Freight inquiry not justified -forwarders

Press, 12 September 1980, Page 22

Freight inquiry not justified -forwarders

PA Wellington The Freight Forwarding Association has said it does not consider another inquiry into its industry justified on any reasonable grounds. It told the Commission of Inquiry into freight-for-warding that it had accepted a request last year to set up the commission to ensure that a ban on the industry would be lifted. Several branches of the National Union of Railwaymen had imposed a ban for nearly three weeks as a protest against the withdrawal of the Silver Star express. The union had alleged that forwarders were skimming off Railways profits. Presenting submissions to the. commission, the association said the industry had been the subject of three inquiries in the last 10 years. The last one, in 1975, had concluded that the freight-for-warding industry was beneficial to the Railways and the nation generally. It considered that nothing had occurred since the report to justify any different conclusions being reached. The association, was concerned about the length of time and cost which could be involved in the inquiry. It gave notice it would make an

application under the Commissions of Inquiry Act, 1908, where the commission has the power to award costs. The arrangements with the Railways . must be profitable to the department, the association said. It calculated that revenue from rail forwarding to the year ended June 30, 1980, was $64 million.

The industry had invested more than $63 million in equipment and facilities. If the Railways was to handle the work done by forwarders, it would need an investment of at least that amount.

The General Manager of Railways (Mr T. M. Hayward) also told the commission why he had been unable to agree with the principle of setting up the inquiry. He said he was concerned that some railwaymen would confront other railwaymen in public during the hearing.