TAXIS AND TOWN CARRIERS

Grey River Argus, 27 April 1937, Page 5

TAXIS AND TOWN CARRIERS

REPORT OF INQUIRY Cut-Throat Competition DEMANDS REGULATION (Per Press Association.) WELLINGTON, April 26. In recommending that all town par riers be brought under the provisions of the Transport Licensing Act, the committee which v-as set up. by .the Minister of Transport to inquire . into the taxi and town carrier business, found that the present powers in connection with the licensing and control of carrying concerns were inadequate. “A considerable amount of evidence was submitted showing the heavy inroads that, have been made into the business of the local carriers by the long distance haulers,’’ states the report. “It is clear that the local erariers have suffered heavily in this direction. Thev have also suffered as the result of the local collection and delivery services which the Railway Department has been forced to operate in certain towns, in order to meet the competition from the long-distance road services. i

“In addition to this, local carriers have had to meet competition from operators outside of the towns who had been refused or had been unable to secure, licenses under the Transport Act, these operators commencing business in the towns where licenses were easy to procure from the local bodies. Evidence was also submitted showing that, at least, one long distance operator, who had been bought out by the Railway Department, had secured local body licenses for nine trucks, and had then commenced business at very low rates. It seems undesirable that the money expended by the State, in securing the co-ordination of long-dis-tance road services with the railways, should be used to produce a. condition of chaos and of cut-throat competition in another section of the transport field.

“The principal point revealed by the evidence tendered by the town carriers and their organisations was that the efficiency of the industry was being adversely affected by s-evere competition. This competition resulted from the ease of entry into the business. The evidence showed that men could obtain lorries for a small deposit and .could commence business by heavy rate-cutting in order to get a foothold. The general result had been a constant state of cut-throat competition, which has impared the efficiency -of the carrying business' to the public, and has reduced to a low level the standard of living of many persons engaged in it.

“Another factor that has tended to promote uneconomic competition is that owner-drivers are not required to observe any standard conditions in respect of wages and hours of work. The result of this is that concerns that ar e employing labour, and are observing award conditions, find it difficult, and impossible in many instances, to compete with the owner-drivers. “There are at present just undei 5000 trucks licensed under the Transport Act. If the recommendations of the committee are adopted. 4000 to 5000 more trucks will be brought under the provisions of the Act, If ever the provisions of the Transport Act are applied, and reasonably uniform conditions regarding wages, driving hours and mechanical conditions of trucks are applied to all engaged in th e industry, competition would be on a. fair basis, and much of the present ratecutting: would disappear. As far as the national transport system is concerned, ancillary users—i.e. merchants, etc.—who own and operate their own trucks are an important and growing unit. The committee is convinced that a national scheme of regulation or co-ordination will not serve the purpose of rationalising motor transport in the public interest unless it embraces the ancillary users as well as the carriers for hire or reward. It appears to be desirable, in the public interest, that ther e should be parity of control. If this is done, competition will be on a uniform and equitable basis. No form of organisation will receive any undue advantage in the competitive struggle, and progress will, therefore, be along lines determined by relative efficiency. IWe re-i commend that legislation on similar lines to that in Britain, dealing with ancillary users, should be promulgated in the Dominion.’’

In an interview, to-day, Mr. Semple Minister of Transport, said that 1)3 was now in a position t 0 release the report, made by the recent committee of inquiry into the taxi and town carrying businesses. The recommends, t'ions of the committee, together with steps that will be taken in connection with each, are set out hereunder. Recommendation No. 1; That all taxi services be brought under the pr«. visibns of the Transport Licensing Act. To give effect tlo this it will be ncces sa-ry for a declaration to be made under Section 16 of the Transport. Licensing Amendment Act 1936.. “I agree with this recommendation. and am having draft amending legislation giving effect to it prepared for submission to Parliament next session.” Recommendation No. 2: That metro, politan licensing authorities under the Transport Act carry out the licensing or tiaxis in and around the four main cities, and that licensing outside these areas be carried out. by two new licen. sing authorities, to be appointed.—“As regards taxi services outside the metropolitan districts, the existing licensing authorities have made such good' pro. gress recently with their present licen. sing work that I am inclined to think they would be able to cope with the work involved in dealing with taxis, and it is proposed to adopt. this course.” Recommendation No. 3; That the taxi business be given a. reasonable time, say IS months, in which to iniprove its internal organisation. If satisfactory improvements are not effected in that time, that the Post and Telegraph Department take over the operation of telephone systems, in the four main cities, and that the licensing authorities take steps to organise onp association to control the internal organisation of the business in the principal towns.—“ This recommendation does not call for immediate action.”

Recommendation No. 4: That Legislation be introduced to provide- for registration of insurance agents dealing with comprehensive motor vehicle insurance, and fixation of commissions.—“There appeal's tio he no justification, for some of the- very high rates of commission in existence.”

Recommendation No. 5: That legislation .be introduced requiring the real rate of interest charged under the hire

purchase agreements, affecting the- pur. chase of cars for use as taxis and trucks flor town carriers, to be diselos. ed in such agreements.

Recommendation No. 6; That the Transport Department keep a careful check on matters concerning the terms of purchase of vehicles and tliat if deemed necessary, legislative action be taken for a reduction in interest charges.

Recommendation No. 7: That legisla. tion be introduced prohibiting the charging of interest! on commission on insurance premiums allowed to concerns which finance the purchase, of taxis or trucks for use in town carry, ing businesses.

Recommendation No. 8: That uniformity of working conditions, wages and hours should be effected respect, ing all drivers of taxis, on thp, basis of appropriate industrial awards, such uniformity to be a condition of license. Recommendation No. 9; That the present deposit required from insur. ance companies underwriting- third' party insurance, be increased from £lO,OOO to £25,000.

Recommendation No. 10; That the existing third party insurance legislation be amended by providing that caiicellatlion o f “approval” for the purposes of the Act be a penalty for allowance of rebates on premiums.—“l consider this recommendation should be given effect to.” Recommendation No. 11: That- it be made an offence to engage a taxi with, out a reasonable prospect! of paying thp- fare. —“Taxis .are particularly subject to exploitation by impecunious persons, and it is proposed to give effect to this recommendation.” Recommendation No. 1; That all town carriers bo brought! under the provisions of the Transport, Licensing Act.—“lt is proposed to give- effect to this recommendation.” Recommendation No. 2: That the four District Licensing Authorities already in existence carry out the license of town carriers thnougnout the- whole Dominion. —“It is proposed to give ef. feet to this recommendation.”

“I am satHsfied,” continued Air. Semple, “that when recommendations of t.he committee are given effect to, their combined effect will place both the taxi and town carrying businesses of the Dominion in a much more healthy and efficient state than they are in to. day,”