ROAD TRANSPORT SERVICES

Southland Times, Issue 23228, 17 June 1937, Page 4

ROAD TRANSPORT SERVICES

PROPOSED PURCHASE BY STATE ALTERNATIVES OPEN TO OWNERS The alternatives offered owners of road transport services which the Government wishes to buy are set out in a circular letter sent them by the Commissioner of Transport (Mr G. L. Laurenson). Mr Laurenson’s circular reads:—

“In connection with the Government’s proposals to purchase the road services and assets of certain goods operators in furtherance of its policy of single ownership on certain routes competitive with the railways, I have to advise that in order to facilitate the negotiations it has been decided to set up special machinery tc arrive at the price to be paid in cases where operators are willing to negotiate for the disposal of their services to the Government.

“If the purchase officers who have been appointed for the purpose of negotiating with the road operators cannot arrive at a price mutually satisfactory to both parties it is intended that the matter be submitted to a tribunal consisting of an independent chairman (Sir Francis Frazer) and representatives of road transport interests and the Government. “MOST EQUITABLE METHOD” “I am directed to say that the Government has decided upon this machinery as being the most equitable method of finalizing the matter in the interests of the taxpayer on the one hand and the road operators on the other. “I should be glad, therefore, if you would kindly advise me at your earliest convenience whether you are agreeable to negotiate on the lines indicated—namely, the question of the price to be paid being decided by mutual agreement’ between yourself and the purchase officers, or failing this, by the tribunal. If you are agreeable to negotiate as indicated herein I should esteem it a favour if you would inform me when it would be convenient for you to meet the purchase officers. “IF NOT AGREEABLE” “If you are not agreeable to negotiate then your case will come under the Transport Licensing Act and your application for renewal will be considered in accordance with the provisions of that Act. . “However, before deciding whether you will negotiate with the Government or proceed with your application for the renewal of your' goods service licence, you are strongly urged to make yourself familiar with the provisions of the Transport Licensing Act in both its positive and negative aspects. This is very important and needs your attention. , , , “Tlie Government ha*. directed me to advise that it is desirous of finding suitable employment for those persons engaged In the road services taken over in accordance with the provisions of this letter, and I should be grateful if you would co-operate in this matter by requesting each of your employees to complete one of the attached forms and forward them with your reply. A form giving answers to be filled I in about the qualifications of the employees is attached to the letter.