POSSIBLE EFFECT OF CAR CUT

Press, Volume CVI, Issue 31153, 1 September 1966, Page 16

POSSIBLE EFFECT OF CAR CUT

The announcement that Dominion Motors, Ltd., will reduce car assembly production at its Newmarket plant, Auckland, could affect an application being heard by the No. 9 Transport Licensing Authority (Mr J. S. Haywood). .

The Authority said yesterday that the statement made by the comnany’s general manager (Mr G. Fraser) might have some influence on the proceedings. “The numbers of new cars requiring transnort will be fewer.” said the Authority. Mr Fraser said the production cuts were mainly caused by the 20 per cent cut in import licences this year. The Press Association -message said that the weekly

production would be reduced from 130 to about 100 cars. Lesser cuts would be made in the company’s other assembly plant at Panmure. The Authority is hearing an application, lodged by the Christchurch firm of E. H. Boyce and Company, Ltd., which seeks the right to start a motor-vehicle transporter service in the South Island. The hearing, which will enter its seventh day today, is being opposed by the Railways Department (Mr F. D. Daly) and Transport (Nelson) Ltd. (Mr G. S. Brockett) and Mr R. Stacey is appearing for McLennan’s Transport, Ltd., Blenheim. Car Haulaways (N.Z.) Ltd., Auckland and Wellington, has been granted observer status. On Monday the Authority ruled that a prima facie case had been established and the objectors’ evidence was given

and concluded yesterday. The managing-director of Car Haulaways (N.Z.), Ltd., Auckland and Wellington, William Matthew Bums Thomson, by authority of McLennan’s Transport Ltd., Blenheim, gave evidence on the latter company’s behalf. In cross-examination, counsel for the applicant company (Mr H. W. Hunter) alleged that Thomson’s evidence was given on his own behalf and not on behalf of McLennan’s Transport. Thomson strongly denied this. Thomson said his cpmpany and McLennan’s Transport, Ltd., operated a complementary service from Picton to Ward. Transporters were used to the limit of the 40mile licence restriction and the cars were unloaded and driven to Christchurch. “During July we paid McLennan’s £682 for cartage,” Thomson said.

To Mr Hunter, Thomson denied his company had a road transporter monopoly in the North Island but agreed that they had the only such licence. Mr Hunter: Would 'it be correct to say that your company is doing well in the North Island, in fact extraordinarily well?—That’s our luck. Mr Hunter: Your designs on the South Island are in direct conflict with Boyce’s. Last year you were prepared to absorb a loss of about £22,000 on your runaway service in your determination to stop Boyce’s getting a licence?—We offer a better service than Boyce’s and are prenared to suffer a loss. Thomson also said that insuring cargoes on road transporters was expensk'e. He admitted that last financial year his company spent £lB,OOO on premiums.