ROAD TRANSPORT

New Zealand Herald, Volume LXXVII, Issue 23759, 12 September 1940, Page 6

ROAD TRANSPORT

COSTS AND PRICES ROTORUA DISCUSSION CARRIERS AND FARMERS "MEET [BY TELEGRAPH —OWN CORRESPONDENT] ROTORUA, Wednesday The relationship between costs and prices was discussed by carriers and farmers' representatives from the whole of the Bay of Plenty and Eotorua districts at the sitting of the No. 1 Transport Licensing Authority, Mr. E. J. Phelan, when the tariff charges reached after a "gentleman's agreement" a year ago were reviewed, following an investigation by officers of the Transport Department.

It was decided that it would be most advantageous to review charges for cartage of timber, sand, gravel, fencing posts, petrol and empty drums, and in most of these cases the carriers sought an increase averaging 10 per cent. Since the schedule of prices had been agreed upon thero had been a, riso in oil, tyro and wage costs of over 15 per cent.

The carriers were willing to bear half the increased cost, but they felt that those using the service should help to bear the increase, said Mr. R. A Potter, appearing for tho associated carriers of the Bay of Plenty. Mr. Phelan said he believed tho increase had been more than 15 per cent and he thought that the matter should bo dealt with by an application through the National Council of Carriers for a Dominion-wide pronouncement by the authority. Mr. H. P. Ford, chairman of the Eotorua County Council, said the'agreeineut between tho carriers and the farmers last year had worked satisfactorily until tho present, but tho farmers wero now faced with the hardship of increased costs. They thought tho carriers should take an unselfish view and ho was surprised tho application for an increase had been made. Many farmers had increased their bacon production with little or no profit. The problem of rising costs had to bo faced and ho was of the", opinion the guaranteed price was as high as the country could stand. • Mr. Ford admitted that if tho increase was granted it would cost him only about, an additional £2 10s a year, but he contended that the farmers might soon be forced to do their own carting with horse and cart. Mr. Phelan said if the carriers co-ordinated they could give a better and cheaper service, while the farmers for their part could assist by providing loading facilities for tho handling of stock.