DANGER IN MONOPOLY

Evening Post, Volume CXXV, Issue 17, 21 January 1938, Page 8

DANGER IN MONOPOLY

In eliminating the ua»U: and duplication in transport there is a Ipossibility that we may pass from 'one undesirable stale to another almost equally opposed to public interest. The representations made by the New Zealand Farmers' Union against the creation of transport monopolies arc therefore timely. Excessive competition, and particularly when it is-on an unfair basis, is admittedly wasteful. To eliminate this a measure of regulation is necessary. This we have advocated. But |we believe that the regulation should be mainly directed to the prevention of practices such as "skimming the cream". of traffic, and to the introduction of conditions which would result in the development of the most efficient and economical forms of transport. This cannot be secured if, for illustration, road transport runs on highways maintained at public cost (as was at one time the case) and the railways are charged for the construction and maintenance of the permanent way. We do not believe, however, that in guarding against waste it is necessary or desirable to stop all competition. Monopolies, whether public or private, are liable to be- expensive luxuries. There is not the same spur to efficiency that is found under competition. In certain conditions single ownership may appear desirable, as making the task of organisation simpler. But even, here it tends to retard progress. The monopoly is not so keenly alert to public requirements, not so eager to improve the service, and not under the same necessity to keep its charges down. As a general policy, monopoly should be rejected and where it is temporarily allow-ed there should always be the possibility 'of reintroducing competition if there are complaints of slackness.