ROAD TRANSPORT

New Zealand Herald, Volume LXXIV, Issue 22896, 26 November 1937, Page 13

ROAD TRANSPORT

GOVERNMENT'S POLICY' PROTECTION OF RAILWAYS MONOPOLY OBJECTIVE DENIED STATEMENTS TO DEPUTATION [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Thursday V Resolutions expressing the concern of a large number of national organisations at the Government s increasing acquisition of private land transport undertakings in New Zealand were presented to the Prime Minister, the Rt. Hon. M. J. Savage, and . the Minister of Transport, the Hon. R. Semple, by a deputation to-day. The main issues related to the effect of the Government's attitude on service to the community and the extent of the competition of private services with the railways, and it was stated that the Government's policy appeared to be one of railway protection. Replying to the deputation, Mr. Savage said that the Government had not set out with the objective of single ownership of transport services, but simply to co-ordinate those services. Wherever a private individual could do the job he would be left to do it. The deputation was representative of the Road Transport Alliance, Passenger Services' Federation, Motor Trade Federation, Motor Body Builders' Union of Employers, Timber Merchants' Federation, Farmers' Union, Counties' Association, Manufacturers' Federation and Associated Chambers of Commerce. Deputation's Fears Mr. M. G. C. McCaul, on behalf of the Associated Chambers of Commerce, said that commercial life hinged on transport, but they appreciated the fact that some regulation of transport was necessary and inevitable. "What concerned those represented by the deputation was the nature, extent, objectives and effectiveness of the regulations imposed. They realised that the country had an asset in its railway system, but from a financial point of view the railways were also a serious liability. For that position the competition of transport was only partly to blame. There was more to be laid at the door of uneconomic railway construction. The transport regulation policy had appeared to be one tending toward protection of the railways against the competition of road transport to an extent which to-day was causing concern. They admitted the rights of the railways as the central transport service. On behalf of the New Zealand Farmers' Union, Mr. R. W. Bothamley said that the union was opposed to single ownership of transport and. viewed with great regret the elimination of small operating units of the industry, for these units gave an opportunity for great flexibility and mobility in rural areas. Competition Question Mr. Semple said that it never had been the intention of the Government to nationalise the transport system. I The Government's thoughts were enI gaged with those services in "direct I competition with the railways. New I Zealand had spent £73.000.000 on the ; railways and was still building lines. ' i Having spent that public money on ' I railways, was it to be expected that ': the Government would allow . private I! individuals to use roads built and main- ' I tained by the taxpayers to drive the ! railways out of business?

The Government had to protect the railways and that was all there was to it. The Government was dealing as fairly as it could with the people concerned and no Government in the world had been as fair in dealing with road transport services. Co-ordination of Services "We have got to take all forms of transport into consideration," said Mr. Savage. "We will never get perfection, but we will get as far as possible if we can work together. We waht to see the motor serving the railways rather than running the railways and itself to death at the same time." The Government did not want anyone's service for nothing, added the Prime Minister, but it did not want to pay -a first-class price for secondclass material. So .far as was humanly possible existing services would be allowed to remain.

OFFICER'S ASSERTION

FORCING HAND OF STATE MR. SAVAGE'S DECLARATION [BY TELEGRAPH—SPECIAL REPORTER] WELLINGTON, Thursday "No officer of the Stnte is going to force tho hand of this Government," said tho Prime Minister, Mr. Savage, when attention was drawn by Mr. H. S. S. Kyle (Opposition—Riccarton) in tho House of Representatives to-day to u statement, made in Christchurch recently by the No. 3 Transport Licensing Authority, Mr. T. H. Langford. The statement was as follows: "I am trying to force the hand of the Government as far as these licences are concerned, because 1 am satisfied, that as soon as you get the transportation system under licence you do not need to worry about licensing industry as they are doing in Germany. Get control of transport and you will get control of industry." Mr. Kyle said it was an extraordinary statement for a public servant to make and ho wondered whether the Prime Minister had noticed it. On more than one occasion Mr. Savage had declared that "there is only one body in authority in New Zealand and that is the Government." He seemed to have reckoned without the No. 3 Transport Licensing Authority, who proposed to dictate tho Government's transport policy and to use his powers over transport to establish control over all branches of industry. The Prime Minister: The statement is not consistent with tho officer's actions.

Mr. Kyle: I want to know whether the Prime Minister is going to allow this statement to go out? Mr. Savage: No officer of tlie State is going to force the hand of this Government.