ROAD TRANSPORT INQUIRY “Financial Advantages” From Outside Concerns

Press, Volume CX, Issue 32384, 25 August 1970, Page 18

ROAD TRANSPORT INQUIRY “Financial Advantages” From Outside Concerns

(New Zealand Press Association) WELLINGTON, August 24. Road carriers faced problems, but to make overseas interests the scapegoat might be quite incorrect, the Committee of Inquiry into overseas interests in road transport was told in Wellington today.

Mr C. I. Patterson, representing Allied Freightways, said in his final address that no evidence had been given during the inquiry which showed the company’s operations had been other than beneficial to the industry and the country as a whole.

General evidence had been given that some carriers were apprehensive of the future, but this arose more from charges in the industry rather than the extent of overseas ownership or control.

Overseas concerns had brought a direct knowledge of new methods and obvious financial advantages. Making final submissions for the New Zealand Road Carriers’ Association, Mr W. N. Sheat said trends that appeared to be developing had caused concern within the industry. But there were divergent views within the association's own membership. It did not take issue with the present overseas interests already established. It believed overseas interests should be allowed to extend and grow, but only under a suitable system of control built Into the transport licensing system.

After considering the views of its members, the Carriers’ Association made a number Of recommendations.

These included a request that special consideration be given to the availability of finance to New Zealand companies which were showing enterprise. In particular it was requested that road carriers be recognised in the category of businesses which could obtain development finance as assisting primary industry and exports. It was recommended that road carriers should be given financial encouragement and the facilities to obtain the benefits of management training and technical re-

search without feeling they bad to seek overseas investment in order to obtain these facilities.

The Carriers’ Association, asked that the Committee in-, vestigate some method to safeguard against deliberate ' under-pricing for a period to. obtain a competitive advantage.

Legislation relating to exchange control, capital issues, and control of overseas takeovers should allow for an appeal procedure, said Mr Sheat.