TRANSPORT REFORM

Grey River Argus, 7 October 1936, Page 5

TRANSPORT REFORM

IMPORTANT CHANGES Competition Cut Down NO 3 AUTHORITY’S OUTLINE. (Per Press Association). C'HRJSTCHURGTI, October 6. Far-reaching changes in 'he transport svstem of the Dominion are already under way. They involve amalgamations. purchases by the Railways Department, and full revision of existing licenses, all of which will be done under the direction of the Transport Department, through the Transport Licensing Authorities stationed in each of the tour main centres. Air. T. 11. Langford, the authority for ihe No. 3 District, has just completed a tour of h’-s area, extending over Canterbury, Alarlborough, Nelson (and the West Coast, and. in deseribling yesterday the progress made, he -a.d that already agreements were being reached between transport firms, farmers and business men on means, of improving conditions. The whole idea was to eliminate the eut-tliroa; competition that had existed for so 'ong. and by setting about it in a determined manner the Department expected to do much for the trausporoperators and users -throughout th' countiv.

One’of the most important of the plans of the Department. Air. Langford said, was that transport lieenws. which lapsed last Alay, should be renewed, when approved, for a further three years instead of the usual term of one year. This would give greater stability to the industry and make for the better development of it. A 30-mile limit was to be enforced for operators whose transport businesses ran parallel with the railways. If a carrier competed for this'distance with the trains his license would be extended only to Alay, 1937. Within that time he would be given the opportunity to confer with the Railway Department in an endeavour to arrange for the sale of the business to the Government. To give the operator the necessary protection the Transport Licensing Authority for his district would arbitrate, Thi*, Air. Langford said, was part of the Government’s policy of doing- away with uneconomic competition. So far the parties concerned had shown no objection to the scheme. In future the Post ami Telegraph Department would discontinue its practice of calling at regular periods for tenders for the carriage of mail. Arrangements would be made for the department to renew existing contracts where the service given was suitable and staisfactorv. By this means- price cutting in submitting tenders would be eliminated and other undesirable features done away with. Arrangements had also been made for the Post and Telegraph Department to make increases in its payments, where warranted, to mail contractors who had been affected bv the recent legislation governing the hours of work and the payment of wages.

TRANSPORTER'S ASSOCIATIONS Air. Langford said that the chief outcome of his tour through Canterbury, Alarlborough, Nelson, and West land was the formation of associations of transport operators. Everywhere there had been support for these organisations, and the plans of the department were being received enthusiastically by the parties involved. These associations, lie said, had been instructed to meet the farmers and oilier users of the transport facilities, and arrive al a. satisfactory scale ol charges. Already a schedule acceptable to all parties had been prepared in Kaikoura, _ and similar schedules were being prepared in Blenheim, Nelson Greymouth, and Ashburton. A’erv I'ttli- dii'li-ulty had been met with in arriving at these schedules. A\ here transport operators would not join the associations they would be required to observe the scale of charges drawn up by the associations, Air Langford said. It was found when the schedules were prejiared that some increases m the charges were necessary, but tins was generally accepted lay the farmers and other users, as competition had forced prices down to an uneconomic level.

Amalgamations were also being arranged. and the operators thn- absorbed were, being given consideration. These amalgamations were essent'al in the rationalising of the system. One of particular interest in Christchurch had been made yesterday, when one operator providing a passenger service to Belfast bought the business of anol her. It was the object of the department to arrange and assist in negotiating such amalgamations. The transport authorities would have access to the private files of the various operators and where two competed uneconomicalv the most efficient would be advised to negotiate .for the purchase of the business of the other.

In its progress towards bringing the whole transport system of the Dominion under the control of the Transport Department the Government had made an important step by its announcement that all towns of 6000 populat'on and less would be brought under the Transport: Licensing Act. Mr. Langford said. This would increase the number of vehicles under the control of the Transport Department by approximately 33 1-3 per cent. UlFmntelv it was intended 'hat the bigger towns and the cnies should be bi'i tight into line. Under the present system, carriers hi various count ry districts opera ted in areas specially allotted to them He produced a plan of the Ashbur-m country showing -the present districts of various carrying firms, overlapping one another until the confusion was hopeless. It was intended, he said, to allow the majority of the operators to work to the full limit of the boundaries of the countries in which they had iheir headquarters and thus avoid confusion.

A type of carrier known as the onciliary operator, using the road ostensibly for the carriage of his own goods, had caused eonsideral.de trouble. These men had used their stains aancillary users as a, guise under which they carried on a business and they would now be brought within the scope of the. Act. ’There would be. similar tightening of the regulation governing the issue o! temporary licenses by Postmasters. The Postmasters had given their full co-operation in the past, and they would do so again.