COASTAL SHIPPING

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

COASTAL SHIPPING

BAIL COMPETITION

RATES NOT UNECONOMIC

Allegations that uneconomic rates were- being used, by tho railways in competition with coastal shipping services are denied in the statement of the Railways Board presented to Parliament today.

"During the year representations were made to tho board by delegations representing the shipping and harbour interests," the statement says. "Thcso representations took «the form of protests against competition by the railways with coastwise shipping and tho consequent adverse effect on harbour board revenues. Almost invariably the statement was made that tho railways were- competing at uneconomic rates. "With regard to the broad question of competition, those masking the representations were unable to suggest any. formula to relieve the position. It was obviously impossible to lay down categorically that the- railways should not under any circumstances compete for traffic with coastwise shipping. Indeed, such a formula could not be effective, for the simple reason that it would ignore two very vital factors in the situation —namely, the development ofroad services, and the construction and operation of new railways through districts where coastwise shipping formerly had a virtual monopoly of the business of the district. "A conference was held between representatives from tho Railways Department and the harbour and shipping interests for the purpose of generally »reviewing the position an.d, in particular, examining rates that were alleged to be uneconomic. '' The board made it clear that it had no intention of charging uneconomic rates, and obviously it has no incentive to do so. Very little was gained from the conference, for, in the judgment of the board, it was not established that the railway rates were uneconomic The board is sympathetic to the interests of- the harbour- and shipping authorities with whom it is desirous of co-operating to the fullest practicable degree. • Competition between rail-] ways and. coastal shipping services is by no means new. It has existed practically since railways commenced to operate in-Now Zealand. The competition has, however, undoubtedly developed in intensity during recent years. This has not, as in some quarter* appears to be supposed, been due to a* policy of aggression on the part of the railway authorities directed against coastal shipping, but has been due to circumstances oveiN which the' Railways Board has had no control and of which it has boon a victim probably as much as the coastal services. In every case regarding which complaint has been made the board's policy was dictated by the obligations resting upon it in connection with the effective working of the railways. It is unfortunate that an almost phenomenal development of transport facilities has synchronised with the depression in trade and industry and a consequent substantial diminution in the quantum of transport work available. These two factors interacting have created difficulties not only for coastwise services, but also for the other services engaged in tho transport industry."