ROAD GOODS SERVICES

Southland Times, Issue 23181, 23 April 1937, Page 7

ROAD GOODS SERVICES

ACQUISITION BY GOVERNMENT FAIR COMPENSATION TO BE PAID (United Press Association) WELLINGTON, April 22. Arrangements for the acquisition by the Government of road goods services competing with the railways over distances of 30 miles or more was announced tonight by the Minister of Transport (the Hon. R. Semple). The Government had decided that fair compensation should be paid where it was found desirable for the Government to take over the services and the following machinery was to be set up to make recommendations about the amount of compensation to be paid:— Two purchase officers to be appointed, one from the Public Works Department and one representing the Railways Department, to negotiate with road operators for the taking over of services. These officers will report the results of the negotiations to a special tribunal consisting of an independent chairman, appointed by Cabinet, a representative of the road transport interests and a representative of the Railways Department. In cases where an agreement is reached between the purchasing officers and the road operator the tribunal will consider the report and submit a recommendation to Cabinet through the Minister of Transport. Where there had been a failure to agree the tribunal will hear both parties at public sittings and report its findings to the Minister. The Government, said Mr Semple, would not pay anything by way of compensation for the monopoly value of a licence, as such, but outside that the Government would pay a fair price for the services taken over.