Game Firm Seeks Rail Exemption

Press, Volume CVII, Issue 31462, 31 August 1967, Page 7

Game Firm Seeks Rail Exemption

Decision on an application for extension of a goods service licence by Graham Stewart and Company (1965), Ltd., venison exporters, was reserved by the No. 9 Transport Authority (Mr J. S. Haywood).

Mr Haywood said the application involved the No. 10 and perhaps the No. 11 transport districts, and he would give his decision in writing after consulting the licensing authority in Dunedin. The application sought two additional vehicle authorities —one for a trailer—throughout the South Island for carrying aviation fuel for helicopters and aircraft, with exemption from the 40-mile rail restrictions. Submissions were made by Mr R. L. Harris, representing the Railways Department, and Mr I. White, representing the company.

Mr Harris said that the department strongly objected to the amendment to the company’s continuous goods service licence. The company used about 24,000 gallons of fuel a year. “This is a large amount and the loss of revenue to the Railways Department would be substantial,” said Mr Harris. He submitted that the public would not benefit by the amendment. Only the company would benefit The company last year made a substantial profit of $32,508. It had been said in evidence that a similar profit could be expected this year, Mr Harris said.

The Railways Department should be given the opportunity to carry this fuel and to see if it could help the company.

The department in the year ended March 31 lost $3,999,766 in the South Island. It was in the public interest that this loss be reduced. It had been shown in evidence that the Railways Department had a 12 per cent drop in tonnages in the first 11 weeks of the financial year.

Mr Harris said that for 15 months the fuel bad been carried illegally between Lyttelton and the Haast Mr Harris said that the difference in cost between rail and road transport would be only 1.9 cents a gallon of aviation fuel, or $550 a year. Mr White said the figure should be 2.63 cents. The company exported as much venison as all the other companies combined. The company supplied 15 per cent of the total German consumption.

Mr White submitted the Industry was of national importance. The overseas exchange earnings of the company were very high in comparison with the capital invested. Sales were almost exclusively outside the traditional markets, and much venison went to the European Common Market. Deer numbers had been a problem for many years. The company had reduced the number of deer, mainly in areas too remote for deer culling. The company had three Cessnas and was using four helicopters. The Cessnas were necessary to get meat from high valley passes. Mr White said that if aviation fuel were sent to four separate railheads, the profit for the railways would be negligible. But the loss to the company would be substantiaL