THE TRANSPORT PROBLEM

Bay of Plenty Beacon, Volume 2, Issue 185, 12 July 1940, Page 5

THE TRANSPORT PROBLEM

CO-OPERATIVE CONTROL , WANTED EFFORT BY DISTRICT FARMERS Farmers from various districts in the Eastern Bay of Plenty held a meeting yesterday in the County Chambers under the chairmanship of Mr I. M. Withy to discuss the transport problem as affecting the farmer. After an address by Mr Withy -and consideration had been given to the points raised, a committee comprising representatives of the Waimana, Opouriao and Rangitaiki Dairy Companies and the Rangitaiki Branch «of the New Zealand Farmers' Union was formed and this 'committee proposes to get in touch with the Carriers' Association, inviting the latter's cooperation in a system of control of transport arrangements that wiill benefit both parties. y It was stressed that the majority of farmers are not fully : aware of the trend 1 of the present policy regarding transport, ■which in the opinion of the rmeeting would lead rapidly to socialisation. 'Opening his address, the joint convenor, Mr I. M. Withy, said, thai he had been interested in the question of traiisport for some time. He had been the Farmers' Union transport representative in meetings with the Carriers' Association. A deputation had waited on the Dairy Company* said Mr Withy, and it had been decided to call the public meeting, Mr Withy then reviewed the position as presented to the Rangitaiki Plains Dairy Comjpany director si The Political Trend. '"The Auckland Provincial Union "has been investigating the problems 'involved in the transport business for some time,'" he said, "and is very (disturbed by the political trend. "'To understand how this affects transport we have to go back for some time. The Transport Act was actually on the Statute Book before this party came into power but only •small parts of it had been imple;mented/ The present Government has pushed it along tremendously. "First of all the country was divided into licensing districts, with authorities in charge, and licensing ~was proceeded with. That was a very good move as the chaotic state •of transport at that time was notorious, with cut-rate competition affecting both the carriers and the ; users.' 1 ' Concern of the Farmers. Mr Withy, continuing, said that action had to be taken, but the concern of the farmers was the ordered sequence of subsequent acl'ion and the trend of it. Carriers were caused, if not forced, to form associations and tihe authorities for some time had been trying to fix price schedules. The endeavour was to fix these schedules for uniformity over large areas, such as the Tauranga, • Opot r ;ki, Whakatane and Rofaorua -counties, in spite of the immense variations in types and classes of roads and other conditions. It 'was logical to suppose that carrying •could be dorie much cheaper in this flat, well-roaded district than other •counties. Mr Withy added that the Government was also tjrying to force the •carriers into co-operative companies, which would be co-operative •only as far as the carriers were -concerned, taking no cognisance of the users. Carrying Costs Increased. "There is the position," said Mr "Withy. "Carrying is very largely regimented already and if and when the schedules are fixed and the cooperative companies formed, it will be quite simple for the Government to take over the organised transport units." Mr Withy said that already, *n spite of the immense improvement 3,'n trucks, enabling loads to be carried further and faster, and in spite •of the £42V 2 millions spent on the roads of the Do'minion (the major part on rural roads), carrying costs were going up. In the last Transport Board report the number of trucks dealt with had increased by "30 per cent, the increase in revenue •was 35 per cent and the increase In the cost of operation was 37 per •cent.

FEAR OF SOCIALISATION

"With this rise, in spite of the favourable circumstances of better roads and better trucks, it is apparent that it will be no time before the user of transport wil'l object to paying for better roads and dearer transport and with the upward trend in costs the carrier will, just as surely answer the objective by pointing to the higher costs and claim that, far from reducing rates, he will have to increase, them. That will mean a deadlock, with agitation on both sides." Government Control. Mr Withy was of the opinion that when that happened the Government would step in and say, "Well., you people can't agree. Transport must <'o on, so we'll run it!" The socialisation of the means of production, distribution and exchange was the platform of this Government. The theory was propounded as though it constituted t,he order of actilon. Reversing the order, it was seen that the Government already had complete control of all dairy produce and determined the price payable for it. Nearly all prices, bread, milk, fish, etc. were fixed. Exchange was merely buying and selling and the Government would eventually control it all. "Transport is distribution," said Mr Withy. "I have shown the trend there and when that trend reaches its logical conclusion production is automatically socialised because with distribution and exchange in the hands of the Government, where is the producing section?" Mr Withy said that the Farmers' Union was of ths opinion that the formation of co-operative companies was the only solution to the problem, both practical and political. Compulsion Alleged. "If the carrier and tilie user can be brought together, to work harmoniously together, there would be no difficulty," continued Mr Withy, "Somehow or other we, as users of the transport, must get permanently and satisfactorily on-side with the carrier. The carriers themselves very riatnrally resent the position they are being pushed into. "Recently the local Association was addressed by a Government officer and told that they would have to co-ordinate to conserve petrol. Any one refusing was to have his benzine allowance reduced by one third. Now, they arc all ready to conserve benzine and join in the war effort, as you and I are, but they object to the way they are being ordered to, instead of being invited. Feeling is quite high about it." Stating that consultation and cooperation between the carriers and the farmers was urgently necessary, Mr Withy said that in the long run both parties would benefit by getting together. Operating Costs. The speaker dealt with operating costs as affecting carriers. He said that when dairy rates were fixed they were based on 'the average efficient farmer.' "Apparently," he said, "there is no such tiling as an average efficient carrier," Stating that the costs from the whole country were thrown together and then averaged out without any regard for locality effect, Mr Withy quoted figures which showed that the operating cost- in the Cambridge area was B%d per mile; while in the Putaruru district, not far removed from Cambridge, the. cost was ll%d per mile. It was something over lid in the Whakatane County. The average mileage done by trucks in the 1938-39 year was 14,146. For New Zealand the averafge was 14,209. Ifl was obvious from the latter figures that there were tbo many trucks in operation. Not Being Consulted. On tli'e average, trucks were only half employed. 6>ne carrier at a recent meeting in this district had complained tha-k he had three trucks standing idle in his shed. Mr Withy concluded by observing that the users had been consulted when the present i rates were fixed and had helped to frame them. "But according

to what the carriers told us the other night," said Mr Withy, "the Government is sending a man round because it is thought that the charges are too low. We had a say before but we are not being consulted in this.'' Mr CI R.< Wilson said tlhat those concerned had liad to agree to an increase of 28 per cent for bobby calves collection. "Control transport and, you control everything in the country," said Mr Wilson. "It is a dangerous position.™ Further figures were quoted to show that the average profit per Vehicular mile run was 2.33 d anil the average profit per vehicle for the year was £137. lb was pointed out that these figures applied to the 1938-39 year and might not apply now. Co-operation Needed. It was stated that the best way to obviate what was considered, the trend otwards Government control was to get the carriers and the users into one camp. The carrijevs were evidently unaware of the -Government's aim as they were lighting the Government's cause. Should the Government ever step in and take control it would put its own valuation on the businesses it took over. Mr Wilson quoted the case of a carrier who charged a certain price for carting pigs. A Government officer said the price was too low and must be raised; this despite the fact that the carrier said he was quite satisfied with the position and the profit he made from carting at his price. Suggesting that the meeting should form a usersf committc.e ; „ Mr W. A.< McGracken said lie was sure that the carriers would co-operate. He pointed out that the carriers had their own problems. He undei'stood that the Government liad put pressure on the carriers of five counties in an endeavour to make tlieni form one association. The background was political and the Government was aiming to take over the whole business. The users, said Mr McCracken, should be recognfeed by the Government as one party to an agreement. All the carriers wanted was a fair deal and they would probably welcome the opportunity to discuss matters. A Committee Formed. Similar views were expressed by Mr Cleland, who added that nonrecognition was probably due to the fact that users were not combined. The 1 political aspect was discounted by Mr F. B. Maunder, who .'laid that the carriers were the victims of circumstances. To co-operate with the carriers was the only solution. The carriers would welcome the chance to reduce coists if that were possible. * At this stage a committee was formed, the farmers present agreeing that the representation should remain with the Rangitaiki -Branch of the NeAV Zealand Farmers' Union and one representative from each of the three dairy companies, As formed, this committee com* prises 'Messrs I. M. W. A. McGracken, Richardson, E. C. Haultain and J. A. Mitchell,, with power to add. This committee will now act on behalf of the users in seeking the co-operation of carrying interests, in the belief that such co-operation will redound to the advantage of all concerned.