Dairy Industry Moves Against Cartage Rates

Northern Advocate, 27 May 1941, Page 7

Dairy Industry Moves Against Cartage Rates

The position concerning cartage rates was fully explained to the Northland Dairy Association at the annual conference in Whangarei today.

“At the conclusion of last year’s conference, reference was made at length to the association’s activities with regard to the fixation of cartage rates by the No. 1 Transport Licensing Authority,” stated the chairman (Mr. E. G. Appleton) in his report \o the conference. '

“Matters had then reached a stage where the association had lodged an appeal against the Authority’s decision.

“During the past year matters were carried further, but litle real progress was made. It became apparent that if further progress was to be made, it would be necessary to enlist the support of all bodies representing primary producers.

“With this object in view close contact has been maintained with other local and national primary producers’ bodies in the hope of eventually achieving the establishment of an independent national tribunal.”

Investigation Wanted

After hearing an address on the subject by Mr. A. C. Lamb, who had been concerned on the association’s behalf in the representations to the licensing authority, the conference decided to request the National Dairy Association to take up the question of cartage rate fixation with the Minister for Transport, with a view to having the principle of rate fixation determined by a national tribunal so constituted as to permit of a full investigation- into the whole rural cartage problem in New Zealand. In moving to this effect, Mr. S. WSmith, of Bay of Islands, said that Northland had been the spearhead of the movement for the protection of the interests of farmer-users of transport. The Northland Dairy Association had been to the forefront in the movement, but its finances were limited. The whole question was one of national interest, and therefore should be finalised on a national basis.

Seconding the motion, Mr. Appleton said that the motion had come from the executive.

Negotiations Outlined

Some advantages had been gained, but must continue to be pressed to avoid losing them, said Mr. D. A. Finlayson, of Madngaturoto. Negotiations on the question were outlined by Mr. Lamb, who said that practically the whole of the Auckland Province was united in opposition to the fixation of cartage rates. Since the last conference the Transport Department had made one more attempt to fix rates, and public sittings had been held throughout Northland for the hearing of evidence. The operators had demanded a 20 per cent, increase on the old rates, but had called no evidence in support. On behalf of the users, the demands had been vigorously opposed, and they had had the advantage of the presence of officers of the Transport Department, who had given illuminating information as to some of the basic principles they had proposed to adopt in fixing the rates.

Uneconomical Basis Two principles demonstrating the unfairness of cartage were: Rates were to be fixed to cover the cost, and reasonable remuneration to a single truck operator. The single truck operator was agreed by the operators and the department to be the most uneconomical unit of transport. When asked why this should be taken as a basis, the department officers had had no answer to make except that it was a matter of Government policy. The other point was what the department considered reasonable remuneration to the single truck operator. After allowing for every possible cost and contingency, and for an operator working only 44 hours a week; remuneration had been fixed at £445 per annum. Contract With Farmer

“A single truck operator has at stake a capital of probably £7OO, and yet he is guaranteed a reward approaching £9 a week,” said Mr. Lamb. “How does this compare with the reward of a dairy farmer with the same amount of capital at stake, even forgetting the hours worked?” A schedule had been brought out by the Transport Department far below the demands of the carriers, being in fact little different from the original schedule, although costs had risen steeply in the meantime, he continued. This schedule was, at present the subject of appeal.

Efforts had been made, and were still being persisted in, to obtain the setting up of an independent tribunal to examine the whole question of cartage rates and, in particular, the basic principles. Tribunal Necessary

This tribunal had been promised by the Government and, but for the war. would have been set up before the present time. It was felt that until this tribunal, entirely apart from Government control, had done its work, no real satisfaction would be obtained in a difficult problem. Outlining the headway that had been made, Mr. Lamb said that first and foremost the farmers had made their presence felt. They had shown the Government they would not be imposed upon. A considerable saving in cartage costs had been effected, and while the Minister for Transport formerly had been the only court of appeal, this had now been taken over by Sir Francis Frazer. An independent tribunal had been promised, this being a further breakaway from Government control. Own Carrying Movement

Closely allied with the movement for the abolition of fixed cartage rates was the movement of the dairy companies ‘or their subsidiary companies to do their own cartage for suppliers; a movement commenced in

Kaitaia "and followed by the Bay of Islands Company and Tauranga. and

later the New Zealand Co-op. Dairy Co. Ltd., had bought out carrying companies and commenced its own carrying. “At the original hearing on cart-

age rates before the Transport Authority, 1 the operators' were warned that if they'persisted "in unreasonable demands and these demands were supported by the Authority, the; dairy companies were likely, by the co-op-erative movement, to take carrying out of their hands,” said Mr. Lamb. “The suggestion was ridiculed, but the warning had come home to roost.” Government Accedes

Attempts by the northern companies to detain licenses to do the carry-

ing for suppliers had been strenuously opposed by the operators, arid in the first instance by the Transport Department. The executive had given all/the assistance it could to - obtain the granting of licenses, and finally, with pressure from South Auckland dairy interests, and particularly Mr. W. Marshall, of the New Zealand Co-op. Dairy Co., Ltd., the Government had given way. The conference thanked Mr. Lamb for his report.. ' ■ „