CREAM CARTAGE CONTRACT

Opotiki News, Volume I, Issue 106, 7 November 1938, Page 2

CREAM CARTAGE CONTRACT

UNECONOMIC TENDER LICENSE REFUSED Al THOKI'J V’S DECISION Tlu* (lec-isK>n ol tlie Iso. i Transport Licensing Authority in connection with tiio application of Air. JL Callaghan, Wailiau Day. for authority to run a freight service in order to tarry out a cream carting contract lor the To Kalia. Co-operative Dairy Co. Ltd. has boon, issued. Thu decision is as follows:

The Authority has given much thought to the application, and alter carotid consideration of the evidence brought forward at Opotiki. the submissions made by interested parties, and the report of the .Department's examining account, he is of the opinion that the applicant’s tender is definitely uneconomic. It would appear that the applicant is depending upon a certain amount of back loading and passenger trade t () make his return more lucrative, but it is pointed out that other services are already operating over this route, so that the amount to lie received from this source is problematical, and difficult to estimate.

The Authority is fully conversant with the Ideality, the needs of the residents and the nature of tin* existing services which have operated in the past under very adverse conditions. Accordingly he feels that the district is already adequately catered for. and that the introduction of a fresh license will impose undue hardship on the present operators. The application is therefore declined.