H.—4o.

practically impossible to have formed a basis for fixing charges, except on the purely empirical data submitted by operators in support of the charges they asked to have fixed, while the lack of experience as to the effect on industry and trade emphasized the necessity for further investigation before embarking on charge-fixation. The combined effect of this factor, together with the fact that, during the first year at any rate, competition will be in existence, and, further, the fact that steps could be taken at short notice to meet cases where, owing to competition ceasing to be effective as a result of the licensing system restricting the number of operators to a very small number with defined and uncompetitive areas, or to combination amongst operators, was a decision to refrain from fixing charges during the first year, except in these cases. In the meantime, the Department is carefully investigating the question of operating-costs throughout the Dominion, and the effects of charge-fixation on industry and trade, and other transport facilities. The fixation of charges for the carriage of freight on motor-trucks would probably have farreaching effects on the competition between these services and rail and coastal shipping services. In the case of both the latter services the rates are fixed by the Railways Board and by the various shipping companies, and it will remain to be seen whether the fixation of charges on motor-services under the Transport Licensing Act will confer an undue advantage on the rail and shipping services where they compete with road-services. (o) Insurance. Section 48 of Part 111 of the Transport Licensing Act provides that Licensing Authorities may prescribe the insurance cover to be carried by licensees in respect of their liability for loss or damage to any goods that may be conveyed. In view of the relatively small number of operators who carried insurance, it was felt that it would be too drastic a step to make insurance compulsory in the first year. An examination of the applications submitted for goods-service licenses revealed that 10 per cent, of operators carried insurance to cover their liability in respect of damage or loss to loads, while 90 per cent, carried no insurance. The whole question of making insurance compulsory will be carefully investigated U-fore the next rclicensing period. (p) Number op Applications received. Details regarding the applications received for goods-service licenses are shown in Table No. 21 in the Appendix hereto. Altogether, 2.n ( .i<> applications have been made for continuous (2,018) and seasonal (72) goods-service licenses, covering 3,128 vehicle authorities, indicating that, broadly speaking, the Act will ultimately embrace between 3,000 and 4,000 trucks. l ; p to the end of August, 1933, 340 temporary licenses had been granted. (</) Temporary Goods-service Licenses. It was recognized that many temporary goods-service licenses would be required, and in order to facilitate matters arrangements were made with the Posi and Telegraph Department whereby the various Postmasters would act as agents for the Licensing Authorities in the issue of the licenses. Carriers can make application to the nearest post-office, and can ascertain in a few minutes whether or not a license will be issued. This enables the licensing machinery to work with a minimum of disturbance to the ordinary course of industry and trade. A certain amount of misunderstanding has arisen in connection with temporary licenses, some carriers being under the impression that if they are refused a continuous license they can obtain permission to run by securing a series of temporary licenses. This is not the case. The temporary licenses are controlled by the Licensing Authorities that control the grant or refusal of continuous and seasonal licenses, and are for the purpose of meeting that class of haulage work which cannot be appropriately covered by the latter. (r) Fees. As in the case of the passenger licenses, the fees were fixed to secure sufficient revenue to meet the cost of administering the Act in so far as goods-services are concerned. The following figures show the scale of fees payable : —

C. TRANSPORT CO-ORDINATION. In the administration of the Transport Licensing Act, passed in 1931, it has been demonstrated that the licensing machinery is proving effective as an implement for rationalizing and improving the efficiency of public motor transport. Ft has become clear, also, that in its present form this machinery will not provide a suitable means of ensuring that all forms of transport will Function in the spheres

18

Per Vehicle Authority. Kind of License. Payal n Application. Total - £ s. d. £ s. d. £ s. d. Continuous .. .. .. 200 100 300 Seasonal .. .. .. 10 0 100 200 Temporary .. .. .. 026 .. 026