RAILWAYS AND SHIPPING

Greymouth Evening Star, 23 July 1945, Page 8

RAILWAYS AND SHIPPING

COMMITTEE’S REPORT. WELLINGTON, July 23. The report of the Rail and Coastal Shipping Committee was released today by the Minister of Transport (Mr O’Brien). The Committee was appointed to make inquiries generally regarding the competition between railways and coastal shipping, and the desirability of controlling competition in the national interest. The committee found, that there was widespread competition between rail and shipping services, particularly in North Auckland and Bay of Plenty districts. It also existed to some extent along the lower eastern and western coasts of the North Island, and on the eastern coast of the South Island. The report states that the competition usually takes the form of struggle for more frequent and efficient service, and has become intense where the volume of freight offering is substantial, and is spread uniformly over a given period. As competition led to lower transport charges, there was generally a desire in the districts concerned for as many forms of transport as possible. The effect of competition was to increase attention to customers and reduce charges. In several cases, the shipping services had been unable to carry on at the lower rates, and had gone off the route affected or out of business altogether. The committee considered that no restrictions should be imposed on one form of transport merely for the purpose of benefiting some other form of transport. Public interest called for service at the lowest possible charges, consistent with adequate maintenance and provision of modern facilities. The interest of national and Empire defence were also of vital consideration. The committee found no evidence that the public required regulation as a protection against exorbitant charges. The Committee considered that unregulated competition between the railways and coastal shipping might be as great a public evil as unregulated monopoly because it. produced instability of rates harmful to the industry and trade. It had led to unfair discriminations to shippers of freight, it tended to undermine the financial structure of both Railways and shipping services, and tended to keeping industries for maintaining equipment in line with niodern requirements. Road and air transport would tend to increase competition. The committee considered it essential in the national interest to maintain the railways and coastal shipping in healthy condition and consequently competition should be controlled. The simplest and most effective control would be to provide an independent judicial authority on all special, as distinct from standard rates, with power to determine the matter in the light of.national interests. The committee recommended that a tribunal should consist of three members, the Chairman to be a Supreme Court Judge, or independent person of legal experience, one member to be nominated by the Shipowners’ Federation and the other by the Minister of Railways, all to be appointed by the Minister ol transport. , . The Committee also made recoinmendations regarding the operation of the Tribunal and suggested that the whole procedure be embodied m legislation. The report includes a statement by the Naval Secretary, emphasising the importance of maintaining a fleet of coastal ships.