Sawmill refused carrying licence

Press, 16 August 1980, Page 11

Sawmill refused carrying licence

Greymouth Reporter

A new continuous goods service licence sought by a Kokatahi sawmill to carry building timber to job sites in Christchurch has been refused by the No. 8 Transport Licensing Authority (Mr D. L. Hogan) at a. sitting in Greymouth. The application was by W. E. Whiley and Company, Ltd. Mr L. J. Roper said that the company ran a sawmill but was having difficulty in disposing of some lines. It had begun advertising in Canterbury and to gain maximum benefit for itself and possible customers wanted to transport the goods.

Arthur Wallace Hibbs, a director of the company, said that it was having difficulty in selling building lines, such as timber suitable for framing. Because of the advertising the company had received orders and was selling at a lower price.

By delivering with the company’s own vehicle, the cost of taking the timber to the sites of builders in Canterbury was $27.50 a

cubic metre, which was less than was charged by the railways. The company wanted .to sell the "seconds” in a maximum 7 cubic , metre loads. Most of the mill’s output would still be railed to Canterbury. To Mr R. V. Boyd, for the Railways Department, he said he’ did not know how other mills on the West Coast disposed of their seconds. He had already taken some timber to Christchurch, and admitted that he had done so without the necessary licence. Asked how he could substantiate a running cost of only 32c a kilometre, Mr Hibbs said he backloaded with hay. To Mr D. L. Carruthers, who appeared for Trans West Freighters, Ltd, and the Road Carriers' Association, he said he knew of other transport operators who handled timber against the rail restrictions. Re-examined by Mr Roper, he said his company was independent and was not tied up with any outlets.

Mr Boyd said it was not a function of the authority

to give a licence to compete with other people. The applicant had carted illegally, and had used other carriers illegally. The authority was being asked to make'the railway line between the Coast and: Canterbury more- uneco? nomic.

William Patrick O’Donnell, timber checker for the Railways Department 'at Greymouth, said he visited all mills at least twice a year. Whiley’s mill was small; but of similar size to about seven others. All the mills would have lowergrade timber, and disposed of it through outlets. To.Mr Roper, he said that it was very .competitive in that they were “all chasing markets.”

The authority said that the public ■. interest was paramount, and there was no evidence produced of customer demand. The railways system on the West Coast was losing $6.5 million, 1 arid in ; addition, it was desirable that people should, corrie" before the authority with "clean hands” in making applications.