TOWN CARRIERS

Evening Post, Volume CXXII, Issue 74, 24 September 1936, Page 10

TOWN CARRIERS

NEW CONDITIONS

VIEWS OF EMPLOYERS

RAIL COMPETITION

Proposals and recommendations to bring about co-ordination and an improvement in the general conditions in the carrying and transport industry in Wellington were today submitted to the Committee of Inquiry which is investigating the industry throughout the Dominion.

The Committee, which during the past three days has been hearing evidence in connection with the taxi business, consists of Messrs. P. M. Butler (chairman), J. Walker, and H. B. Smith.

On behalf of the Wellington General Carriers' and Customhouse and Forwarding Agents Industrial Union of Employers, Mr. J. Georgeson said that the objective of the master carriers was the elimination of wasteful competition with a view to reducing the burden on national transport costs, j and the better utilisation of the capital employed in the transport industry, as it was considered that the reduction of transport costs was most essential to a sound economic condition. It was contended that, commencing with the cities and towns, the basis of a national scheme of ■co-ordination appeared to be that the New Zealand railways should deal with the long-dis-tance haulage, while a mobile fleet of city and town carriers could deal with the short-distance cartage to and from the railways. If such a scheme was introduced in cities and towns the carriers would be enabled to work on a definite plan of feeding the railways, wharves, manufacturers, contractors, business houses, and private individuals with goods, and in no case where goods could more satisfactorily be | transported by rail should they be carried by road. EXEMPTED AREAS. The removal of the exempted areas as laid down by the Transport Licensing Act was suggested. It was submitted that the exempted area provisions allowed an opening to a very bad form of competition by leaving an open field for any class of individual to enter into business and adopt trading conditions to suit himself, which often reacted against established businesses. In such cases all that was required of these carriers was a "ply for hire" licence from a local authority upon payment of a small annual sum. Under the Municipal Corporations' Act, 1933, local authorities could impose similar restrictions to those which could be imposed under the Transport Licensing Act. Provision was made to permit local bodies fixing rates, time-tables, and also to restrict the number of .licences that may be issued. Whilst it might be held that this was a means of overcoming the difficulty of exempted areas, it was deemed that it would be more advantageous to have uniformity of control throughout the Dominion; this would be easier obtained under the Transport Licensing Act than by requesting local authorities to take advantage of the rights contained under the Municipal Corporations Act, 1933. QUALIFICATIONS FOR LICENCE. The view was expressed that if all carriers in the Dominion were required to obtain licences under the Act, the annual licence fee could be very considerably reduced, and no difficulty would exist, in arranging for the annual licence fee to include, if necessary, "ply for hire" fees, and statutory power could be given and regulations made for the distribution of the proportion of the fees amongst local authorities directly affected. It was therefore contended that all carriers should be licensed under the Transport Licensing Act, and before such licences were granted the applicants should be called upon to show: — (1) That they have the establishment and organisation necessary to conduct a sound business; (2) that they have the volume of traffic for the number of vehicles required in their business; (3) that they are financially sound; (4) that their v.chicles are kept in a proper state of efficiency. (In this connection legislation was desired requiring that all vehicles used for transport be inspected for a certificate of fitness at least twice a year); (5) that with a view to fair competition only the hours of work allowed by the various awards affecting the industry and made by the Arbitration Court should be worked. It was also suggested that if exempted areas were removed the licensing system be proceeded with, and that the hire licence of £1 per vehicle at present charged by the Wellington City Council, the Petone Borough, and Hutt Borough Councils be abolished, and one licence fee charged to cover all such charges. All carriers so licensed should be compelled to join their particular employers' union, and this body should be allowed tn recommend cartage rates. This would place all ■vrriers on the same basis and would not prove detrimental to the business community, as cartage rates would be stabilised. Carriers who did not employ drivers were not always fully aware of their actual overhead expenses, and having a slack period occasionally considered that by accepting such low rates they were helping themselves to keep going. Actually this was a foolish policy which tended to bring legitimate prices down to an unprofitable, level. As a result of past excessive competition several of the large carrying firms had a lesser number of vehicles, and were employing a lesser number of drivers than* formerly. SUFFICIENT CARRIERS. It was contended, however, that in Wellington there were sufficient carriers with adequate establishments and fully equipped transport plant to cater economically and to the satisfaction of the community, provided that some definite system of control was inaugurated. It was desired to stress the point that there should be only one licensing authority and that established under the Transport Licensing Authority. If all vehicle owners, carriers, and commercial vehicle proprietors were required to obtain a licence under the Transport Licensing Act the licensing authority would be enabled to assume control over the conditions of trading, even so far as to regulate charges. Master carriers were definitely of the opinion that thfere was a need to safeguard the carrying industry, and the machinery existed for the purpose under the Transport Licensing Act. This could be brought into operation and rendered very effective by the removal of the exempted areas.. Unless and until the exempted areas were removed by regulation there would be no means to prevent the unfair competition which might come up at any time without restriction. RAILWAY INTERFERENCE. It was held that the present competition was decidedly excessive. Railway interference was a serious problem. The railways cut the rates in such a manner that carrying companies were labouring under very heavy expenses in regard to licensing fees, maintenance, traffic regulations, cost of vehicles, and wages costs, which i made it difficult to compete. Another serious aspect was the .

owner-driver who was not under any restriction in regard to hours of employment. He cut prices to the disadvantage of the company or firm employing labour subject to a regulated number of hours and rate of wages fixed, in awards of the Arbitration Court. Some owner-drivers worked long hours and accepted payment far below what was considered reasonable by the carrying companies who were required to employ drivers and pay fair wages.

In order to obviate the competition experienced by the railways it was suggested that the Government should fix flat rates so that the rates charged would, in effect, demand the transportation by rail of all goods.

Another detrimental factor in competition with the legitimate carriers was the Post and Telegraph Department. The system adopted by the Post Office in competing with carrying firms should be regulated on a more equitable basis. Evidence was given by Arnold Hare, of Coutts Bros, and Hare, Ltd., who said he was in favour of charges being fixed by the Government. A scale o£ charges, which was fair to both the public and the carriers, was agreed upon by Wellington carriers, but within a short time price-cutting began. Therefore, only compulsory charge regulations could be effective.