HIGH TRANSPORT COST

Evening Star, Issue 21637, 5 February 1934, Page 8

HIGH TRANSPORT COST

ECONOMY THROUGH CO-ORDINATION NEW BOARD TO BE APPOINTED [Special to the ‘ Star.’] WELLINGTON, February 5. Within the next few weeks there will be an important development in the handling of the transport problem in the dominion by the appointment of the Transport Co-ordination Board, which will supersede the Central Licensing Board and the Transport Appeal Board. This is the further step in the movement to reduce the tremendously high cost of transport in New Zealand. Owing to much duplication and overlapping, and the heavy capital sunk in equipment now obsolete, it is officially estimated that £44 out of every £IOO of national income is required to meet the community’s bill for transport. This proportion, which has always been heavy, has increased of recent years because the gross weight of commodities lias risen, while the prices realised for them have declined to a ruinous point. Thus the “ overhead ” of transport has become increasingly burdensome, though with adequate planning to economcially utilise the various forms of transport without wasteful competition and duplication of services, the net cost to the community can be brought down to a point within its capacity to pay. This is the problem on which the new Transport Co-ordina-tion Board will be called on to advise the Government. It will comprise three members, who must not be State servants, and its main function, as indicated in the Transport Law Amendment Act of last session, will be as follows ; “ On its own initiative, or as directed by the Minister of Transport, to hold such inquiries or make such investigations as it or the Minister deems necessary, and report to the Government the result of such inquiries, with such recommendations as it thinks fit for the purpose of securing the improvement, co-ordination, and development, and better regulation and control of all means of, and facilities for transport, and all matters incidental thereto.” PROGRESS TOWARDS CO-ORDINA-TION. For several years the dominion has been steadily moving towards the ideal of the most effective use of its transport facilities. First the road passenger services were subjected to regulation, the public being assured of regular services at reasonable cost, while excessive competition was reduced. The next step was the regulation of road transport of goods with the same ideals. This is in the experimental stage, licenses having been granted to all the road services in operation. When the time comes for their renewal in June next the controlling authorities can have regard to the factors of national importance, and if necessary make conditions similar to those operating in connection with road passenger services. It is thought that there will be little or no need for any elimination process, because the stress of hard times has already put out of business most of the services which had. no economic value, and no prospect of making fair profit. . . If the statements of the Minister of Transport can be taken as the indication of the new board’s policy, the ideal will be to utilise all economic forms of transport by a system of co-ordination, without showing any predisposition ill favour of any particular kind of transport. The aim would be, not to secure business for any particular transport agency, bijt to provide for the community a service in the cheapest and most effective way. A similar body which has been functioning in Victoria dealt with the railways, which are State owned, and recommended that the standard of service that should be provided by the railways should be specified by the controlling authority in any case where road competition is withdrawn or restrained by action of authority. , . , . The Central Licensing Board which is shortly to be superseded by the new body, comprises Sir Stephen Allen and Mr "H. B. S. Johnstone (Waimate); and the Transport Appeal Board has consisted of Mr Justice Frazer, Mr 1. Jordan (representing local authorities), and Mr L. Alderton (nominated by motor transport interests). The new legislation, which is operatiye immediately the Government appoints the Transport Co-ordination Board, contemplates that appeals may be heard by the new body, and that the Munster of Transport may appoint any qualified person to be the sole central licensing authority. The new scheme, national in character, does not interfere with the four metropolitan authorities nor the ten district licensing authorities.