Railways protection attacked

Press, 4 October 1982, Page 16

Railways protection attacked

PA Hamilton The president of Federated Farmers. Mr W. R. Storey, has attacked “negative and self-interested" opposition to the recently published Ministry of Transport discussion paper on land transport In an address to the Waikato branch of the Economic Society of Australia and New Zealand, in Hamilton. Mr Storey said it had been suggested by the Railwaymen’s Union that the railway work-force of 19.000 people could reduce to about 14.500 if protectionism from all rail was removed. "The fact that there are

3000 jobs possibly in jeopardy highlights the question. 'Should our most important servicing sector continue to be an employment agency for people who are not really needed, with the cost of the feather-bedding borne by the user'?" he said. Mr Storey said any doubts that had lingered with some fanners that the federation's policy of pressing for deregulation of land transport in New Zealand was anything other than soundly based would have been effectively dispelled by the howls of rage uttered by transport

industry leaders recently. "Federated Farmers has long held the belief that as part of the freeing-up of the economy, the very high degree of’ protectionism within the transport industry must be removed." Mr Storey said. "Road transport licensing was originally put into place to protect owner-operators in small trucking concerns in the pre-war period. It was also intended to give some protection to the user in terms of services provided and rates charges. “The Government is now faced with the question: ‘ls

the transport.industry finally mature enough to stand oh its own feet and can we finally let the user have some say in choosing the most efficient and cost effective means of moving goods ?" he said. Mr Storey said some ot tne arguments put up by various Railways and road transport industry leaders against any changes in the system had been remarkable ’ more for the flights of fancy indulged than for positive reasons given as to why the industry should continue to have a high level of protectionism.