MOTOR SERVICES

Otago Daily Times, Issue 22421, 16 November 1934, Page 13

MOTOR SERVICES

; tenure of licenses . ... GREATER SECURITY REQUIRED OPERATORS IN FEAR OF RUIN A claim that the holders of licenses for motor passenger services were in constant fear that they might be ruined by a refusal of a renewal of their licenses and that they should be given greater security by an extension of the term of the licenses was made by Mr C. J. L. White in the course of an address to the No. 9,Transport Licensing Authority yesterday. “It must be conceded by any fairminded person,” said Mr White, “ that prior to the coming into operation of the Transport Act on November 11, 1931, road competition was so wasteful and the competition of road services so keen that the whole system was eco- ■ nomically unsound. As an instance of I this one Ims only to consider the road between Dunedin and Milton, over which no fewer than about 15 regular daily passenger services were operating, each competing with the other and in most eases endeavouring to cut fares uud prices for the carriage of goods. “ When the Transport Act became law and the various boards first sat in this district a considerable weeding out occurred aud there was a survival of only the fittest services, which placed these surviving services on a much better ec)noraic footing besides giving the public reasonable and much surer regular. services at times when they most required them.” , ■ 1 1 CO-ORDINATION OF SERVICES Since the coming into operation of the Act, be added, there had been constant reductions in the number of services operating, until in 1933 it was clearly intimated that it would be the policy of the boards to endeavour to bring about a co-ordination of all road services. The birth of this policy was, no doubt, due to a realisation by the Government and by the licensing authorities that the public required a reasonable road service operating not only where railway facilities were not available, but also as an alternative service on routes covered by the railway itself. It would appear-that the reason for endeavouring to effect this co-ordina-tion was to provide the public with regular and proper road services and on railway routes witli regular alternative services for those who preferred or who were obliged by reason of the locality where they lived to travel by bus. Many of the bus proprietors, particularly in the Otago district, realised that the policy of the Government and of the boards in requiring some co-ordination of service was a wise and necessary one, and as a result many of them got together to consider the possibility of effecting some co-ordination. So far as the Main South road between Dunedin and Balelutba was concerned, with its contributory services, a scheme for coordination of considerable magnitude and of great efficiency so far as the public, was concerned was evolved. This co-ordinated scheme was received apparently with approval by the Central Licensing Authority, which then had jurisdiction over the services concerned, this being demonstrated by the fact that it made special arrangements with the board, to have an application for variation of a license over which it had no control heard urgently by the board to complete the scheme embraced by the co-ordination. Altogether it cost South Road Services, Ltd., alone the large sum of £3750 in order to effect the co-ordina-tion of these services and to provide, vehicles suitable for the traffic, but even with this outlay the service had been operating successfully and smoothly during the past 12 months. LICENSEES ANNUALLY IN V. JEOPARDY ‘ “Considering the trouble and expense involved in bringing about this happy result,”' Mr White stated, “ these,service proprietors consider that their position is hazardous to say the least because under the existing legislation they are in jeopardy of losing their respective licenses every year upon their applications for renewal. The matter is of the utmost importance to these companies and men concerned because not only is their very livelihood at stake but also the large amount of capital invested in the various of it invested in motor vehicles which depreciate so rapidly and would be worth so little if sold apart from a licensed service. They consider they are liable at any time to find themselves ruined. By existing .legislation the board has no power to give them any guarantee or security of tenure of their licenses, but surely these services which have gone to so much trouble , and expense to meet the wishes of the licensing authorities are entitled to look to the Government to pass legislation to give them some measure of protection at any rate for, say, a limited number of years. This want of security tends to unsettle the whole of the services concerned, making the proprietors hesitate before investing further capital in their businesses and making them regard the future with alarm and fear. It; is not fair to any line of business, much less to one involving the outlay of so. much capital, that such uncertainty of the future should exist. SECURITY OF TENURE NEEDED “ I respectfully suggest that the time has now come when the board might put forward recommendations to the Government that a halt should be called and that the services surviving after the sittings should be assured that they will not be interfered with by further weddings or Government interferences for such period of years as may be deemed reasonable.” I Mr White asked that the board should make some recommendations to the Government that some security of tenure of license should be granted to the surviving services. Mr J. P. Ward said that operators whom he represented regarded the matter as being of the greatest importance and suggested five years as the term of the licenses. The board con 11 reserve the right to place operators “on the mat.” BOARD SYMPATHETIC The chairman (Mr A. 1. W. Wood) said that in regard to security of tenure the board was in sympathy with all operators aud realised that the term of the licenses should be increased. The authority had felt, in asking operatois to co-ordinate, that the question of tenure was important, aud, indeed, had felt diffident in asking them to expe vd considerable sums when there was no greater security. It felt that if operators had a longer tenure it might be possible to bring about a greater degree jof co-operation. He understood that officers of the department were investigating the matter and, no doubt, they would be pleased to receive recommend:!- . tions. He undertook to forward Mr White’s statement to the proper quarter with the board's recommendations.