TRANSPORT LICENSING

Opotiki News, Volume II, Issue 221, 16 August 1939, Page 4

TRANSPORT LICENSING

CARRIERS’ SCHEDULE RATES EXTENSIVE AUCKLAND PLANNING Submitted by the New Zealand Farmers’ Union (Auckland Province). The “Transport News of New Zealand” for last April contained an article headed—“ Tariff Schedules”— “Extensive Auckland Planning.” and stated that on March Ist. the No. 1 Licensing Authority (Mr. Phelan) laid conferred with carriers representatives on negotiations for the acceptance of tariff schedules in the Auckland provincial district. Generally a widespread organisation was indicated and there was prospect for an early adoption of a preparatory provincial scheme. The district set our for organisation first in the scheme was the whole of the Northern territory, excluding the AVaitemata County, with headquarter.; at Whangaivi. On Thursday the 20th. July, following a prior abortive attempt to arrange a rate between the consumers and the transporters, Mr. Phelan brought the parties together to consider transport rate fixing. The North Auckland Dairy Association was represented by Mr. A. ('. Lamb and Mr. It. J). Speer, Accountant. who is the secretary to the Association, while Mr. A. Tyler Davis and many other carriers were present

to conduct their case. Air. A. E. Itobinson represented the New Zealand Farmers’ Union. Air. A. Aielfarlane was present as the representative of the Bay of Islands Carriers’ Association. There was a large assemblage. Air. Lamb opened the case for the users of transport by stating that farmers viewed the question of price fixation with the gravest concern. He stated that the industry was not yet ready for the fixation of prices, and that data was not available to enable a satisfactory rate to be fixed. AiemIvers of the North Auckland Dairy Association were completely and unanimously opposed to price fixation in tiansport. not -conceding that transport at fixed prices was the most economic, either as to cost, or service, That fixation destroyed friendlv rela-

tionship. and that farmers’ remuneration was not fixed on the basis ol costs, while farmers were asked to concede this to other classes of the community. Returns made to the Transport Department were notoriously inaccurate. and even where accurate, not sufficiently extensive to reasonably accurately fix prices. Too great a variation in transport- conditions existed to allow the fixation of a price covering the whole north. Some carriers would, under favourable conditions, reap excessive profits. A basic formula under most. favourable conditions, and allowing for a considerable degree of efficiency, should be worked out. His Association objected to contracts being made through the Carriers’ Association. as this savoured of trusts and combines.

Air. Speer gave evidence regarding the operating costs of motor vehicles, submitting figures relating to the actual running costs of trucks operated bv dairy companies. Air. Tyler Davis, on behalf of the carriers, stated that* the carriers disagreed in minor details with the evidence, disputing Air. Speer’s contention that, the basis of costing should be on an hour rate, as is used in manufacturing businesses. Air. A. E'. Robinson introduced the ease for the Farmers’ Union by stating that there was a. paucity of detailed. information, but that the Commissioner of Transport had been good enough to supply figures of North Auckland transport, though unfortunately these covered returns from 5,000 to '30,000 miles, and districts where, geography compelled running of. more reasonable mileages had been Jumped with districts where muclr shorter mileages' were general, thus defeating analysis. However, a, good deal could be drawn from even such information as he had. He assumed that the Authority would have much more detailed information andi could discover still greater discrepancies. Average figures should not he taken,

—they were unfair to the consumer, Air. Robinson stated, but there were no other official figures to use. The only possible way to bo lair to the consumer was to take returns that were from men who gave a good day’s work for their pay, trucks that were properly looked after, not overloaded and overdriven, tyres that were allowed a normal life, etc. He stated that the driver who* ran SOtXXJ 1 miles in a. year was not doing anything extraordinary, but that the averages for North "Auckland" that- lie had to deal with were less than half 30,000 miles, even in the districts showing the greatest mileage. Coinparing different districts, Air. Robinson stated, that those districts which had higher payload capacity, ran shorter mileages and had newer trucks, novel theless showed higher depreciation, in some cases almost double the depreciation per mile; than districts with fewer advantages. Fronts were greater, and other expensed greater [where the work done vas considerably lo.ss per truck. It is apparent-, he said, that all that- such figr. rings amounted to was the discover y of wliat it cost to do the job, and they were ridiculous as any attempt to show w|jat a job should cost. FixHug rtße.s on'such costs would only ensure that the carriers recovered costs, though, indeedi, on such costing the carriers had been doing remarkably well, the -profits also being greatest when' the work was least. Small turnover did not, mean small profits, the lowest percentages to turnover being earned in the* long mileage districts. Fiofits of cafrying throughout New Zealand had been increasing considerably. They had risen from 10.95 per cent, over operators’ capital in 1934 to 20.03 in 1938, figures which again pioved the deceit-fulness ol averages, as low figures in one district made for higher figures in another and lor still higher figures for individual operators. Taking an extreme ease he showed that a. rate asked for by the Northern carriers of 7/9 per hour and 7d. per mile as fin alternative rate to sehed-

i.led allowances would, if extended over a year, allowing 25 miles an hour to a track, bring its owner in £1212 grcs.s. The consumer was entitled, to have to pay to*- what he obtained, not for the idle tiine in the business. The Authority stated that he would coiisidler the evidence and bring out a Schedule that lie hoped would satisfy both parties.