REASONS FOR DELAY

King Country Chronicle, Volume XXXIII, Issue 4800, 21 June 1939, Page 5

REASONS FOR DELAY

NEW RAILWAY RATES. GOVERNMENT DIFFICULTIES. CO-ORDINATING ROAD AND RAIL. Difficulties being experienced by the Government in co-ordinating the freight charges for the recently acquired State road transport services and the railways, were given as the reason for the delay until July 1 of the operation of the new mileage rates in the railway tariff. The reasons were outlined by the chairman of the Hamilton Chamber of Commerce, Mr. A. G. Ward, at the meeting on Monday night.

Mr. Ward said an official of the Railway Department, Auckland, had explained to him that the new rates required the authorisation of both the Minister of Railways, the Hon. D. G. Sullivan, and the Minister of Transport, the Hon. R. Semple. This had been delayed until the road and rail services were co-ordinated.

A denial was given by the official to the suggestions that the postponement of the new rates, which would be of benefit to Hamilton business men and which would mean increased charges to Auckland firms on the Auckland-King Country line, was due to pressure exerted by interested parties in Auckland.

Combining Road and Rail.

It was apparently the intention of the Government, said Mr. Ward, to formulate an amended tariff schedule to include both the road and rail services. Difficulties and delays in coordinating the two services and in organising the new branch of State transport were responsible for the delay of one month in the operation of the new schedule.

Mr. Ward stated that the railway official had assured him that the new rates would definitely operate as from July 1. Mr. J. T. Shaw explained that the preferential rates for Auckland consignors were adopted by the Railway Department to meet competition from the road when the motor transport services were privately owned. With the Government’s elimination of road competition, new railway rates were drawn up. The chamber decided to communicate with the Minister of Railways, the General Manager of Railways, and the Prime Minister urging that no further delay in the enforcement of the new rates should be permitted.