FIXING RATES

Hokitika Guardian, 6 November 1936, Page 2

FIXING RATES

GOODS SERVICE OPERATORS GOVERNMENT’S FUTURE,POLICY Per Press Association Copyright. - . WELLINGTON, November 5. A statement concerning the fixation by licensing authorities of rates which may be charged by licensed goods service operators was made by the Minister of Transport (the Hon. It. Semple) who said that h e had received numerous representations on the subject, by carriers’ organisations', and lie thought that the time was opportune to indicate the Government’s future policy in this direction. The Minister said he was totally opposed to unregulated and unbridled competition, but it could not be denied that regulated competition had certain advantages, and he did not propose to deprive the public of the benefit accruing therefrom. However, if any carrier was being menaced by uneconomic competition, through rate cutting by another competitor, ne could apply to have th e rate-cutting carriers’ affairs investigated by the Transport Department’s inspectors, and if it found that the competitor was financially unstable, the law provided for the termination of ms license.

The Minister stated he was not in

favour of the arbitary fixation of rates forthwith because it would tend to perpetuate a certain’amount of inefficency in the transport business, and tiiis would bo. definitely against the public interest. He continued: “After careful consideration ol the whole position, I hove decided.on the following to be the fairest practicable scheme for all concerned. Any local carriers’ assoia.tion, comprising a majority of the carriers in a, district, may prepare a rate schedule which is to be submitted to the local Farmers’ Union, merchants’ organisations, Chamber of Commerce, local bodies, and other interested parties (or tlieir consideration.

“If the majority agreed on the dev sirgbility of the rate schedule, application is to be made by the licensed operators to the licensing autlioi it> for the charges to he incorporated in their licenses. A public hearing is, then to be held, and if the licensing authority is then of the opinion that it is in the public interest that the rates should be fixed, this can be done. Steps will be taken to ensure that any schedule so fixed is protected from attack by financially irresponsible competitors.” Until the whole question of rate fixation had been thoroughly investigated, the Minister did not think it would be fair to lay down arbitrarily a schedule that would be acceptable only to on e party ; namely the carriers 1 hemselves. The whole question would be reviewed later iii the light- oi further experience.