of the Board of Trade, said New Zealand had invested a tremendous amount of capital in roading system and it paid the community to use these to the maximum.

The roads were paid for, but the railways were built with loan money, he said.