ROAD AND RAIL

Evening Post, Volume CXVI, Issue 102, 27 October 1933, Page 8

ROAD AND RAIL

TRANSPORT SERVICE

COUNTRY'S PROBLEMS

POSITION REVIEWED

A reaflirmation of the belief that tlie stabilisation of the transport industry on' an economic basis can only be attained by the principle of judicial action to settle differences in tho industry aud in the relationships of the industry to the public is expressed in the report of tho Government Railways Board presonted to. Parliament today. Commenting, upon co-ordination of rail and road transport, the report points out that the majority, of applications dealt with in 1932 under tho Transport Licensing Act were of the automatic class, and- accordingly the consideration of these services on their merits could not take place until tho second licensing period, which in the North Island commenced ■in March, 1933, and in the South Island in. September, 1933. "That does not mean that the public or the operators did not derive any benefit from the operation of the Act during the first licensing period," tho report states. . . "Some measure of stabilisation in the transport industry was obtained by reason of the fact that new services could not bo commenced unless the licensing authorities were satisfied that* tho proposed services were necessary or desirable in the public interest. Licensing authorities found it desirable in the- public interest to alter the time-tables of road services in some cases to prevent un-nccossai-y overlapping of services, whether of road or rail. With the same object they, in some cases, eliminated certain trips, while in a number of instances the fares to be charged by road operators have been raised slightly so that their services might be placed upon a somewhat fairer competing basis with the railways or with other road services. For example, the shorter-dis-tance road services, with frequent timetables have generally been afforded fare-protection against long-distance services. The reason for this is, of course, that the short-distanco service is recognised as essential for the needs of the district to which its activities are confined, whereas the service rendered to that district by the long-dis-tance operator is,merely incidental to his main object -of ■ linking distant points. Similarly, where the essentiality of the railway has been recognised, some degree of protection in the matter of fares has been afforded in a number of cases. APPEALS. "A number of appeals to the Transport Appeal Board wero made from the decisions of tho licensing authorities, some being lodged by road operators and others by the Railways Board. In a very few cases did the board press for the entire elimination of road services running parallel with the railway. The board's desire with respect to the regulation and control of road transport is to bo reasonable and broad in its representations, while at the same time contending firmly for tho proper application of the principles of the.Act; and its representatives before the licensing authorities have acted in accordance with such desire. The board, as it conceives it to have been its duty, firmly opposed the running of roadservice trips that were duplicating and therefore in wasteful competition with passenger and express trains or with existing co-ordinated road and rail services, and, in essentials, its attitude has been sustained by the '^Transport Appeal Board. In these appeals every phase of the public need was examined, including the requirements of intermediate passengers',as well as of through passengers and those travelling by connecting services beyond the termini of the services being considered. Where road-service trips were eliminated it was shown beyond all question that the quantum .of public convenience and necessity associated with thoso trips was small, while, on the other hand, a preponderating degree of service was being given by the trains or other road service which the disputed trips duplicated. . "A point tho board wishes to bring out is that when decisions arc made by the transport licensing authorities ft becomes tho board's duty to adjust the business of tho railways as far as practicable to those decisions, and this process of adjustment has implications which the board feels may not be fully understood or appreciated. In the case of the suburban traffic in tho Auckland area, for instance, tho board finds that by tho duplication of the transport services by railways and road vehicles the traffic has largely fallen in the way that the road services are catering for. and attracting tho higher-faro traffic while the railways are being loft with tho lower-fare traffic. Investigations which the board,has made show that with the traffic divided as at prosent if the- board could cease entirely to cater for suburban traffic in tho Auckland area a substantial improvement in the railway financial position could bo made. There is, however, grave difficulty in the way of making such an adjustment. It would not be difficult to visualise tho disturbance that would result from a decision of the Railways Board to ceaso to eater for the suburban traffic, but it can be doubled whether it is appreciated that ono type of transport—namely, tho road service-—mainly has the profitable traffic while the other type of transport —namely, tho railways—is expected to cater for tho traffic which involves losses: This is an apt illustration of a point connected with the- transport industry that is too often overlooked— namely, that it is an economic impossibility to divide transport into ; water-" tight compartments. Some portions of transport service- that aro considered to bo essential to the community, such as the transport of workers - between the suburbs and tho cities, cannot be directly' remunerative to the transport operator. The operator should, however, by having opportunities of making profits on other types of traffic to counterbalance his particular losses, be able, on the total, to obtain such a remuneration as to justify his continuing to operate. Especially with a publiclyowned service, discontinuance of operation, in circumstances analogous to thoso of the workers' suburban.traffic, scarcely enters into the public mind aa a practical possibility. Tho object of the board in its present comment is to bring out the significance of these facts in relation to the service-value of the railways, and to the financial results which the board has been able'to achieve during the past year and which it may be ablo to achieve in the years to come. STABILISATION. "In concluding its comment regarding tho Transport Licensing Act the board desires to reaffirm its belief that' tho principle of judicial action to settle the differences within tho transport industry and in tho relationships of tlifl industry to tho public is the .only one that holds put any reasonable hopo of attaining the desired objective—namely, the stabilisation of the industry on an economic basis, Accordingly, the bdard holds that to tho extent that the licensing authorities are allowed to axid do function in a judicial way progress will bo maintained and that the contrary proposition holds with equal force. The board has, in its approach

to the work in which the railways have been involved in connection with the operation of tho Transport Licensing Act, steadily pursued tho policy of giving every possible assistance to the licensing authorities to develop a set of principles, founded on the Act, which will bo logical and consistent. In that way only can disputes be prevented, for it is plain that, as _ with law in general, the best preventivo of disputes will bo to make it possible for thoso involved theniselves to know the principles on which the judicial authorities will act, thus enabling tho parties to really make their own decisions without the necessity of resorting to the tribunals. Tho board is deeply imbued'with the absolute necessity, while the tribunals aro maintained as purely judicial and function accord ingly, of respecting and endeavouring co enhance the judicial status and dignity of tho tribunals. In tho pur suit of this policy tho board has steadfastly refrained from indulging in anything savouring of propaganda directed towards influencing the tribunals in their decisions either in a particular case then under notice or in any subsequent action the tribunals might take. The board has noted with regret that this policy has _ not been universally pursued; either in the industry itself or by others who may, directly or indirectly, have interests affected by decisions of the tribunals. The board cannot ■ too strongly doprecato such action. It believes that it is not calculated to expedite in any way the attainment of the objective which was in view when tho Act was passed, and it thinks that any' such line of action as has been described herein is out of place and to be as strictly avoided as any attempt that may be mado by propaganda or other extra-judicial action would be if directed to the functioning of tho Supreme Court or any of the other established legal tribunals of tho.Dominion. The board desires to repeat and cannot too much emphasise the opinion that, to tho extent that the Transport Act is based on tho principle, of judicial action', no better method can be devised for meeting tho problem which the Act was designed to meet; and in all tho comments that the board has heard in criticism of tho Act it, has not yet found any. suggestion of any. better method by which tho same objective might be reached."