GOODS SERVICES.

Star (Christchurch), Volume LXVI, Issue 20509, 10 January 1935, Page 7

GOODS SERVICES.

Many Licenses are Declined. AUCKLAND PROVINCE. EFFECT OF COMPETITION WITH RAILWAYS. Per Press Association. AUCKLAND, January 9 V Important and far reaching decisions abolishing through goods services by road between Auckland and southern districts were delivered by the No. 2 Transport Licensing Authority to-day. Except in so far as they may be delayed by the lodgment of appeals these decisions will take effect immediate!)-. If appeals are lodged, the services affected may be carried on as under the old licenses until the appeals are heard. The decisions were delivered to an interested group by the chairman of the authority, Mr J. A. C. Allum. Some of the services affected are long established and are conducted by large transport firms. They operate between Auckland and such districts as New Plymouth, Otorohanga, Hamilton, and other \\ aikato centres, the Hauraki Plains, Thames, and Tauranga. Out of 29 applications that came before the authority only three "were granted . outright. These concerned two* services for the transport of stock between the Hauraki Plains and Auckland, and .pne for the transport of bulk petrol between Auckland and Rotorua. Thirteen were declined and in the case of the other thirteen, their route licenses to Auckland have been declined, but they have been granted a license within their own restricted areas. “ Inequitable.” “ e can come to no other conclusion than that the competition of road services under consideration is inequit-' able, and, if it is allowed to continue, it will seriously affect the operation of essential railways and shipping services,” said the chairman. “We are impressed by the great increase in the volume of goods tarried by road—increases which obviously are not accounted for by the normal increase in general business. We are of opinion that, if this continues, the time must soon be reached when in the case of the railways, taxpayers will be called upon to meet greater loses or the whole incidence of freight rates must be brought under review. It is reasonable to assume that such a review would result in high rates being reduced, and low rates being increased. This would have a very harmful effect on the farmers and industrialists of the country and be against the public interest,” said Mr Allum. ** All that has been shown to us is that certain services cause convenience, and in some cases cheapness,” continued the statement. “ and we can 1 find nothing in legislation which allows us to grant licenses on these grounds alone. The evidence shows cl earl v that all the districts under review are served adequately with reasonable speed and cost by the railways and/or shipping services operating in conjunction with the local carriers. “In no case was it shown that if road operators ceased the district served would be left without adequate transport at a reasonable cost If we could find that the community can afford not only the existing essential railway and shipping servicesfi but also another alternative service then we might further consider the question of granting the applications. “ The evidence submitted does not, however, show that the people can afford such an alternative service, but on the contrary coiAty councils have told us that they are having difficulty in finding money for maintenance, and we cannot ignore the heavy railwav losses which are borne by the' tafipayer ”