DECISION RESERVED

Wanganui Chronicle, Volume 88, Issue 96, 24 April 1944, Page 3

DECISION RESERVED

APPLICATION FOR HIGHER GOODS SERVICE CHARGES RECENT WANGANUI SITTING. Decision has been reserved by the Goods Service Charges Tribunal in the case of Wanganui service operators who applied for an increase in their charges on Tuesday. When the tribunal makes its decision it will have to be submitted to the Stabilisation Commission for final approval. The sitting in Wanganui lasted a full day and evidence was submitted for the Wanganui branch of the New Zealand Road Transport Alliance by a Feilding public accountant, Mr. S. McDowall, who had been engaged by the alliance to survey conditions in the district. Mr. H. C. Campbell, accountant for the Wanganui branch, and the branch secretary, Mr. E. F. W. Gohns, also gave evidence. Mr. Gohns pointed out to-day that no set increase had been asked for but sufficient evidence had been presented to the tribunal for it to know what was really required. There have been several increases asked for and granted since the outbreak of the war and the last one was approved by the Licensing Authority in 1940. “The tribunal’s statutory function is to prescribe rates, and under present conditions it is charged to have regard to the stabilisation policy of the Government and avoid unnecessary increases in costs. Nowhere Is it charged to say that the transport industry is to carry on or attempt to, at a loss,” stated Mr. H. C. Campbell, alliance secretary, at the tribunal’s hearing. The profit must give a margin to cover fluctuations—it must cover a little reserve and must give an additional true profit as a reward and an incentive to the operator. Under present conditions our industries should be going well. Some of them are. Road transport should be. Harder times are to come and an unduly low return now to an essential industry Is a shortsighted and misguided policy.” In his survey for the application, Mr. S. McDowall observed that there were seven fewer vehicle authorities operating during the 1942-43 year which provided the last returns available and as a result, a regrouping of traffic had been necessary. One major factor mentioned by Mr. McDowall was the effect of the control orders on the cartage of all classes of live stock, but more particularly in the case of the fat lamb traffic, as where ever possible such traffic was diverted to the railway. Several other temporary conditions which lead to increased revenue were mentioned by Mr. McDowall, who added that those conditions had already changed and would be reflected by a reduction in the 1944-45 revenue.