RANGATIRA FARES UP

Press, Volume CXIV, Issue 33442, 25 January 1974, Page 2

RANGATIRA FARES UP

The Government last night announced the lifting of the freeze on the Union Steam Ship Company’s interisland passenger and freight charges; and soon afterwards the company announced an immediate increase of 20 per cent in passenger and car freight fares in the Rangatira.

The freeze, imposed on August 10, was lifted at midnight, the Minister of Trade and Industry (Mr Freer) announced in a statement reported by the N.Z.P.A.

The Price Tribunal recommended in November that the company should no longer be required to absorb its substantial cost increases, as it had been required to do under the price freeze.

Mr Freer said the Government had taken the view that any alterations should be deferred until after the main holiday period, because an increase before Christmas would have affected holiday makers.

But the company was not

free to adjust its charges to whatever level it liked. These would be related to the limits set by the Price Tribunal, Mr Freer said.

Later, the company’s general manager (Mr B. S. Cole) said in a statement that the company was very pleased to learn that the Government had lifted the freeze. The deferment of the increase authorised by the Price Tribunal had meant a very substantial loss of revenue to the company. “Steps will be taken to bring into force immediately the new rates that have been authorised by the tribunal,” Mr Cole said. The new fare structures would be announced today.