RAILWAYS COMPETITORS

Kaikoura Star, Volume LVI, Issue 92, 23 November 1936, Page 3

RAILWAYS COMPETITORS

SHORT-TERM LICENSE GRANTED f AUCKLAND', November 19. The possibility of the Railway De- * partinent buying the businesses of operators of goods services “at a fair ‘‘ valuation” where similar services can be provided on the railways was indis rated in a statement made by the No. 1 Licensing Authority (Mr E. -J. ’ Phelan) at a meeting to-day. The s state meat was made in reference to ' an application for the renewal of a goods service license, Mr Phelan stating that the policy equally concerned similar applications. The statement was as follows: — “This authority, after taking into cci sideration the evidence submitted, I and from personal study of the whole situation, is of the opinion that it can do no more than renew this license,

making the expiry date May 31, 1937. This short-termed license is given with the object of enabling the licensee and the Railways Department to negotiate with a view to the department acquir- ' ing the whole of the business carried on under the provision of that portion of the license which offers serious competition to the railway service. ‘ ‘ The authority is also of the opinion ’ that in all cases where the Railway De- . partment can render the necessary serr vice, such patronage should be given ’ to the State-owned service. With this object in view, the authority considers itself bound in the public interest to review such a license at the expiry of the current licensing year. The authi ority will, of course, require every assurance from the Railway Department . that such service can be given as will reasonably meet the requirements of , the public, and that a genuine attempt I has been made to purchase at a fair valuation the business of the road oper- • ator. Having received this assurance, the authority feels that it will have then to view very seriously the question of any renewal of a competing road service.” Mr Phelan subsequently said he understood that the Railway Department wlas prepared to find employment i for any operators thrown out of w’ork . as a result.