TRANSPORT INDUSTRY

Evening Star, Issue 22465, 9 October 1936, Page 12

TRANSPORT INDUSTRY

GMITTEE OF INQUIRY lUNEDIH SITTIKG CONTINUED The Committee of Inquiry set up by the Government to investigate the conduct of the taxi and town carriers’ businesses throughout New Zealand resumed sitting in the Council Chamber of the Town Hall this morning. The members of the committee are Messrs P. M. Butler (Wellington, chairman), James Walker (Masterton), and H. B. Smith (Transport Department, Wellington). PARCELS DELIVERY. Mr J. P. Ward appeared for the City and Suburban Parcels Delivery, and called Mr Ralph W. Moore, who said he was owner, with Mr W. D. Greenwood, of the business in Dunedin. They commenced operations some six years ago, when they set out to establish an entirely new business. At that time there was only one other operator specialising in the delivery of parcels. They started with one vehicle and were now operating four. The business employed three men and seven boys. They worked under an arrangement with the various retail stores in Dunedin and delivered parcels to customers throughout the city and suburbs. There were two main sections of the business—(l) an express messenger service; (2) a parcels delivery service. By dint of hard work and the acceptance of a very small return they had made the business grow to a reasonable size. They thought the parcels delivery business in Dunedin was fully catered for, and they viewed with alarm the generally accepted fact that another business was to be commenced with a new fleet of nine delivery vans. It was claimed that the business did not conflict with that of the ordinary carrier, because, as a genera! rule, they did not accept parcels over 661 bin weight. They were somewhat concerned over certain inroads that were being made, into their business. If the business of parcel delivery was to be subject to open competition, then a great deal of money would be lost By persons who had it to spare but who were inexperienced in the particular business concerned. The existing operator, despite his years of work, would be forced to go out of business or to work at uneconomic prices. The circumstances in Dunedin were peculiar because of the rather hilly nature of at least half of the suburban, area. They asked for some measure of protection whereby new people should not bo allowed to start in an already overcrowded industry to the ruination of those already engaged in it. Witness stressed that the business of parcel delivery was one where immediate attention to every order was necessary. Business people and customers alike wished the parcel delivered on the date of purchase. There_ was also the delivery of highly-perishable goods that were urgently wanted, such as floral tributes.

MASTER CARRIERS’ REPRESENTATIONS. James A. Henderson, representing the Master Carriers’ Association, submitted a statement giving the views of the association on transport within the metropolitan area. The association comprised eight firms operating 112 vehicles and active in all fields of transport. The speaker quoted the following figures;—Drivers 101, loaders and foreman 9, storemen and packers 7, clerical workers 60, dependents 253, and wages paid per annum £25,268. Of the 631 licenses issued by the local authority both in respect to heavy traffic, light delivery, and horse vehicles 112 were controlled by members of the association. The general financial position of the industry two years ago was such that it was imperative that some understanding be reached among the different firms to prevent vicious price-cutting. Despite experiences in other centres, the gentlemen’s agreement reached had withstood a severe test. _ The understanding existing within the organisation had gone a long way towards the stabilisation of cartage rates and enabled the various establishments to give better wages and conditions to their employees than was possible in the days of unrestricted competition. Notwithstanding the agreement, however, the position today was still anything but satisfactory on account pf the fact that they had to meet a considerable amount of outside competition which was not based on sound transport running costs. Further, the losses experienced during the depression were so heavy that it would _ take many years to again put their companies and plant in sound order. Under existing conditions the estimated wages to be paid by members for 12 months amounted to £29,125. Competition was definitely excessive, said Mr Henderson. There were approximately 650 vehicles in relation to the population of over 80,000. Secondly, no system of licensing by the corporation existed—in other words, any man could purchase any old type of vehicle, pay £1 fee to the corporation, and be allowed to ply for hire. That was noticeable during the depression years, and the results were such that uneconomic prices were quoted for cartage work, resulting in losses during those years and a serious retarding influence on efforts to bring rates to a payable basis. Owner-drivers had a distinct advantage over transport companies in respect of working hours. With a few exceptions ownerdrivers were of a good class, and would recognise that the movement for control was in the interests of those operators. The owner-driver within his home and depot in the suburbs was an essential part of a metropolitan transport sj-stem. The large establishments were also essential to the cause of transport in the wider sphere, having the necessary margin of plant to meet the varying service demands which were governed by many different factors. The trend of the times was such that definite organisation must, always be available in transport. The following suggestions were submitted ;—(1) That nil carriers in the metropolitan area be licensed. (2) That the license be issued by the local authority and control within that area be exerted by them under the powers which they already possess. (3) That an association embracing all those already licensed be organised, and that membership bo_ compulsory. (4) That a definite minimum schedule of rates be drawn up and approved by the association and the local body, those rates to be observed under pain of cancellation of license, (o) That the financing of the above association would be assured by a weekly levy per vehicle. (6) The advisability of an applicant for a license proving his ability to finance, say, 50 per cent, of the total cost of putting his plant on the road, besides establishing his case from a public necessity point of view. (7) That the exempt area bo abolished and that temporary licenses be issued only to those already operating under the Transport Incensing Act. (8) Hav-

ing regard for the fact that approximately 20 per cent, of the gross revenue from motor vehicles_ was paid in taxation pertaining to their operation, it was considered grossly unfair that the industry should be subjected to tb© competition of the Post and Telegraph Department and local bodies. (9) The association would ask the committee to consider the iniquitous imposition of the heavy traffic license. The committee adjourned till the afternoon, when Mr J. P. Ward presented evidence on behalf of 40 ownerdriver town carriers.