ROAD SERVICES

New Zealand Herald, Volume LXXIV, Issue 22819, 28 August 1937, Page 16

ROAD SERVICES

. SINGLE OWNERSHIP GOVERNMENT'S. POLICY ' OPERATION IN A YEAR / I LONG-DISTANCE ROUTES That .the business of goods carrying ■between the principal cities and towns of the Dominion would be conducted under single ownership conditions within 12 months was tho prediction made by the district traffic manager of railways, Mr. H. O. Couch, who appeared for the Railway Department when several applications for renewal of goods service licences were considered by the No. 1 Transport Licensing Authority, Mr. E. J. Phelan. in Auckland yesterday. ' " Under existing conditions operators have no sense of security," said Mr. Phelan in pointing out that shortdated licences had previously been given to operators to enable the department to negotiate purchases. It was ' desirable that those negotiations should be expedited, so that the fate of the various services could bo determined once and for all. Meed to Reduce Cost As the authority was aware, said Mr. Couch, in making certain submissions on behalf of the Minister of Railways, the Hon. D. G. Sullivan, the Government had set tip a complete purchasing organisation to negotiate with a number of goods service owners for the purchase of their businesses. Mr. Couch referred to a recent statement of the Minister of Transport, the Hon. R. Semple, in which the latter ■ v had stressed the need for co-ordination ■of the various transport services to eliminate waste and\ reduce transport .■costs. The Government was convinced .that so long as tho road freight services were run as small units wholly independent of tho railway freight seryices little or no progress in effective co-ordination was possible, Mr. Semple had said. Negotiations lor Purchase The Minister had stated further, said Mr. Couch, that the purpose of the new policy was to make the road and rail services complementary rather than competitive over the important long- / distance routes running out from the four main centres, and to weld them into an efficient service. A reduction in truck mileage and wear and tear on the roads would be the main re- • suit. Business men could rest assured .that the new policy would mean a reduction in the Dominidn's national overhead and transport costs without anj' diminu£ion in the standard of the service offered. "Negotiations are-in train for the purchase of a number-'of services of this class at the present time, and by the end of the current licensing year the position will be very different from what it is to-day," Mr. Couch continued. "By that time the business ot carrying goods between the _ principal cities and towns of the Dominion will be conducted under single ownership conditions, and it is a consideration which ought to be taken into account as relevant to the present renewal a.pplications." Renewal lor Twelve Months

v Even now it could be shown that the continued operation of the services as at present conducted was unnecessary and undesirable in the public interest, Mr. Couch contended. The term for which any licence might be granted by an authority lay entirely within the discretion of the authority, and an applicant could not claim for a licence for'the maximum term of three years by right. It was submitted that, in view of tbe3e considerations, the licences of several applicants should not be renewed beyond May 31, 1938. The applications referred to by Air. Couch were those of L. Marinovich and Sons, F. W. Stembridge, the Boose Shipping Company, HelensvilleAuckland Transport, Limited, A. E. Forrest, T. A. Peterson, L. J. Shaw, ."YVoolley, Morgan and Burnett, Limited, B. R. R. Taylor, and New Plymouth Daily Transport, Limited, Appearing for Marinovich and Sons,* the first application called, Mr. A. It. Wilson remarked that it was unusual for the Government to oppose such applications. He asked if the authority would give effect to the recommendations of the Railway Department. Need for Urgency In reply, Mr. Phelan said he was endeavouring to carry out the intentions'of the Government, but he would like the Railway Department to regard the present application as urgent and deal with it finally. Each case, however, would be dealt with on its merits. The licence of Marinovich and Sons would* be renewed on the same terms as formerly for a period of 12 months from the expiry of the old licence, June 1 Mr. Phelan later again expressed the hope = that the department would expedite its negotiations for the purchase of'goods services. The operators had' no feeling of security. Renewals for a further 12 months were granted in all the_ remaining cases. Decision was reserved in the case of Mrs. G. F. Wilson, who made application for a renewal of a servico; at Waimauku, while A. Allingham withdrew the route portion of his application'for renewal of bis licence for a Rukekohe service, and was granted a licence for three years. A,number'of applications for amendments to existing services, transfers of licences and three applications for new services were granted. Decision was reserved in the caso of an application for the transfer of the licence of Removals, Limited, to E. and H. Craig. An application for the transfer of the Auckland-Piha passenger service from X Rimmer to T. H. Bonnett also was granted. •*' ; r"«' I ■