HIGHER RATES SOUGHT

Otago Daily Times, Issue 26629, 27 November 1947, Page 6

HIGHER RATES SOUGHT

CARRYING INDUSTRY CHARGES

BURDEN OF INCREASED COSTS P.A. WELLINGTON, Nov. 26. Applications for increases in cartage rates to cover increased costs in the carrying industry were heard by the Goods Services Charges Tribunal comprising Judge Archer (chairman), Mr M. Wilson, and Mr A. C. A. Sexton. The applications were brought by the New Zealand Road Transport Alliance, the New Zealand Carriers’ Federation and the Rotorua District Licensed Carriers’ Association. They related to the carriage of goods in all rates and schedule areas in the Dominion. On behalf of the alliance and federation Mr H. J. Knight said the applications were for general percentage increases on all rates sufficient to cover the increased costs brought about by the current wage increases pronounced by the Court of Arbitration. Mr H. C. Campbell, accountant to both organisations, gave evidence of the effect of the wage increases on the industry. Costs for area operators had increased since October 1 by 3.65 per cent, and those for town carriers by 4.45 per cent. He said that at the present flat rate of depreciation on trucks allowed by the tribunal it would take 18 years to “write off” a vehicle bought at to-day’s prices. The depreciation factor was one of many which precluded the industry being in a position to carry the burden of increased costs.

The applications for increased rates were objected to on behalf of Federated Farmers by Mr F. O. R. Phillips. He submitted e,that only about onethird of the 9000 trucks at present licensed in the industry had been bought at contemporary prices and he considered that the industry could absorb the general increase in costs. The tribunal reserved its decision. It will sit to-morrow to consider an application by the Wellington District Owners. Breeders and Traders’ Association for a fixed schedule of charges to operate from each racecourse in No. 2 Licensing District.