Northland Co-operative Transport

Northern Advocate, 23 February 1940, Page 4

Northland Co-operative Transport

The Northern Co-operative Carrying Association formed at Kaitaia has not come into existence without arousing a good deal of opposition, and a second company of carriers outside the northern association has been formed.

The position as far as the northern association is concerned was explained by Mr E. R. Bird, chairman of directors for the Kaitaia Dairy Company, when, accompanied by Mr L. A. McIntosh, secretary, and Mr Craig, factory manager, he waited upon the Mangonui County Council on Wednesday.

The transporters came in as partners and their goodwill was assessed on the basis of the previous three years’ profits. They were not bought out, but came in as partners for a long term, first on salaries, plus the goodwill of the factory, plus a further 10 per cent, of the profits. It was unfortunate that some had not come in. They had agreed to do so, but later had withdrawn. Fifteen licenses had come in on the basis he had named and they had turned down eight offers to sell them trucks, some from outside districts. The response had been splendid, and the business was booming. A meeting of the dairy company suppliei's had been held, and there had been no opposition to the transport company. The part that worried the directors was the accusation that the dairy company was trying , to dominate the position. It was said that the job was a carriers’ job and that the carriers should be left alone to do it, but the Government was insisting on co-ordination, the benefits of which should belong to the user. It had been found in Britain that it was impossible to work to a schedule. There they worked on the principle of the conservative price and a rebate at the end of the year. There were great fluctuations in transport in this district and foF the protection of the users any, balance after the just claims of the carriers have been met should go to them. Two conflicting interests had been brought together and their positions defined. The car-

riers had been met, not only fairly, but people were badly stung by their isolation, but evils arising from overlapping had been successfully dealt with by the dairy company in respect to both bobby calves and pigs. The object they had in view was a more economical service and one that could be used to its utmost capacity. . Cr. Matthews asked if tendering for supplies of metal for the county would be eliminated. Mr Bird: I believe it would, but there will be tendering while there are two companies. Cr. Vickers: Will the rebate apply to users who are not dairy suppliers? Mr Bird: Yes, but there can be no rebate where prices arc competitive or tenders are invited.