TRANSPORT POLICY

Hawke's Bay Herald-Tribune, Issue 151, 14 July 1937, Page 10

TRANSPORT POLICY

Government Proposals Show No Savings "FOR SOCIALISM'S SAKE" According to a xocent cxrcular sent out from the Transport Department to a group of goods motor serviee operators, it is the policy of the Government to expropriate immediately some 50-odd of the present private tnansport opera. tors, with a view to furthering its policy of single ownership on routes competitive with the railways. In a statement issued the New Zealand Eoad Transport Allianco, Wellington, says to sonie the policy may appear in tho light of a co-ordination or economy measure, but when it is looked into more closely it becomes evident that little if any economy can be derived from such a policy as far as the Dominion as a whole is concerned. •'If there is any restriction on the road of motor services in favour of the railways there is bound to be a deterioration in the intensity and quality of tlie service at present available to tha consumer," the statement continued. '' If the Eailway Department, which is not at present adequately equipped for this work, decided to undertake it, it will have to provido staff, equipment and other facilities, which will be an extra cost to the department. However the work is done, if it is done, it must be paid for, and there can be no saving except at the cost of a deterioration in quality of the service, and that is no reol saving at all. "If the private motor services are driven off the roads there will be in. direct losses to face of no inconsiderable amount. There will be the loss of the taxntion. direct and indirect, at present paid by private motor services, and the indirect loss that will be entailed upon the motor, body-building, oil and petrol industries. When account is Also. taken of petrol and tyre tax, Customs duties. license and traffic fees, and Unemployment taxation, the benefit to the State through incrcased not earnings of the railway systern becomes very shadowy and unsubstantial indeed. 1 "If the motor services are run off the roads, what is to become of their staff s? It is stated that these men are to bo absorbed, but where and when, and at what wage? When these faetors are taken into considcration, it is obvious that the case for a forced monopoly of transpoxt does not rest on economy or efficiency. Tt is jnst part of the present policy oi' socialism for soeialism's sake, and can be dcfended on no other ground."