MANY REFUSALS

Dominion, Volume 28, Issue 90, 10 January 1935, Page 10

MANY REFUSALS

Licenses For Road

Services

AUCKLAND DECISIONS

“Competition Inequitable” By Telegraph—Frees Association. Auckland, January 9. 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 bv the lodgment of appeals, these decisions will take effect immediately. If appeals are lodged the services affected mav be carried-on as under the old licenses until the appeals are heard. They were delivered to an Interested group by the chairman of the authority, Mr. J. A. C. Alluin. Some of the services affected are long established and conducted by large transport firms. They operate between Auckland and such districts as New Plymouth, Otorohanga, Hamilton, and other Waikato centres, Ilauraki Plains, Thames, and Tauranga. Out of 29 applications that came before the authority only three Were granted outright. These concerned two services for transport of stock between Hauraki Plains and Auckland, and one for the transport of bulk petrol between Auckland and Rotorua. Thirteen were declined, and in the case of the other 13 their route licenses to Auckland have been declined, but they have been granted a license within their own restricted areas. “No Other Conclusion.”

“We can come to no other conclusion than that the competition of road services under our consideration is inequitable, and if allowed to continue ’will seriously affect the operation of essential railways and shipping services,” said the chairman. "We are impressed by the great increase in volume of goods carried by road, increases which obviously pare not accounted for by a normal increase in general business. ' ■ “Wo are of opinion t-hat it this continues the time must soon ’be reached when in the case of the railways the taxpayers will be called upon, to meet greater losses or the whole incidence of freight rates must be brought under review. It is reasonable to assume that such review would result in high rates being reduced and low rates being increased. This would have a very harmful effect on farmers, and industrialists of the country any! be against the public interest. “All that Ims been shown to us is that certain services cause convenience, and in some eases cheapness,” continued the statement, "and we can find nothing in the Legislation which allows us to grant licenses on these grounds alone. The evidence shows clearly that all the districts under review are served adequately with reasonable speed and cost by railways and/or shipping services operating in conjunction with local carriers. “In no case was it shown that, if road operators ceased, the district served would be left without adequate transport at reasonable cost. If we could find that the community can afford not only the existing essential railways and shipping services, but also another alternative service, then we might further consider the question of granting applications. "The evidence submitted does not, however, show that the people can afford such an alternative service, but on the contrary County Councils have told us that they are having difficulty in finding money for maintenance,, and we cannot ignore the heavy railway losses which are born by the taxpayer.” ___________