ROAD MOTOR SERVICES

Otago Witness, Issue 4042, 1 September 1931, Page 9

ROAD MOTOR SERVICES

RAILWAY DEPARTMENT’S DIFFICULTIES

' UNFAIR PRIVATE COMPETITION. Private taxi services operating in competition with road services conducted by the Railways Department are strongly criticised in the annual report of the General Manager of Railways, Mr H. H. Sterling, who urges the necessity for legislative action to limit the activities of yvhat he describes as “ pirate services.” The year’s operations, states Mr Sterling, resulted in a loss of £5842, being a decrease of £5594 as compared with the previous year. Details of the loss are as follow: —

* Increase. » After making allowance for the Dun-edin-Port Chalmers service, which was inaugurated during the financial year under review, revenue fell by £5293, due to the competition of taxi services, the economic depression, and the dislocation of the Napier-Hastings service by the earthquake.

"PIRATE SERVICES.”

Another factor which has had material effect on the revenue side (says Mr Sterling) is the operation of pirate taxi services on three of our licensed routes. It is manifestly unfair that an omnibus service licensed over a route and capable of dealing with the passenger requirements of that area should have its potential traffic interfered with by unlicensed services which are not capable of dealing with the total traffic offering. The purpose of a taxi cab is to provide transport at a fixed meter charge on a mileage basis, but the position has developed that these vehicles now carry passengers at a rate competing directly with licensed omnibus services which have to conform to the regulations regarding vehicles, routes, and fares. Taxi services are not so regulated, and the position is such that the financial condition of the licensed omnibus services is being weakened by the pirate operators, who are under no obligation to maintain time tables, and who continue in operation only when and so long as it suits them. We have pirate taxi services now operating in opposition at Hastings-Napier, Hutt Valley, and D.unedin-Port Chalmers, and in reviewing the position I can but state that the unfairness of the position is such as to call for immediate actio n by the Legislature. Unless some definite steps are taken in this direction at an early date it will be a difficult matter for the licensees of bus services to continue to maintain satisfactory services on an economic basis; It is to be noted in viewing the figures regarding the bus services that the amount shown as profit or loss (as the case may be) is arrived at after interest has been charged on the balance of capital remaining after depreciation has been allowed for. Such interest would, of course, be included in the dividend or owner’s profit if these services were operated by private enterprise. In other words, the profit (or loss) shown in each <tase therefore represents the surplus or deficiency after debiting an investor’s re4Hirn (by way of interest) on the money for the time being invested in the business. DUNEDIN-PORT CHALMERS SERVICE.

The Dunedin-Port Chalmers service was brought into operation on June 2, 1930, in order to protect the department’s interests -which were being threatened by private enterprise and to enable the department to effect economies in train services in this area. The revenue has been adversely affected by the newness of the service, the acute unemployment and general depression, and by the operation of a pirate taxi service. The expenditure was somewhat higher than normal owing to major engine trouble developing in one of the buses, necessitating a heavy overhaul.

1930-31. Revenue .. £103,348 Expenditure 109,190 Loes .. £5,842 1929-30. Decrease. £105,702 £2,354 117,118 7,928 £11,416 £5,574 The decreases of revenue, expenditure, find loss compared with the previous year are as follow (except in the case of the Dunedin-Port Chalmers service, where the figures show an increase): — Rev- Expenenue. diture. Loss. Service. £ £ £ Napier-Hastings 874 5,046 4,172 Hutt-Wellington 3,589 5,553 1,964 Christchurch-Midland 774 1,183 409 Oamaru-Tokarahi .. 56 202 146 Dunedin-Port Chaimers (new service) 2,939 4,056 1,117 Total £2,354 £7,928 £5,574