ROAD AND RAIL TRANSPORT

Hawke's Bay Herald-Tribune, Issue 190, 28 August 1937, Page 15

ROAD AND RAIL TRANSPORT

-Fftsii Aiibeiatiaii.)

RenCwals for 12 Months Oiily "KEY" INDUSTRY

(Bjf TelesrdCh-

AUCKLAND, Lact Ntght, A prediction that withia. 12 atonths ihe "business of carrying goods between the pfificipal cities and towns of ihe Dominion will be eonducted under single ownership conditions Was made by Mr. H. C. Couch, diatriCt traffle toanaget of New Zealand Railways at Auckland, When & nUEUber bf applications for the renewal of goods service licenses were before No. 1 Transport Llcehsing Authority, Mr, E. J. Phelan. The Authority pointed out that shorta&ted licenses had previously becn givftn to operators to enable the Rail,wnys Department to negotiato for the fcurchase of their services and undor ihe existing conditions the operators had no sense of security. Ke stressed ihe desirability of tthe department jfcxpediting its negotiations for pur« iehases, so that the fate Of various ser« jyices would be determined once and for i»U. \tr. Conch suggested to the Authority that the lieensos be renewed for a iperiod of twelve months only,- In a jsanmber of cases, in making certain jsubmissions on behalf of the Minister iof Railways, Hon. D. G. Sullivan, Mr, jConch said that, as the Authority Was »ware, the Govemment had invited a jnnmber of goods service ownera to megotiate with it for the sale of their service bnsinesses and had set up a (Complete purchasing organisation fot ithe pnrpose. In conneetion, he referjrfid to a jfrecent statemcnt by the Minister of ITransport, Hon. R. Semple, in regard to ihe need for the cO-ordination oi jyarious transport services to eliminate fMtstd and reduce the cost of transport: aho Minister had stated, he said, that jthe Govemment was convinced that, so jlOng as road freight services wero run ks small nnits wholly independent of ihe railway freight services, little Or no brogrees in real and effective co-ordina* jtton wai possibie, He aiso contended that ihe poiicy 6i single ownership of freight road and raii services over loog distanoe routes was hased on iound ocomomic gfoundS, and made tt clear that the GavernMOiit regsrded all transport services as the national "fceyH induStry iii the Dominion, Mr, Bemple had furthet stated jthat ihe purpoBe of the new policy vras to paeke Toad and rail services over ik« toortant long-distance routes running jottt from the four maia centres eom\plementary rather than competitive taad $0 we{d them into an efficient service. The result wottld be a reduetion. in truck mileage and vrear and tear on the roads without any diminution in the stacdard of iervice ioffered, and busineiS'men migkt rest jassnred that the new policy would imean a reduetion in the Dominion 's jnational overhead and transpoft costs. "At the present time, ' * addcd Mf. {Conch, lt negotiations are in train for {the pnrohase of a number ' of services !Of jthe clees to which the Minister of jTransport refers, and by the end of the 'currcnt licensing year the position Will jbe vCry dbterent from what it is to-day. By that time the business of carrying goods between the principal cities and jtoWns of the Doiniaipn Will be conducted nnder Single ownership conditions, and tiiis is the censideratioh which, it is sabmitted, ought to be taken into accbunt aa relevant to the present renewal applic&tions. It is submitted jthat it is not reasonably praeticable for any licensiflg jauthority io estimate the estent jto ■which the proposed service is necessary »r desirable in the public interest eaccpt so far as the present date is COncerned. It is thonght that oven at the present dfcte it Could be.shown that the continued operation of services as at pfCEent conducted is unnecessary and Undtairable in the public interest. "Nevertheless, it is conceded that, as the eystem of goods services operating nnder single ownership conditions on the principal routes is new, it is desirable to perinit the service to continue to operato for a further year to the end that at the expiry of the liCense the transport position on the route or between the points affected may be rcviewed in the llght of the conditions obtaining at that time. Under the new system the term for which any license toay be granted by a licensing authority (up to a maximum of three years) 'lies entirely witMn the discretion of ■the licensing authority. 11 A licenso for a term of throe years is not calimable as of rlght by &a tpplicaht. Accordingly, it is^subhlittod that, in view of the consideratioas outliaed, applieants' licenses ought not to be renewed beyond May 31, 1938.^ The first of the applicjttion ealled was that Of L. Marinovich and Sohs, for whom Mr. A. H. Wilson appeired. He stated that it was uhuiual for the Govemment to oppose such applicatlons, and he wanted to know if the Authority would give effeet to the reicommendatipns of the Railway Departjment and not renew the licenses for longer than 12 months. Mr. Fhelan said he had had a statement from the department before him and had given it serious consideration. . He Was endeavouring to carry out the intentionS and policy of the GoVernjment, but he would like the Hailways •Department to deai with the present application as urgent and dispose of it once and for all. Each case Wbuld bo dealt with on its merits, and in the case of Ii Marinovich and Bons, the license would be renewed ia the same terms as formerly for a perlod of 12 months from thfe date of expiry of ' the old license on June 3 last.,; dCcision will apply in your . -«