Move north predicted

Press, 26 August 1978, Page 17

Move north predicted

PA Wellington More Government intervention in the transport of people and goods in New Zealand is predicted as a result of major increases in the price of transport fuels forecast for the 1980’s. The prediction of a significant increase in Government intervention is contained in a Commission for the Environment report entitled “Transport 1984” which looks at the implications of the rising cost of fuels for transport. i The report, says that, because of the expected sharp ' rise in oil prices in the 1980 s, a decline in use of private motor vehicles can be expected. More industries will be concentrated in the northern half of the North Island, at the expense of other regions, as fuel prices rise, and there

would be less need to undertake the construction of new reading to cater for the historically high rate of growth of motor vehicle use in New Zealand. Major oil price increase will also have a comparatively harsher effect on people on lower incomes and in urban areas, leading to increased use of public transport. Public transport would need to be expanded by central and local government, requiring Government financial assistance to metropolitan bus fleets, and greater subsidies would be needed to keep fares at reasonable levels, the forecast said. Investigation should be made into the establishment of small scale “nonoffensive” industries in residential areas, to bring jobs closer to workers, and reduce transport needs.

I A strong , case for special I assistance to farmers could be made for private motoring needs, and extensive subsidies may be required for agricultural transport, the report says. The concentration of manufacturing industries in the northern half of the North Island would probably receive added impetus as distribution costs increased. “Growth will occur in this region at the expense of other regions. The level of regional development incentives provided by the Government may have to be substantially increased as transport fuel prices increase sharply,” the Commission for the Environment says.