TRANSPORT MONOPOLY

Rotorua Morning Post, Volume 2, Issue 306, 20 August 1932, Page 3

TRANSPORT MONOPOLY

MERELY A BOOSTER FEAR THAT WHOLE SYSTEM BEING GIVEN TO RAILWAYS. FEELING IN CANTERBURY Christchurch, Tuesday. The fear that th'e Transporl Board, in conjunction -with the Railway Department, is laying down a policy which wiil result in the creation of a virtual monopoly of transport in the hands of the Railway Department, to which expression was given hy Mr. E. Hay, president of the Canterhury Sheepowners' Union, is a fear that is eausing considerable apprehension in Christchurch. Men who are interested in the matter were agreed to-day that Mr. Hay had voiced a timely warning. "It is becoming apparent," said Mr. R. W. Morgan, "that the Transport Act is heing used to bolster up the railways. The regulations regarding buses pretty well go to prove this. We are no longer surprised with the suggestion that there ought not to he any motor lorries or motor cars in competition with the railways. The chairman of the Railways Board is even now objecting to ports and harbours competing with the railways. It was indicated in North Auckland a while ago that he would like to see some ports shut up for the benefit of the railways. "There is no country in the world, prohably, where motor transport is more vital to the welfare of productivity of the country than New Zealand. It is an established fact and it cannot be refuted that the dairy industry in the North Island is absolutely dependent on the unotor truck. The wheat industry in Canterbury now is almost vitally dependent on it, and by the use of motor trucks farms a long way removed from the railway can grow wheat profitably, whereas they could not do that if they had to eart their produce with horses. In view of the low prices that farmers are receiving now for wool and fat lambs, it is essential that no further taxation or restriction be put on the motor truck for the transport of these products. "The Government does not interest itself in how many drapers, grocers, fruiterers, or people in any other class of business there may he in competition, but where transport businesses are started in competition with the railways the Government is seeking means of restricting the transportation and making regulations which make it more difficult for the owners of these transport businesses to operate. Over Capitalised. "The Chambers of Commerce from one end of New Zealand to the other have been complaining for years about the Government interfering with private enterpi'ise, but the Transport Act gives the Government power to make restrictions and regulations worse, I believe, than anything that has ever been perpetrated before. "I think it is an established fact tha the railway system in New Zealand is over-capitalised. There are miles of political railways which will never earn interest. The cost of building them has been too high, and the writing-down of these losses has got to come some day. It is no use trying to restrict private enterprise to bolster up this system. Surely the motorist in New Zealand is entitled to a little consideration, when it must be acknowledgied that many good eoncrete and bitumen roads have been built hy money subscribed by the motorist out of petrol and tyre-tax. "When these roads have been built, why should motor cars and trucks and buses be restricted from using them? A heavy duty motor truck pays an annual license of up to £75, and in addition to that there is a very heavy taxation of the fuel and tyres used." Rights of Community. Mr. A. F. Wright said that there appearec'. to be a very real danger of the activities of the Transport Board operating in favour of the railways to the detriment of the needs of the community. There was no doubt that a large and important question did ari'se that there should not he a wastage to the community through services overlapping, but healthy comp'etition within reasonable bounds must be a good thing. MI think that Mr. Hay has called attention to a potential danger," said Mr. Wright. "While probably there is a need for a Transport Board the exercise of its ver-y large powers will need to be closely watched and the rights of the community jealously guarded. The Railways Board, by its businesslilce methods, is beginning to make its policy felt, but it would be regrettable if the weight of the Transport Board should be thrown upon the side of the railways, as this might eause the improvement which is being manifested to slip hack if the board is 'relieved of strong and healthy competition. "The very wide powers given the Minister of Transport under the transport legislation, and particularly the powers with' regard to making farreaching and onerous regulations should be borne in mind, other wi&s we may find that this department may be building up a huge Government organisation which may work hardship to the community and put a sprag in the wheels of progress." Mr. W. R. Carey thought that Mr. Hay's remarks were timely and that the warning he' sounded was very much in season. If what had been seen already of the working of the Transport Act were any indication of what might be expeeted in other directions there certainly was very strong evidence of that development of the situation that Mr. Hay had spoken about.