CARTAGE RATES

Bay of Plenty Beacon, Volume 4, Issue 163, 3 October 1941, Page 5

CARTAGE RATES

PROPOSED NEW SCHEDULE

OPERATORS AND USERS

DISAGREE

The operators and the users fall to agree regarding the proposed new schedule of cartage rates, and lengthy evidence was presented to support the respective cases before Mr P. J. Phelan, No. 1 Licensing Authority, at the lo'cal Court -on Wednesday. The hearing revealed that the carriers suggested an increase in rates of 15 per cent on the 1939 schedule while the Farmers' Union was represented to oppose the increase . * Representing the* Carriers' Association, Mr Potter, stated that the carriers of the Bayi did not agree that one blanket schedule for the Bay of Plenty would be satisfactory unless provision was made for the Association tO' deal with varjang cases. It was also considered thai to be of any practical use the schedule would have to be an "all in" one embracing dairy companies, Government Departments, local bodies and New Zealand road services.

Fourteen months ago an established increase in operating costs of 20 per cent had been met on a 50/50 basis with users bearing 10 per cent and the operators 10 per cent. In the past 14 months costs had increased again by not less, than 20 per cent to be -10/50 per cent) and the Association Avas: agreeable that if usiers. bore 5 per cent of the increase it would shoulder the rest. Tims the increase on the 1939 schedule would be 15 per cent and the carriers' were more than meeting the users. The Farmers' Union representative opposed the increase and 11 also did not favour a "blanket" schedule. He claimed from Government statisticinn's figures that in 1939-40 the return on capital invested by carriers over the Dominion was 11.6 per cent. He suggested that this figure had been established from the carriers' own returns and suggested that they should be able to bear an increase in He agreed that costs had risen since 1939-40, but felt that the carriers were still obtaining a good return. He commented that there should be a full enquiry throughout the Dominion to determine the basic cost of carrying and then a full enquiry should be held. The hearing was. adjourned to Rotorua where it was continued yes-

terday