Freight rise, but S.L better off

Press, 19 November 1977, Page 1

Freight rise, but S.L better off

Parliamentary reporter Freight rates for goods in the inter-island ferries will be increased from December 4, but the cost of moving goods from north to south will be higher. Some other Railways charges have also been increased, and tiie department’s revenue is. expected to be boosted by 11.9 per cent. The Minister of Railways (Mr McLachlan) said yesterday that the freight differential announced in the Budget would average 12.47 per cent. Rates for passengers and their motor-vehicles will also rise — by 12.5 .per cent for passengers and by between 2 and 11 per cent for vehicles. The fare for an adult

will rise from $6 to $6.75, and the rate for an Austin Allegro car will rise from $19.15 to $21.25. A Hillman Avenger will cost $2B one way, compared with $26.25 now. Railway goods rates will rise by 12.5 per cent overall and the parcels rates for both rail and Railways Road Sendees will be restructured. Instead of separate road and rail parcels rates based on a wide range of distance charges, there will be a greatly simplified scale of charges based on rates between nine specified zones. Tlie freight differentia! is to help South Island industries supplying the North Island market. “The general cargo rate in the ferries, including

loaded and empty vehicles, will be increased by 5 per cent from south to north and by 20 per cent and other road freight from north to south.” said Mr McLachlan. “This will result in a differential fate on general cargo averaging 12.47 per cent in favour of northbound consignments.” Mr McLachlan said he expected that the freight differential would also be incorporated in other shipping rates as they were reviewed. “The introduction of the freight differential does not close the door tn further consideration of the ‘iron bridge’ concept, which is under review by the Minister of Regional Development (Mr Gair)," he said,