FREIGHTS RISE

Dominion, Volume 24, Issue 64, 9 December 1930, Page 11

FREIGHTS RISE

Railway Charges

MORE REVENUE SOUGHT Further Changes Made Further tariff increases for the carriage of certain classes of goods were announced by the Minister of Railways, Hon. W. A. Veitch, in a special Gazette issued last evening. Owing to the fact that the latest revisions have not all been made exactly in accordance with the recommendations of the Royal Commission, it is impossible to estimate the amount of additional annual revenue likely to accrue, although it will be considerable. With these increases and adjustments, practically the whole of the commission’s recommendations for tariff revision has been brought into effect. The chief items affected by these changes, which will operate from next Sunday, are NewZealand brown or soft coal and roaa metal for use by local bodies. Increases already enforced are expected to result in an annual increase in revenue of over £200,000. An increase in revenue totalling £65, 000 is expected from increases in the rates for the carriage of brown coal. It was originally proposed by the Railways Commission that the rate should be increased by 10 per cent, for up to 100 miles and then gradually increased up to 15 per cent, for distances up to 200 miles and a flat increase of 15 per cent beyond 200 miles. The opinion was expressed by the commission that the old rate appeared to favour long-distance traffic. Incidence of Tariff. It was decided by the Minister that before putting any increases into effect as far as the charges on this class ot freight were concerned the opinions of coalowners should be secured on the question of the incidence of the proposed in creases. A conference was held recent ly and although the total increase in revenue expected remains the same as that estimated by the commission, the increases have been rearranged. Under the new arrangement the rates will be increased by 11 per cent, up to 200 miles and gradually increased from 11 per cent, to 13 per cent, between 200 and 250 miles with a flat increase of 13 per cent, beyond 250 miles. Another important alteration relates to the removal of the concession granted on the carriage of road metal for use by local bodies. The removal of this concession was estimated by the commission to result in additional revenue to the department of £29,000 a year. In referring to this class of traffic the commission said that it could not see why the department should be called upon to carry it at a very unreinunerative rate, and it was recommended that should it. be decided to grant some concession upon the rate proposed, namely, that for bulk goods such as gravel, chaff and hay, the loss in revenue should not be borne by the department. Other alterations in the tariff are regarded by the department mainly as technical changes to give effect to minor proposals of the commission. A revision has been made in rates for goods of the produce type such as grain and potatoes. Charges on Timber. The rate on imported timber, except hardwood poles, has been reduced to the same level as that for local timber. Certain minor alterations have been made in the rates for imported coals, goods manufactured from cement and bulk goods such as gravel, chaff, hay and lime. At the present time the regulations make reference to imported goods and goods of New Zealand manufacture, different rates being charged for each. Under the new regulations no such preference is made. A change has bee.-- made in the regulation dealing with empty cases for the carriage of fruit and shooks for the manufacture of fruit cases. This, has been necessary owing to the alteration in rates for local and imported timber. At present this regulation makes provision for the carriage of New Zealand timber only, hut imported timber and New Zealand timber used in the manufacture of fruit cases will now be charged the same rate. Similarly, in accordance with the commission’s report the charges for the haulage,, handling, sorting and. transhipment of imported and local timber have been made the same, imported timber charges being higher under the present tariff.. A further amendment makes provision for an increase by 11 per cent, on brown or soft coal from the coal-producing areas north of Auckland to Opna, Onerahi. and Kaikohe.

Coal for Shipment

An increase of 10 per cent, has also been made on coal at present charged at local rates from the coal mines to Westport for shipment. Similarly in the case of coke from Granity to Westport therailage charges have been increased by 10 per cent., as also have those on coal and coal dross consigned from Conn’s Creek to Waimangaroa. At the present time there is a local rate of 7/- per ton on coal ex ship at Picton for Grovetown or Blenheim. This rate has been increased by 11 per cent. An alteration in the regulation covering the South Island main line and branches increases the local rates ou coal for shipment from the various coal mines in the Grey Valley district and Reefton to Greymouth by 10 per cent. A similar increase has been made in the case of coke, elay and bricks from Brunner to Greymouth and also on coal from Dunoldie to Rununga.