ROAD SERVICES

Otago Daily Times, Issue 23220, 18 June 1937, Page 10

ROAD SERVICES

EXPROPRIATION BY STATE AN INSTALMENT OF SOCIALISM CONCERN AMONG FARMERS (Per United Press Association) WELLINGTON, June 17. Various aspects of the Government's announcement with regard to goods transport were dealt with by Mr W. W. Mulholland, Dominion president of the Farmers' Union, in an interview at Wellington to-day. He raised the question whether the Government's proposal to acquire certain road services was to be regarded as a first instalment of the ownership of the means of production, distribution and exchange. It was recognised, Mr Mulholland said, that the Government's offer to acquire various transport concerns was not a bargaining offer, but an announcement of its intention to acauire these concern:; compulsorily. The fact that at present services which were run in competition with the railways seemed to be the ones to be bought out appeared to indicate that the elimination of this competition was, more a matter in the Government's mind than making the best use of the various transport facilities in their own spheres.

Mr Mulholland declared that it was uneconomical in many cases to handle traffic partly by rail, and this had resulted in users being forced to own their own goods transport. Incidentally, it had been suggested that the Government intended to prevent users from taking advantage of this method of dealing with their own transport, and a statement of policy in this regard was rather anxiously awaited. He emphasised that the expropriation of transport concerns was not coordination of transport and did not necessarily have any bearing on coordination. Mr Mulholland also said that there was considerable uneasiness among farmers about increasing costs, and a fear existed that the position might get out of hand. He also indicated that there was a general feeling' that the guaranteed price did not represent in the circumstances any gain to the farmer. The price of wool was high and must inevitably fall again, he said, but costs in. the past had shown a great reluctance to fall in sympathy with the fall in prices. RELUCTAHT TO SELL VIEW OF SERVICE OPERATORS RIGHT TO SEEK RENEWALS RESERVED (Per United Press Association) WELLINGTON, June 17. A meeting of motor transport operators affected by the Government's purchase proposals was; held in Wellington yesterday and to-day. There was a representative attendance of 40 operators from all the provinces affected, and the meeting was presided over by Mr A. S. Bailey, chairman of the New Zealand Road Transport Alliance. The recent statement of the Minister of Transport (Mr R. Semple) outlining the machinery for State purchase and the letter from the Commissioner of Transport to all operators affected were considered, and the following motion embodying the views of the meeting was agreed to unanimously:— " That this meeting of motor transport operators reaffirms its previously exoressed policy to the effect th°y do not desire to discontinue or sell their businesses, believing the nublic interest to be best served by the continued operation of these services by private enterprise. In view, however, of the Government's policy of. single ownership, the operators feel compelled to negotiate with the purchase officers and (or) a tribunal, but reserve the right to pursue their application for a renewal of their licences under the Transnort Licensing Act in the event of the settlement arrived at not being wholly to their satisfaction."