'BUS REGULATIONS

Evening Post, Volume CXII, Issue 18, 21 July 1926, Page 10

'BUS REGULATIONS

EVIDENCE BEFORE SELECT COMMITTEE

CASE FOR WELLINGTON PROPRIETORS

STATED BY MR. W. G. M'DONALD

The Select Committee of the House of Representatives set up to consider the Motor Omnibus Regulations, held its first public meeting to-day for the purpose of hearing evidence for and against •the petitions recently presented to Parliament. Evidence of the keen interest which is being shown in the- matter was provided by the fact that B Committee Room, in tho old Library wing of Parliament Buildings, was uncomfortably crowded when proceedings commenced. So much was this the case that an adjournment to the Joint Committee Room was made, after the Committee had been sitting for a quarter of an hour. All parts of New Zealand were represented, including all the main municipal authorities.

prictors, limiting the cover on a>y one bus to from £15,000 to £20,000. Ho thought that if the insurance question had been left to the proprietors they could have fixed, it up satisfactorily. "But, don't think that the insurance clause is going to put us out of business," said Mr, M'Donald. "You aro going to load us with very heavy premiums, but wo are going to carry on." In a brief reference to the Appeal Board, Mr. M'Donald said that ho did not think tho board should bo weighted so heavily against the proprietors as by four to one. Replying to questions by Mr. Tapley, Mr. M'Donald said that if there were to be regulations he thought fhey should apply to New Zealand as a whole. Mr. Sidey; "What is the position of the Board of Trade?" Mr. M'Donald; "Actually, the Board of Trade, is out of existence, but the powers were handed over to the Minister." He added that the requirements of the Board of Trade Act had not been complied with so far as the regulations were concerned. Mr. MacMillan: "Do you think that relief would be granted if the licensing authority had the right to grant a license for a longer term than one year Mr. M'Donald: "Yes, I think they should have power to grant a license for a period of five years." QUESTIONS OF FINANCE. In reply to Mr. Fraser, the witness said that they would have had no objection to the regulations if there had been a, complete judicial inquiry. Mr. Fraser: "What is the value of your plant at present?" Witness: "I should say that they are of very little value at present." Mr. Fraser: "That is under the regulations. What if the regulations did not exist?" Mr. M'Donald said that he thought tho buses would bo worth about £750 each. Discussing the question of purchase by the City Council of his company's buses, tho witness said that he had undertaken to allow the City Council to secure a full statement of the company's financial position, provided the Mayor would state that ho would recommend tL council to purchase tho company's fleet. Mr. Fraser: "Is your company paying its way!"—" Yes." "Are you prepared to submit a statement showing that'"—"Yes, if the committee desires it." Mr. M'Donald admitted that the buses could not cope with the rush hours, unless they were given a, monopoly. He estimated that 500 buses would be required in order to carry out the work efficiently. Answering Mr. Potter, the witness said that his impression was that the tramway authorities were consulted before the regulations wore framed. The bus people, however, were not consulted. The buses had not prejudicially affected the tramway systems in New Zealand. Mr. Dickson: "Do you moan to say that the buses have not affected the Auckland trams?" Mr. M'Donald: "I say they have not." Replying to Mr. Forbes, Mr. M'Donald said that tlie general view of the bus proprietors was that if the regulations were not imposed they would agree not te cut tram fares. Personally, he did not agree with that view. In concluding his evidence, Mr. M'Donald said that his petition was supported by fourteen or fifteen thousand people, and he would like an opportunity to call evidence expressing the views of the public. At the conclusion of Mr. M'Donald's evidence, the committeo adjourned until 10 o'clock to-morrow morning, when consideration will be given to an Auckland petition.

Mr. E. P. Loe, the chairman of the I Committeo, presided, and the following I members wero present: The Hon. K. S. .Williams, Messrs, V. H. Potter, M. J. Savage, P. Fraser, C. E. MacMillan, G. W. Forbes, J. Dickson, T. K. Sidey, E. ; J. Howard, H. L. Tapley, and H Holland. The chairman apologised for the absenco of the • Prime Minister (the Right Hon. J. G. Coates) on account of ; indisposition. Mr. P. Fraser said that there seemed to be a goueral recognition that regulations wore nocessary, and he suggested that evidence should, be confined to the main points at issue. The chairman said that he did not intend to prevent a free discussion of the whole matter, which was of great public interest. There were three petitions lodged, and ho took it that the evidence would be for and against the allegations contained in those petitions. William George Mac Donald presented the case on behalf of the Wellington Motor Bus proprietors. Bus proprietors throughout New Zealand had a general objection to tho regulations. The chairman asked if it was thought that the regulations applied to the : wholo of New Zealand. Witness: "Yes." The Chairman: "I am told that they do not apply in all parts of New Zealand." Witness: "Well, they might have left out a paddock or two." It was explained on behalf of the Public Works Department that the regulations applied to the four main cities, and those towns where there were • municipal transport enterprises. The witness said that if the regula- : tiong were not general some potent reason should be given why they should j apply to some centres only. The Board ' of Trade Act had not been designed to give the Government power to issue re- ' gulations of such a description as the Motor Bus Regulations. The Act de- i eignedly gave great powers to the , Board of Trade, and he ventured to say , that no body had received such wide s powers as those which had been con- j ferred on tho Board of Trade. It was . understood, however, that those powers ( were to be used judicially and only j after a full inquiry. As far as he knew there had been no inquiry be- j fore the bus regulations were issued, despite the fact that the transport in- i dustry was one of the most import- < ant industries in tho Dominion. A BOMBSHELL. j "The regulations came upon us as , a bombshell," declared Mr. M'Donald. - Mr. Tapley: "There was a confer- , ence." Witness: "But, my dear Mr. Tap- t , ley, that was not an inquiry by any \ means." He had been foolish enough i to invest most of his savings in the 1 transport industry, said Mr. M'Don- . aid, and he had thought that a full in- 1 quiry would, have been held, at which an opportunity would be given to the i bus prpprietors to express their views J and objections to the proposed regulations. Referring to the conference i which had been held Mr. M'Donald said that at the conference the bus pro- f prietors were numerically weak. They 1 were asked to swallow the draft of the t proposed regulations lock, stock, and i barrel. The bus proprietors criticised i the regulations, but when they were finally issued it was found that very ] little alteration had been made, If the ] purpose of the regulations was the con- ] trol of the traffic, the bus proprietors i would have been ready, and were - ready now, to assist in drafting regulations. He thought that the timo was < ripe for regulations controlling the '. whole system of transport in New . Zealand. WITH SINISTER DESIGN. It was felt that the regulations had been conceived with the sinister design of putting the bus people out of business. If the local authorities wanted to exerciso a monopoly over the transport service of the cities or elsewhere they should do so. But they had not stated that that was their desire. He personally was opposed to a monopoly, as he thought it was not in tho best interests of tho community. There ■were three clauses in tho regulations as originally published that would constitute a municipal monopoly of transport. One was that relating to the licensing authority. Under the regulations the licensing authority would be quite within its rights in refusing a license, unless the council came to the conclusion that their own trams were not giving the desired service. As long as clause 3 remained, their industry would be in a precarious position, as the effect of clause 3 was to hand their business over to their competitors. He had not lost sight of the fact that there had been amendments, but he still thought that the effect would be to put thorn out of business, and that Without competition. THE EXTRA TWOPENCE. The witness then wont on lo deal with the provision for the extra faro of 2d. If that had been put into effect it would have put him off the roads, but as a matter of fact that provision had never been carried out. Since then tho clause dealing with the 2d fare had been amended, and now it was left to the licensing authority to say whether the extra fare should be imposed or not. The bus proprietors were not satisfied with tho regulations even now they had been altered. He did not think that clause 10 (dealing with the fares to be charged), even as amended, had anything to do with the control of traffic. They had to apply for a license each year, and, they were jfaced with the prospect of having a different body of men to deal with every two years. To-day they had a licensing authority which did not impose the 2d extra fare, but to-morrow they might have to deal with a body which favoured the imposition of the extra fare. THE INSURANCE CLAUSES. Mr. M'Donald complained of tho unreasonableness of the regulation regarding insurance, although tho motor-bus proprietors did not object to provision being made for insurance. Although it was unreasonable, the insurance clause would not have the effect of putting the proprietors out of business. The regulations meant that his company, the Wellington and Suburban Bus Company, would have to carry a cover of over a quarter of a million pounds. At the conference a floating policy had been suggested by the pro-