New freight concessions

Press, Volume CXIII, Issue 33383, 15 November 1973, Page 14

New freight concessions

Details of the Government’s proposal to extend freight concessions to cover goods consigned through bulk forwarders were outlined last night by the Minister of Railways (Mr McGuigan). The unit rate concession would also now apply to goods carried under special Railways contracts, he told the manufacturing engineers’ group of the Canterbury Manufacturers’ Association.

As the existing scheme, for goods consigned directly through the Railways at standard rates, had not been having the widespread beneficial effect intended, the Government had decided some time ago that it should be broadened so that qualification for the concession would not depend on whether a manufacturer consigned his goods direct through the Railways or through a consolidator. The Government had decided that the most satisfactory procedure would be for manufacturers to meet their accounts in the normal way and then apply for rebates to the Department of Trade and Industry. There were different bases used by consolidators to calculate their charges, and it was impossible to introduce a relatively simple and equitable scale of

concessions to apply to consolidators’ rates, Mr McGuigan said. The rebates would relate to the net charge for the full journey from a starting point in the South Island to any North Island destination north of Porirua and Upper Hutt. Where a manufacturer arranged for a rail journey to a consolidation depot, the cost of that journey could be added to the cost of the consolidator’s account to establish the base figure for calculating the rebate. Rebates would be 9 per

cent, 9| per cent, or 10 per cent of forwarders’ freight charges, depending on whether the manufacturer was being charged for a door-to-door service, railhead to door (or door to railhead), or railhead to railhead. The percentages would be applied to the total freight cost to qualifying destinations, including the inter-island portion.

The concession rates introduced in May for traffic consigned direct with the Railways would not be disturbed. ■ Mr McGuigan said that the Minister of Trade and Industry (Mr Freer) had told him he would like administration of the scheme to be carried out in the South Island. Inquiries were being made about the availability of premises and staff in Dunedin.