30-MILE LIMIT

Gisborne Herald, Volume LXVI, Issue 20087, 6 November 1939, Page 5

30-MILE LIMIT

ROAD TRANSPORT RAILWAY ROUTES WAIROA TO NAPIER GISBORNE-MOTUHORA DECISION BY MINISTER A 30-mile restriction on the operation of road transport along the routes of the Wairoa-Napier and GisborneMotuhora railway lines has been fixed by the Minister of Transport, the Hon. R. Semple, in a decision on an appeal made by the Railways Department. Certain live stock is exempt from the restriction.

The appeal was made against the decision of the No. 1 Transport Licensing Authority in July, when certain services were exempted from the provisions of regulations 4 (9) of the transport licensing goods-service regulations, 193 G, licenses being granted for one year with the 30-mile restriction waived.

The continuous goods services of the undermentioned operators were involved in the decision:—C. L. Drager, Wairoa; General Transport Service, Wairoa; R. C. Goldstonc, Limited, Wairoa; H. R. Howell, Wairoa; Peacocke and Sturm, Wairoa; IVI. B. Svenscn, Limited, Wairoa; A. W, Stewart, Raupunga; N. Bluck, Nuhaka; GisborncWairoa Inland Motors, Wairoa; Amalgamated Transport, Limited, Gisborne; T. P. Hogan, Gisborne; W. F. lies, Gisborne; C. W. Kirk, Gisborne; Mclntosh and Brooking, Gisborne; 11. E. Monk, Gisborne; and W. Newcomb, Gisborne.

"For the year ended May 31, 1930, these operators held licenses which, generally speaking, were for the Wairoa County, and in some cases for the Cook and Waikolui counties also, and for tlie route from Wairoa to Napier,” the Minister’s decision staled. Opening ol' Railway

"The present licenses, granted for one year only, namely 1939-40, give or include the right to operate in the Wairoa and Hawke’s Bay counties and in some eases die Cook and Waikohu counties also. As the 30-mile restriction lias been waived, the operators are able to carry goods between Napier and Wairoa and in some cases to Gisborne. The Railways Department has appealed against tlie waiving of this restriction, the appeal holing rendered necessary on account of the railway from Napier to Wairoa having been opened for traffic and time-table services operated as from July 3 last. "I am confronted with two questions; first, whether or not the operation of tiiese services for the carriage of goods by road is now necessary or desirable in the public interest and, second, in view of tlie Government s desire to avoid hardship in the case of individual operators, I have considered tlie effect upon the operators of a decision to limit competition with the rail to the extent permitted by the 30-mile restriction.

Support to Line

"As to tlie first and main question, I consider that the operation of these services would be against the public interest, and in this connection I may recall that the decision to resume the construction of the railway was made on the understanding that the districts concerned would give the maximum possible support to the line; in fact, the estimates of revenue, made in connection with tlie proposal and the subsequent decision to resume construction, were based on the assumption that the long-distance haulage of goods would be done by the rail. Public, statements on tiiese lines were made nearly four years ago, and tlie position has been well known to all interested.

"As to the second question, tlie removal from tlie licenses, subsequent to 1935-311, of restrictions relating to the size of areas, weight of goods, commodities, and of other restrictions including specific limitations upon the number of vehicles that could be operated on tlie Wairoa-Napier route, lias in. general enabled the Wairoa operators concerned to develop very profitable businesses. The steady and in some cases rapid growth in the number of vehicle authorities under the various licenses and the financial returns for each of the last three years show that the operators have Benefited, considerably, and this; 1s due. in oar), to public works activities, including the work of railway construction.

“I[avion regard to the foregoing, and to the creation of new business as a result ot the opening of the line, and also the denVaud lor transport due to the activities of the Public Works Department in various parts of the district, I am of the opinion that, even with the elimination of the right to run right through to Napier, ttie operators will still be able to conduct profitable businesses. Possible Hardship "The question of possible hardship to ttie operators is one which, early in 1937, exercised tile mind of the Licensing Authority, and lias now been carefully considered by mvseli with due regard to the benefits which have accrued to the operators since the matter was before the authority. These, arising as they have done to a considerable extent from Government action, may fairly be set against any loss of route revenue. "I have decided, therefore, that the 30-mile restriction shall apply forthwith upon notice by the Licensing Authority, except that in the case oi Svensen, Limited, the restriction will ) not apply lor a further month so that this firm may have time to re-arrange its operations. This firm, which until October, 1935, had only two vehicle authorities for the Wairoa County and for the route to Napier, lias now five vehicle authorities for general goods, and although now operating extensively in and near Tuai and from Wairoa to Tuai, the firm will find more difficulty in readjusting its business than will others. This, no doubt, will be appreciated by the Licensing Authority when considering any application which may be made in tlie near future by this firm or others for extensions of or alterations to licenses. Lambs and Calves Exempt

“In passing, 1 may refer to the fact that the 30-mile restriction does not apply to lat lambs, cull lambs or bobby calves “The service of Napier-Wairoa-Gis-borne Transport, Limited, which has not been concerned in area work in tlie ordinary sense of the term, will presently be considered separately; in the meantime it will be obvious that this appeal decision is not intended

to permit or facilitate the taking over by that firm of route traffic which tlie operators named herein >are relinquishing. “As regards the application of tlie 30-mile restriction in respect of the Gisborne-Motuhora line, it appears reasonable that the restriction should not apply to consignments of livestock forwarded from Gisborne, Makaraka and/or south thereof to destinations beyond the Waikohu County; tlie restriction, of course, will apply to general goods. The licenses of those of tlie Gisborne operators concerned will be amended accordingly.