ROAD MONOPOLY

New Zealand Herald, Volume LXXV, Issue 23019, 22 April 1938, Page 8

ROAD MONOPOLY

PASSENGER SERVICES PURCHASE BY STATE CANTERBURY OPERATORS LARGE SUM INVOLVED [BY TELEGRAPH —PRESS ASSOCIATION] CHKISTCHURCH, Thursday The Government has completed negotiations for the purchase of three of the largest road passenger transport organisations in Canterbury —Lister's Motors, Limited, Mockett's Motors, Limited, and Dalzell's Motors, Limited. These three firms cover the major portion of South Canterbury and North Canterbury, and their purchase by the Government will bring under Government control the major transport services operating in the province. It is not yet possible to secure an official announcement about the transactions, but principals of the three firms involved stated this evening that complete finality had been reached in the negotiations. No Pressure Used

Although the services run by Lister's Motors, Timaru-Christchurch, TimaruFairlie and Timaru-Waimate, are to some extent in competition with the railways, in the case of the other two firms this does not apply, and the principals involved believe that the only reason for the purchases is that the Government has decided to extend its policy of the purchase of all national transport Bervices. It was emphasised by those affected in these transactions that the Government had not made the purchases compulsory and that no pressure had been brought to bear on the firms selling out. Officials sAid that the prices agreed on between the three firms and the Government had been reached after arbitration and were satisfactory to everyone concerned. However, officials of all three companies were unable to advance any reason for the decision of the Government to make the purchases other than that there had been a Cabinet decision to absorb all road services operating.

Passenger Lines Only The Government is expected to fix an early date for taking over the services. It is understood that the goods service section of the three firms affected is not included in the transaction, which deals with passenger lines only. However, these three firms undertake a major portion of the passenger transport between Christchurch and South Canterbury and North Canterbury. Dalzell's Motors cover the Christchurch-Hawarden, ChristchurchWaikari and Christchurch-Mason's Flat routes. Mockett's Motors carry passengers between Christchurch-Culverden and Christchurch-Hanmer. Competition Removed

In future, following the taking-over of these three firms, the Railways Department will undertake all this passenger transport. Mockett's Motors is partly competitive with the existing railway service, but for some time has carried out its transport of passengers to Hanmer Springs in conjunction with the Railway Department. However, the department will now apparently have something like a complete monopoly, not only on this line but also on the other two.

It is not intended, apparently, to divulge the prices paid for the services. This procedure has been adopted in other cases of purchases by the department, and in these new transactions, although the Cabinet has approved of the three purchases, the prices will not be made public. It is stated unofficially that in the aggregate the purchase money has run into many thousands of pounds.