RAILWAY TARIFF

Dominion, Volume 32, Issue 233, 30 June 1939, Page 6

RAILWAY TARIFF

Simplified System To

Operate

GENERAL GOODS

Benefit For Secondary

Industries

The simplified railways tariff, embodying a revised scale of charges for general goods, to which reference has recently been, made in the Press, will be brought into operation on Saturday, announced the Minister of Railways, .Mr. Sullivan, last night. “The main feature of the simplified tariff is that it introduces a system of rating that has long been pressed for by commercial interests by reducing the number of classes for general merchandise from four to two,” the Minister said. “This reduction in the number of classes has had the effect of bringing the railway tariff more into line "with the requirements of presentdav trading conditions and incidentally stabilizes the rates on a lower average level. Removal of Anomalies. “By stabilizing the rates in this way many inequalities and anomalies have been automatically removed. Unfortunately, the conditions obtaining in the transport industry during the past decade have prevented the stabilization of the tariff along the lines just referred to, as the various scales of charges have had to be adjusted from time to time to counteract the effect of intensive and uneconomic road competition. “This in turn produced a lack of balance in the transport costs for similar services as between the different trading centres. In some instances, too, trading interests have benefited by what has been a fortuitous reduction in transport costs because of this acute competition. While the position so created was naturally availed of by those who were so fortunately placed as to be able to take advantage of these highly competitive rates, opposing interests in other areas did not enjoy the same advantages because of the absence of what was really ‘cut-throat’ competition. “The simplification of the tariff and the stabilization of rates will in certain cases involve the removal of local rates. Though this will bring about an increase in freight charges on merchandise between certain points, the increase will, very largely if not entirely,'be offset by the general appli-. cation of the lower standard rates. “Simply stated, goods previously carried at the-two highest rates, namely, ‘A’ and ‘B’ will in future he carried at the next lower rate, namely, ‘C,’ and this position, generally speaking, will obtain throughout New Zealand. Effect of Stabilization. “For the purpose of comparison the following table will give an indication of the effect of the stabilization of the general merchandise rates: —

“Though the new tariff benefits ordinary merchandise goods as indicated, there are, of course, certain articles of a light, bulky or exceptional nature, and goods which require special handling or transport, which will, continue to bear a somewhat higher rate than class ‘C.’ Benefit To Industry. ‘iSecondary industries in particular,” said Mr. Sullivan, “will benefit materially from the operation of the new freight schedules which are so based as to facilitate the wide-range distribution of their products. In view of the present and prospective developments in the field of secondary production it is satisfactory to record that principals of important manufacturing industries have expressed their approval of the intended adjustments, as have many chambers of commerce and local bodies. ‘‘l may add,” concluded Mr. Sullivan, “that what is being done is in line with the' most advanced thought in transport rating in other countries, and I believe that producers and the business community alike will welcome this new and equitable rearrangement of the railway tariff.”

Present rate New rate a ton . a ton. Claes "C” Class Class (IncludDistance “A” “.B” ing A & B). Miles. s. d. s. d. s. d. ■ 30 ...* 10 10 26 3 22 6 60 .... 55 9 47 3 40 6 100 .... 76 0 63 6 51 9 200 .... 106 10 85 5 07 6 300 .... 132 6 102 0 80 fl 400 .... 158 2 114 10 93 3