’lron bridge’ in freight rates?

Press, 31 August 1977, Page 3

’lron bridge’ in freight rates?

PA Wellington The Department of Trade and Industry is investigating the possibility of an “iron bridge” concept for interisland freight rates, according to the Minister of Transport (Mr McLachlan) yesterday.

He was replying to a Parliamentary question from Sir Basil Arthur (Lab., Tiraaru) who asked if this concept — under which the , transportation of freight using the railways in the North and South Islands and the Cook Strait rail ferries would be treated as a single journey for charging purposes — would be investigated with a view to its implementation.

Mr McLachlan said that the “iron bridge” concept had been advocated several times in the past, even during the term of the last Labour Government, which had adopted a limited al-

ternative scheme under which the North and South Island rail portions of a journey were treated as a single journey and an additional charge made for ! transport across Cook Strait. “The Government is fully aware of the need to foster regional development in the South Island and this has been recognised in the 1977 Budget which provides for the introduction of a differential between northbound and south-bound inter-island freight charges in the next freight-rate review,” the Minister said. “I understand from the Minister of Regional Development (Mr Gair) that details of this proposal which will be designed with the object of assisting South Island industries supplying i North Island markets, have i not yet been finalised bull the matter is now being studied by the department,” he I said.