The Timaru Herald WEDNESDAY, JUNE 2, 1926. THE BUS SERVICE.

Timaru Herald, Volume CXXIII, 2 June 1926, Page 8

The Timaru Herald WEDNESDAY, JUNE 2, 1926. THE BUS SERVICE.

Sheltering* timidly behind the outrageous regulations enacted under the Board ox Trade. Act, the Borough Council rejected, tire ■whole of the applications for private ’bus licenses to operate in fimam; in other words, the Council has seined an opportunity to establish a monopoly in 'bus transport under the provisions of cm Act pi'csum ably designed for the express purpose of promoting competition, and protecting legitimate business from monopolies. It is interesting to quote, in this connection the section of the Board of Trade Act dealing with the legislative measures provided for the restraint of monopolies and the protection of fair' competition :

20. (1.) The Governor-General in Council may, on the recommendation of the Board of Trade, make, by regulations under this Act, such provisions as ho deems necessary in the public interest for the following purposes.

(a.) For the prevention or suppression of methods of competition, trading, or business which are considered to be unfair or prejudicial to tlie industries cf New Zealand or to the public welfare, 'b.) For the prevention or suppression of monopolies and combinations in or in relation to any industry which are considered to be prejudicial to that or any ether industry in New Zealand or to the public welfare : U’-) For the establishment of fixed or c.illinium prices or rates for any classes of goods or .services, or otherwise for the regulation or control of such prices or rates : (d.) For the prohibition, regulation, or control of differential prices or fates for goods or services, or tlio differential treatment of different, persons or classes of persons in respect of goods or services in eases where the existence of such differential prices, rates, or treatment is considered prejudicial to any industry in Now Zealand or to the public welfare : (o.) For the regulation and control of industries in any other manner whatever which is deemed necessary for the maintenance and prosperity of those industries and tlie economic welfaro of New Zealand. Eventually, we are sure, it, will be shown" that the ’bus regulations so fieriouslv contradict the spirit aud even {he letter of the Board of Trade Acts, that the force of public opinion will compel the Government to amend them. Without the authority of Parliament, the. Government has decided upon a serious interferon co with public liberty and enterprise. Some of the critics are saying that “the effect of the regulations will be to, deprive the public of tlie advantages of the most modern forms of transport and to endow incompetence and dullness in tlio municipal management of passenger transport, facilities.” The decision of the Borough Council is a tacit confession of the inability of a community-endowed service, to survive in competition with private enterprise. It is all very well for tlie Mayor to say that “the Council should not shelter behind any regulations,” but the

cold incontestable! fact remains, that, deprived of tho pro lection of the reg’ulations, our municipally owned bus service has been so badly ran in tho past that it could not survive in competition with private enterprise without inflicting 1 heavy losses on the ratepayers. Moreover, oven with a clear field the ’bus service showed a. heavy loss last year. If the ’bus service is sufficient, as tho Council contends, for tho conveyance of passenger's to or from the district.;; proposed to he served,” what is the explanation of the rush of patronage accorded the privately-owned ’buses, and the widely-expressed appreciation of the enterprise of the private ’bus owners who have provided such quick, mobile, well-conducted, mul cheap services that they have aroused oven tho Omnibus Committee from its placid indifference to the. increasing needs of-the community. The fact of the matter is that, the Council hay. so little confidence in the ’lnis services conducted by tho. municipality that legitimate, competition must be eliminated. The decision of the Council would bo explicable if there were a. danger of private entciprise penalising the community in the event of services being organised along route;; whore no other .service operated. But such a contingency is provided for under the regulations. The licensing authority is given power to decide : (1.) Whether or not a license shall be pa-anted ; (b.) The places to or between which the motor-omnibus, if licensed, shall run; (c.) The route or routes to be followed, the fares to bo charged, the stopping places to he observed, the iinn-tables to be kept, and the maximum number of passengers to he carried ; (d.) The other conditions, if any (including the right to run special trips on special occasions), subject to which the license shall be granted. Thus under the regulations a licensing authority will not meicly fix fares and timetables, and .slopping places, hut routes and termini, and it will have power to forbid the running of ’buses on any route wliiclx it may select. Yet with these drastic powers in its hands, the Council decided to crush private op/ei 1 - prise and deny the community a continuance of the benefits which, it has tasted during the last, few weeks, of legitimate and efi’ieient.ly-eni) ducted private, enterprise. But the unfair privileges gianted licensing authorities— the power to prevent competition with their own services involve heavy responsibilities for the condor 1 , of passenger ;•ervieos to justify the refusal

to license private enterprise. But even on mat score the regulations aro most iniquitous. Not only have the applicants for ’bus licenses who were before the Borough Council on Monday night', no right of appeal, but the Appeal Board—which, by the way, is so constructed that its judgments will always be dictated by consideration, for the claims' of the licensing- -authorities—has no clearly defined obligation to threaten selfcomplacent municipalities (who have refused permission to private ’bus owners, to operate) with private competition if there are any tendencies to return’ to the. careless methods that were allowed before the ’buses came’into the trail sport field.