LICENSING OF RENTAL CARS

Southland Times, Issue 23838, 8 June 1939, Page 7

LICENSING OF RENTAL CARS

First Applications In Invercargill Number of vehicles NOT FIXED The first applications in Invercargill under new regulations for licences for rental cars were heard by the No. 4 District Transport Licensing Authority (Mr Victor Raines) yesterday. A big number of applications was received, several of the operators asking for licences for considerably more cars than they had been operating previously. Objection to the granting of licences for greatly increased numbers was lodged by applicants who had been in business for several years. The licences requested were granted, but the Authority reserved for further consideration the number of cars each operator would be permitted to hire. It was stated that taxi drivers were interested in the question and it was agreed to await the decisions reached at a conference between rental car and taxi proprietors. At the opening of the sitting Mr W. Grieve, representing Watts and Grieve Ltd., said the rental car proprietors had decided to recommend that no limit be placed on the number of cars because it was a growing business and as it developed the fleets could be increased to meet the needs of the public. The proprietors felt that the business at the present time controlled the number of cars required. The local proprietors did not propose to object to any applications on the score of smallness, but they considered that every applicant should run a proper rental car business. It was a business distinct from the taxi business and should be run separately. If taxi firms wished to operate rental cars they should carry out all the requirements of the law.

“This is a difficult business and unless it is run properly service cannot be given to the public,” said Mr Grieve. The best service could be given through co-operation with the police and the Transport Department. If some firms wdre running a business with one or two cars and not carrying out their obligations to the police and the Transport Department it would mean that there would not be complete co-opera-tion in the business. For that reason he asked that the Authority carefully consider the applications from that point of view. FIXED CHARGES Speaking of prices, Mr Grieve said that rates fixed for other cities might not be suitable for Invercargill. The local proprietors believed they could fix their charges by mutual arrangement more satisfactorily than if rates were arbitrarily fixed on a Dominionwide basis.

“The insurance of rental cars at the present time is a serious problem,” continued Mr Grieve. The insurance companies had stated that they could not continue to provide a cover unless the premium, which had previously been £lB, was raised by 10 per cent. This made insurance rates very costly. An arrangement had been made by his company to create an insurance fund into which a substantial amount was paid by the company. Each hirer was charged a fee of 2/6 a day to cover his liabilities in the event of an accident. He considered that the time was approaching when the proprietors could approach the underwriters for a comprehensive cover for rental cars at a reasonable premium. Mr Raines said that the question of insurance of rental cars was very important. In the event of an accident due to the negligence of the driver of the rental car he would be liable for the damage to the car he was driving and for the damage to the other car. He would also be liable for injuries caused to passengers in the car fie was driving. Tfiird party insurance would only cover passengers in the other car. It seemed that the association of rental car proprietors should be able to arrange for a suitable insurance cover. He understood that a meeting of rental car proprietors would be held in Wellington next week to make recommendations on charges. If the local charges did not agree with the recommendations from the Wellington conference they could be considered further. Mr Grieve said that standardized charges over the whole of the Dominion might cause difficulties. The cost of running cars in hilly cities such as Dunedin was greater than in a flat district. The Authority said that if the proprietors applied to him they could get charges fixed for the whole of Southland. Mr Ernest Bradshaw, who said he had been operating six cars and was now applying for licences for 12, said he believed that the question of insurance would soon be settled. GARAGE RENTAL CARS When hearing the application of G. R. McMillan, of Otautau, garage proprietor, Mr Raines asked whether the licence was sought purely for a rental car for general hire or for a car to lend to clients whose own cars were being repaired. The applicant said the licence was sought for general hire. “The taxi proprietors in Timaru objected to garages having rental cars to lend to clients because they considered this was business they could reasonably expect to get,” said the Authority. The position in Invercargill was that the garages did not look with favour on the practice of lending cars to clients whose cars were being repaired, said Mr Grieve.

When an application by John Pagan, taxi proprietor, of Invercargill, for one car was heard, Mr Grieve said he wished to state a general objection on behalf of the rental car proprietors who considered that all cars should be controlled on the same lines as adopted by general rental car operators and that the law should be complied with. There was no objection so long as the law was observed and proper records were kept. The proprietors wished to assist the police and keep the business as clean as possible. An objection was raised by Mr Grieve and Mr Bradshaw to an application by E. B. Boberg for a licence for 10 cars. The applicant said he had been in the business for 18 months and he had operated one car. Questioned by Mr K. G. Roy, who appeared in support of the application Boberg said he considered there was sufficient demand for 10 cars. He could not cope with the business with one

car. The demand was such that he considered he would be justified in having 10 cars..

CONTINUOUS SERVICE Mr Grieve said his firm had been in the business longer than any other local operator and he knew that to make it pay the cars had to be in service continuously. If the firm had 50 cars it could have hired more than that number during the last holiday week-end, but many of the cars would have remained idle until the next holiday. With the population of Invercargill only a limited number of cars could be operated economically. If the present application was granted nothing could prevent others being put in. The business would then be greatly overdone. The application for an increase from one to 10 cars was exorbitant. . Mr Bradshaw said he was satisfied that there were enough cars operating at present. His return for 1937-38 had been £1374, while for the same number of cars in the following year his return had been £1052, a reduction of £322. In the summer months more cars could be hired, but it would be bad business to have them lying idle in the winter. The applicant said that in the offperiod taxis also were little used. The taxi proprietors considered that they had lost a proportion of their business to rental car proprietors and they were only watching their own interests in applying for licences. Mr Raines said that he had heard applications in all centres from Christchurch to Invercargill.' He had been told of an arrangement made between the Commissioner of Transport (Mr G. Laurenson) and the rental car proprietors that the numbers of rental cars should' not be limited and that all existing operators should receive licences. • However, he had fixed the numbers everywhere because he had envisaged such a position as had arisen in Invercargill. He had adopted the practice of not drastically restricting the numbers, but of limiting them to a reasonable extent. He had placed a limit of 92 cars for Christchurch and 62 in Dunedin. The applications for Invercargill appeared to be rather high. “AU applicants must comply with the law,” he said. The principal requirement of the Transport Department was that the vehicles should be pro-, vided with an inspection certificate. Rental cars were apparently to be brought gradually under the regulations. Charges would be fixed later. Insurance was very important. He considered it advisable to continue the practice of stating the number of cars in each licence. It would then be open for operators to apply for an increase. Mr G. E. T. Dorman, secretary of the Taxi Proprietors’ Association, asked the authority to defer the granting of any licences, other than for cars already registered, until the association had had an opportunity to consider the position. Any substantial increase in numbers would affect the taxi proprietors. It would probably lead to price-cutting and chaos. He had noted applications for more than 20 cars not at present in operation. Mr Raines said he would have no objection to holding over the applications for a week if a conference could be arranged. Mr Grieve said he had no objection to a conference. The fleets would naturally increase as the business increased but it seemed unreasonable to increase from one car to 10.

Applications for rental car licences were granted to the following, the number of cars being deferred: Watts and Grieve Ltd. (Invercargill); Bradshaw’s Taxi and Rental Cars (Invercargill); G. R. McMillan (Otautau); V. T. McKinnon (Riverton), for whom Mr T. V. Mahoney appeared; John Pagan (Invercargill); E. B. Boberg (Invercargill), for whom Mr K. G. Roy appeared; Mr K. Inglis (Invercargill); A. R. Mann (Riverton), for whom Mr T. V. Mahoney appeared; Mutual Rentals Ltd. (Invercargill). ( The following carriers were granted licences to convey sporting teams for limited distances to fulfil engagements: A. J. Bone (Orepuki), G. Black (Orawia), W. G. Lemon (Tuatapere). Transfers of goods service licences were approved as follows: J. W. Paton Ltd. (Invercargill), from J. E. Cocklin; S. and J. Mcßae (Nightcaps) from T. C. Duncan; J. A. McDonald (Edendale), from J. E. Boyd; Bushnell and Tapper (Waimahaka), from G. Bushnell and J. M. Tapper. An application for a transfer to E. W. Frew (Invercargill) from the estate of W. H. Frew was deferred. A licence held by B. R. Luscombe (Toa) was revoked.