Increases in Road Transport Rates Approved

Manawatu Times, Volume 69, Issue 62, 16 March 1944, Page 5

Increases in Road Transport Rates Approved

SOME NOT CONSIDERED SUFFICIENT WELLINGTON, March 15. Decisions by the Goods Services Charges Tribunal and approved by the Minister of Stabilisation effecting increases in road transport rates ranging from 24 per cent, to 15 per cent, in several districts have recently been released. Particulars of these decisions are summarised as follows: South Auckland, 5 per cent, increase; Manawatu, 5 per cent.; South Canterbury, 2J per cent.; Northern Hawke’s Bay, 15 per cent.; Wairoa, 1 per cent.; Bay o! Plenty-Whakatane area, nil; Rotorua, Tauranga and Taupo, 5 per cent.; Opotiki, 12A per cent. Interviewed, the secretary of the New Zealand Road Transport Alliance (Mr. H. J. Knight) through which body applications for increases were made, stated that they were long overdue to meet cost increases since 1938. The four main items that made up approximately 70 per cent, of transport operating costs had increased since 1938 as follows: Petrol, over 50 per cent.; tyres, over 200 per cent.; wages, by 20 per cent.; repairs, nearly 50 per cent. These cost increases had been borne by the industry for four years prior to thß stabilisation date and nearly six years to date. While it was admitted that better con trol of traffic and coordination within the industry had taken care of some of the increased costs of operation, this factor had also been taken into account in the present increases announced which in some districts were not considered adequate. The industry was very concerned at the omission of con tract rates (cream and bobby calf) from tho decisions. A feature of the decisions was that they were referred to the Minister oi Stabilisation who apparently decided upon the method of direct increase tc the user rather than by subsidy and also vetoed retrospective payment to March 1943, which was recommended by the Tribunal. Despite the wide areas affected by the decisions there were still greater areas awaiting consideration and there was grave concern throughout the industry at the intolerable delays in remedying injustices. Production without transport would be useless, concluded Mr. Knight, and there was urgent necessity to place transport on a proper economic basis to ensure its continuance as an essential public ser vice.