Stock transport debate warms up

Press, 28 September 1984, Page 25

Stock transport debate warms up

Sheep farmers have been strongly urged to make their own arrangements with transport companies over the charges for taking sheep to freezing works and not leave the freezing companies to deduct such payments from killing sheets. “Nothing, to my knowledge, is stopping the fanner from paying his own bills,” the meat and wool chairman of the North Canterbury Federated Farmers, Mr Dick Davison, has said. Mr Davison has sparked a row in the North Canterbury area about transport rates and it is he, along with other members of the meat and wool executive of North Canterbury Federated Farmers, who has urged farmers to take control of their own transport costs. “Write the cheques (for transport to works) yourself,” he has urged fanners, “and then the level of charges becomes a matter of negotiation between yourself and the transport company.” But the rural carrier members of the Christchurch Road Transport Association are not happy

with the approach taken by Mr Davison, accusing him of trying to dismantle the present structure of stock cartage rates.

The rural carriers have also written to the meat and wool executive of North Canterbury Federated Fanners saying they will not give a discount in cartage rates in return for the adoption of the three-day transport cycle.

Mr Davison had written to all transport operators in North Canterbury asking what discount was going to be offered in return for farmers agreeing through the federation to work towards the three-day cycle. This cycle means drafting, transport and slaughter on successive days. Mr Davison angered the Christchurch Road Transport Association by approaching its members individually instead of on an organisation to organisation level. But he told last week’s meeting of the North Canterbury meat and wool executive that he was “extraordinarily reluctant to apologise to anyone over that action.” The Road Transport

Association had a meeting of its rural carriers earlier this month and wrote back to Federated Farmers. It said that carriers were unanimous that no discount would be offered for the three-day cycle. “It will be necessary to give some reasons for what, to your organisation, will be a completely illogical decision,” said Mr Evan Williams, the executive director.

“The (three-day) concept is complete in itself, with the quid pro quo to the farmer being apparent in better stock handling and less delays at freezing works for the stock,” said Mr Williams. “No drcount which could be offered by a carrier would be sufficiently attractive to influence a farmer to change his views in favour of the changed pattern. That is, if the proposed cycle is seen to be an inconvenience to the farmer, the saving in discount would not change his mind.

“The proposition put to your executive was based on the undeniable need for a change, an improvement in the efficient use of expensive plant and the necessity

for carriers to employ drivers within the terms of the Traffic Regulations 1976, section 133. “The lean lamb quality control is expected to mean smaller drafts. This in turn will lead to more multiple pick-ups and several trips to pick up a number which in the past would have constituted a load for one truck and trailer unit.

“If the real purpose in obtaining a discount is to dismantle the present structure of stock cartage rates, then stock carriers would expect immediately to start negotiations for the payment of the real rates which would apply to Sunday cartage,” said Mr Williams. He said carriers were sensitive to the plight of their customers but had to charge “appropriate rates” or they would not survive. The demise of local stock carriers would be in no-, body’s interests, he said. “Nor will there be any argument that there is quite fierce competition between carriers. It is our firm belief that market forces will hold prices at their present levels, depending of course on what surprises the Government has in store in

increased road user charges, fuel increases and wages policies.” The meat and wool executive meeting was also presented with a circular from the Dominion transport secretary of the federation, Mr Bruce Robertson. He pointed out that mostly freezing companies deducted the cost of transport to the works and paid the transport companies on transport schedules. But with transport delicensing on June 1, 1984, schedules were to be phased out. Although the federation had argued that schedules were incompatible with delicencing, the Road Transport Association successfully lobbied for their retention for a two-year period for a “Guideline” to their members. Mr Robertson suggested that this guideline might continue to be used as a basis for setting of transport deductions from killing sheets. He argued that this was not good enough and that the best situation would be for fanners to negotiate directly with transport operators. The Road Transport Association still favoured the killing sheet deduction method because of promptness of payment, he said. Speaking at the meat and wool executive meeting, Mr Davison said the federation must be careful not to do anything to encourage transport operators to continue with a form of collective agreement on charges. The junior North Canterbury vice-president, Mr John Bayley, said that what the transport operators were proposing to do, by continuing to set rates collectively, was definitely outside the spirit of the new legislation, if not the letter. A round-up of opinion from branches in the province showed that most farmers did not feel well disposed to the three-day cycle. Mr Bayley said that the three-day cycle sort of arrangement worked well on a personal and informal basis with good liaison be-

tween farmers, drafters and operators. “We must be careful not to enter any agreement with the companies to maintain capital investment in unprofitable rigs,” he said.

A trend to smaller trucks might emerge from the lean lamb emphasis. Mr R. E. Menzies commented that it ought to be the policy of the province that farmers negotiate their own transport charges to freezing works. Because there was no formal transport schedule, freezing companies had nothing upon which to base deductions from killing sheets except what was told them by the transport operators. That was not satisfactory to the farmer, he said.

Discounts on stock cartage to works and to and from Addington were already available, despite what the transport association said.