ROAD V. RAIL

Te Awamutu Courier, Volume 53, Issue 3826, 28 October 1936, Page 5

ROAD V. RAIL

LICENSING OF GOODS SERVICES. NEW REGULATIONS. RESTRICTION OF COMPETITION In a statement the Minister of Transport, Hon. R. Semple, has announced tnat the regulations dealing with detailed procedure for licensing ot goods services would be gazetted shortly. “These regulations,” said Mr Semple, “have been circulated in draft form to all interested parties and all suggestions and recommendations have been carefully consideered. “In addition to the general administrative provisions,” said the’Minister, “there are several important conditions to which I wish to make special reference. In the first place the regulations provide that goods operators must accept for transport any goods offering, and, as a matter ot policy, it is proposed to giant much wider areas to the licensees. This will mean that the road services will be less restricted and have more flexibility. In order, however, that uneconomic and undesirable competition may not develop between load and rail services, it- is provided, in all area licenses that where there is an available route for the carriage of goods which includes at least thirty miles of railway, then the goods must be carried by rail. This condition will not apply to certain perishable good's or Ao route licenses. “The hours of work and rates of pay for all drivers of goods-service vehicles are also covered by the regulations, as the Government considers that labour conditions in the transport industry at present most unsatisfactory and must be improved. “In addition, the regulations provide for the inspection of all goodsservice vehicles once every six months. I regard this as another step along the road to safer highways and feel sure that it will be generally accepted as a reasonable provision.” Mr Semple stated that the- question of those goods services licensed to operate for long distances over routes parallel to the railways was of considerable importance. These services were not covered by the “thirty-miki restriction,” and each case would be considered by the licensing authority on its merits. If, however, the authority, after hearing the evidence, came to the conclusion that, having regard to the services provided by railway for the carriage of goods, the road service was unnecessary or undesirable in the public interest, the licensing authority would give its opinion lyBUYING OFF COMPETITORS. “However,” continued Mir “Semple “both the Primel Minister and myself have stated time and time again that the Government would not deal harshly or ruthlessly with any licensed road operator.. In order, therefore, that no undue hardship should be caused, arrangements will be made to enable the service to be continued for a term so that the operator may negotiate with the Railway Department for the disposal of his plant and equipment.” The Minister 'indicated thajt the purchase price to be paid by the railways for any service acquired would be on similar linos to those on which the department has already purchased a number of road services. No allowance would be made for goodwill and the price of the vehicles and other property would be assessed on the basis of there being an available market and a willing purchaser. :If it is not possible for the operator to agree with the Railway Department 'as to price, thd infatter will be referred to the Licensing Authority for decision. The Minister stated further that, with respect to employees in these road services the Government had taken dteps which, he hoped, would enable regular employees in road services that are refused renewals in the circumstances already outlined to be placed in other employment, and that should it become necessary for any of these men to move to another locality for the purpose of taking up new employment the Railway Department would arrange to provide the necessary railway facilities. “I think everyone will admit,” con-' eluded Mi’ Semple, “that the policy outlined will materially help in the I co-ordination . of land transport without inflicting any undue hardship on any section of thei community.”