ROAD GOODS SERVICES

Evening Star, Issue 22630, 23 April 1937, Page 13

ROAD GOODS SERVICES

ARRANGEMENTS FDR GOVERNMENT PURCHASE NEGOTIATION OFFICERS APPOINTED [Pee United Press Association.] WELLINGTON, April 22. Arrangements for tho acquisition by the Government of road goods services competing with tho railways over long distances were announced to-night by tho Minister of Transport (the Hon. 11. Semple). The machinery for determining the amount of compensation to be paid will involve the appointment of two purchase officers to negotiate with the road operators for the taking over of their services, as well as that of a special tribunal to report to the Minister. When the present Government assumed office, Mr Semple said, it made an exhaustive investigation into the whole transport problem, and decided that where road services engaged _in the carriage of goods were competing with the railways for distances of 30 miles and over these services should, in the public interest, * gradually be taken over by the Government. It was clear that under a single ownership tho road and rail services could be co-ordinated so that each service could be developed in its sphere of maximum usefulness, having regard to transport and tho requirements of industry and trade and the national burden of transport costs. In the original legislation passed by the previous Government there was power to refuse licenses to these competing services and any other services where it was found necessary and desirable in the public interest to do so. There was no provision for compensation, nor was compensation paid in those cases where renewals of licenses were refused under the legislation referred to. Acting on the principle, the State should not act harshly toward any of its citizens, tho Labour Government had decided that reasonable compensation should be paid in cases where it was found desirable in the public interest for the Government to take over the services. The first step in achieving single ownership on competitive routes was taken recently, •when four district transport licensing authorities, after careful consideration, granted short-dated licenses expiring on May 81, 1937, to certain road services, and at the same time requested that negotiations should be entered into between the operators and the Railway Department with a view to the latter taking over the services. In order to give effect to the Government’s policy of single ownership. Cabinet had now decided, in view of the difficulties that had arisen, to set up the following machinery to make recommendations regarding the amount of compensation to be paid.

Two purchase officers are to be appointed, one from the Public Works Department and one representing the Railway Department, to negotiate with road operators for the taking over of their services. These officers will report the results of their negotiations to a special tribunal to be appointed under section 11 of the Transport Licensing Amendment Act, 193 d. The tribunal will consist of an independent chairman to be appointed by Cabinet, a representative of the road transport interests, and a representative of the Railway Department. In cases where an agreement has been reached between the purchasing officers and a road operator the tribunal will consider the report and submit a recommendation to Cabinet through the Minister of Transport. In cases where there has been a failure to agree the tribunal will hear both parties at public sittings and report its findings to the Minister.

The Government, said the Minister, would not pay anything by way of compensation for a monopoly value of a license as such, but outside of that the Government would pay a' fair price for services taken over. “The Government,” Mr Semple added, “ appreciates the convenience that certain of these road services*are to the public generally and to business people -in particular. _ Where, therefore, either a train service or the nature of a road business may be'such as to justify a continuance of the road service, either wholly or in part, the policy of the Government will ho to operate such service as may be necessary in the public interest. Before arriving at these decisions I have been in constant touch with the Minister of Railways (Mr Sullivan), who is in complete agreement with the principles herein set out.'”