ROAD SERVICES

Grey River Argus, 23 April 1937, Page 5

ROAD SERVICES

STATE PURCHASE The Procedure (Per Press Association.) WELLINGTON, April 22. Arrangements for the acquisition by the Government of road goods services that are competing with the- Government railways over distances of thirty miles or more, are announced to-night by Hon. R. Semple. Mr Semple said that the Government had decided that their compensation should be paid where is was . found desirable for the Government to take over any services, and the following machinery was to be set up 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 Railways Department, to negotiate with road operators for the taking over of services.

These officers will report the results of their negotiations to a special tribunal, consisting of an independent chairman, appointed by Cabirfct, a representative of the road transport interests mid a representative of the Railway Department. In the cases where an agreement is reached between the purchasing officers and the road operator, the tribunal will consider their report and will submit -a recommendation to Cabinet through the Minister of transport. IW-here there has been a failure to agree, the tribunal will hear both parties, at public sittings, and will report its findings to the Minister. The Government, said Mr Semple, would not pay anything by way of compensation for the monopoly value of any license as such; but, outside of that, the Government would pay a fair price for any services taken over.