TRANSPORT COMPANIES

Otago Daily Times, Issue 22711, 25 October 1935, Page 4

TRANSPORT COMPANIES

PAYMENT OF COMPENSATION A VITAL PRINCIPLE (From Our Parliamentary Reports*) WELLINGTON, October 24. A vital principle in respect of the payment of compensation to transport, companies in cases where the Ci’own is taking over the services has been favoured by the Public Accounts Committee of the House of Representatives. The_, question was brought up in the committee’s consideration of the Government Railways (Wellington to Johnsonville) _ Bill, in which the committee made some important amendments. The original Bill gave a monopoly to the Board to carry on a transport service in the district, without compensation to the companies operating, but the committee suggested that the question of compensation should be decided by the Compensation Court set up under the Public Works Act, 1928. ' Mr W. A. Veit eh asked whether the Bill laid down the principle that in eases where road transport services had been eliminated by legislation compensation must be paid as a result qf that legislation. Mr W. J. Broadfoqt said that the principles were very special ones dealing with a special area and special circumstances. As a member of the committee he had been impressed with the' fact that although the companies’ handling of transport was very efficient at the present time, as the population grew difficulties might ensue so far as the carriage of people wag concerned. There was a principle in the Bill, however, which he did not want to see become general. The Bill definitely created a monopoly of transport in that particular area, and he did not want to see the powers conferred there extended elsewhere without a very full discussion in the House. He could see that if legislation of this type were introduced, then every transport service anywhere near the railways wa s in jeopardy. Although on this occasion an amicable settlement had been arrived at and both parties had expressed their thanks, he thought that on no account should the Railways Department be in a position to regard the present legislation as a precedent for future operations.