RAIL v. ROAD

Grey River Argus, 20 February 1932, Page 4

RAIL v. ROAD

THE TRANSPORT ACT Meant to Stop Competition (Per Press Association). WELLINGTON, February 19. The attitude of the Railway Department to competitive motor road services was briefly outlined to the Central Licensing Authority to-day by Mr F. W. Aicken, who represented the Department in connection with applications made to the Board. There could be no doubt that the Transport Licensing Act was designed, and placed on the Statute Book, for the purpose of securing certain definite results, Mr Aicken said, four of which were of major importance. They were:—• (1) The securing of a considerable reduction in road costs. (2) The wiping out of the annual railway deficit, due to the wasteful competition of road services. (3) The reduction of the production costs, as affected by transport. A reduction in the cost of production would be obtained automatically by the achievement of the first and second objects. (4) The elimination of unsatisfactory and uneconomic conditions within the road transport industry itself. He added: “We do submit that, where the railway is adequately catering for the transport needs of any district, or districts, as a whole in the public interest, and road services are merely catering for a comparatively small number of individuals, the tapering off of the road service passenger mileage should commence now,” said Mr Aicken. “Also, we think it should be coupled with, where circumstances warrant, the fixation of road fares on such a basis as will carry into effect a reasonable interpretation of the subsection in the Act concerned.”