ROAD SERVICES

Evening Post, Volume CXVIII, Issue 33, 8 August 1934, Page 10

ROAD SERVICES

RAILWAY POLICY

PRECEDENT FOR OPERATION

BOARD'S- CONTENTION

Co-ordination of rail and road transport isi referred to in the statement of the Railways Board, presented to Parliament today. • Dealing with passenger services, tho board states: — "The policy of the board in connection wii.u the operation by it of road services is ' founded on what it conceives, after a careful examination of all the facts in each case, to bo the best thing; to bo done in the general interest, irhe board has not in contemplation any plan .of extensive road operations: When it appears that the public interest will be best conserved by the bivard undertaking road services in conjunction with its railway operations, the board feels that there is no inherawt reason why it should not do-so. In jfew Zealand there is ample precedent fo'.r the Railway Department operating rond services. Hitherto its activities have been confined more particularly to bus operations and to operations in connection with the collection and idelivery of goods and parcels traffic. The difference is, however, more one of degree than kind, and with changing conditions fresh methods are required, and.- fields of action may icquiro to be extended. The board belierves that the Railway Department is capable of affording a service that wiß bo. of an entirelysatisfactory nature so far as the various districts served by its road service, arc concerned, and its operation of the road services which it has undertaken will enable^ it to bring about a co-ordination between those services and the railways which will be more effective and achieved with less friction than could "have been the case with separate ownership ■of the railway and road services. GOODS SERVICES. In connection with goods services, the board has the i following comment to make: —"Applications for the renewal of. licences granted last year are now being heard b;y the Licensing Authorities, and the board is opposing the running of long-distance goods services which it beV.ieves to be operating in wasteful competition with the railways. The railways are faced withintensive competition., for general merchandise —tho more payable traffic —in every part of the Dopunion. The effect of this competition, upon the financial position is such that unless the position-is rectified through the operation of the Transport Licensing Act {he board will be coinpelle.d to consider making sonic radical changes in its rating system in districts most seriously affected. - "The significance of this fact is a matter that the board desires to cm.phasise. The board has stressed on previous occasions, particularly in connection with branch lines, that the decisions of the Licensing Authorities would have an important bearing on the board's ultimate policy regarding the operation of some of; these lines. Hence, ponding consideration of the operation of road motor /services by the Licensing Authorities,- tho 'board has deferred taking any. drastic action either to curtail services or alter charges in these cases. The board is bound •to accept the decisions of the Licensing Authorities, and if a decision is- given to liccilco road motors in competition with a railway service, which experience , has proved cannot bo operated om a payable basis having regard to t7io traffic offering from tho. district sei*ved,_ the board can only* interpret the decision as meaning that road transport and not rail transport will best maet the needs of the district in question. In such circumstances tho board would feel compelled to give serious consideration to the position thereby created. It is charged by its constitution to work tho railways economically and to, eliminate expenditure; and there can be no justification fw continuing to moot operating losses out of the public purse on any railway line which is'not essential to the transport needs of tho district which it was built to serve. It must bo obvious, therefore, that the- decision of the Licensing Authority in each case carries with it a responsibility regarding the transport needs of the district and the consequent adjustment of services other than tho road, services to an economic basis, having regard to tho decision of the authority."