TAXI LICENCES

Otago Daily Times, Issue 23578, 15 August 1938, Page 7

TAXI LICENCES

ISSUE TO RAILWAYS DEPARTMENT POSITION IN AUCKLAND UNFAIR COMPETITION ALLEGED Claiming that the road services branch of the Railways Department is now operating in the taxi business in Auckland, Mr A. Sinclair (chairman of New Zealand Taxi Proprietors’ Federation) states that this position has arisen despite an assurance given in the House of Representatives on July 12 by the Minister of Railways (Mr D. G. Sullivan) that it was not proposed to enter the taxi business.

'* I was present in the House when Mr Sullivan made the remark, when interjecting to a speech made by Mr Coates.” added Mr Sinclair.

He explained that on July 12 an application by the department before Mr E. J. Phelan, No. 1 Transport Licensing Authority, for tourist licences to make contract trips, was adjourned after objections had been heard by taxi firms and passenger carrying companies, who maintained that the rates oroposed were unfair to them. Mr Phelan then made the remark that, so far as he was concerned. he was not in favour of tourist licences competing on unequal terms with city taxis. “ I have now ascertained that, following the adjournment, the next move by the department was made last week, when it secured private taxi licences from the City Council,” added Mr Sinclair. “ Such licences entitle the holder to do the same work as the holders of public taxi licences, except that the holder may not use a public taxi stand, while neither the vehicle must be marked nor the driver wear a uniform or badge. The department’s vehicles are, however, marked, and notwithstanding the terms of the licence, the drivers wear uniforms. The department’s taxis are now engaged in general work that is not connected in any way in linking up with the railways.”

Mr F. Drum, manager of Atta Taxis Limited, said that the department’s taxis were carrying passengers from the steamers to hotels and back again, as well as being engaged on sight-seeing tours. On the last occasion the Monterey was in Auckland from America the department’s taxis were on the wharf taking passengers.

Mr E. C. Johnston, of Blue Motors (Johnston’s) Limited, explained that his firm operated under private taxi and tourist contract licences. Hearing that the department hart issued a statement that its vehicles were prepared to cater for weddings and funerals, he had interviewed one of its officers, who admitted that such a statement had been published on behalf of the department. This officer, however, said that the department’s vehicles were not going to do such work. The department not only proposed to cut the rates when it applied before the Transport Licensing Authority for trip licences, but it had the great advantage that it did not pay the pertol tax of lOd a gallon, tyre tax, or other duties on its vehicles. Its competition was therefore most unfair to its competitors and its services detrimental to the interests of ordinary road users who were contributing towards the upkeep and construction of roads through the petrol tax. It should be remembered by road users that it had been stated on good authority that if all exemptions on petrol taxation were removed it would be possible to make a reduction in the tax of 2d a gallon, Mr Johnston continued His impression was that the department, in undertaking steamer passenger work, was working in association with the Tourist Department on contract trips made to Wellington from Auckland. The department was not sending cars back by road in all cases, but by rail.