NO COMPETITION

Waikato Times, Volume 125, Issue 20957, 9 November 1939, Page 3

NO COMPETITION

ROAD AND RAIL SERVICES STAND BY MINISTER (Special to Times.) GISBORNE, Wednesday An indication that-competition with the railways will not be permitted is contained in a decision given by the Minister of Transport, the Hon. R. Semple, on the appeal of the Railway Department from road transport licenses granted in the Gisborne and Wairoa districts. The 30-mile limit, which had been waived by the licensing authority along the routes of Wairoa-Napier and Gisborne-Motu-hora railways, has now been reim- • osed by the Minister. P Giving his decision, the Minister States that two questions had to be considered— first, whether the carriage of goods by road was necessary and desirable in the public interest; second, possible hardship on individual operators. The Minister says he considers the operation of road devices would be against the public interest and adds; “1 may recall that

the decision to resume the construe tion of the railway was made on th understanding that the districts concerned would give the maximum poi sible support to the line; in fact, esti mates of revenue were based on th assumption that long-distance haul age would be done by rail.” Benefits Recalled In regard to the second question. Mr Semple states that operators have benefited considerably by variou concessions and in particular through public works activities in the district including railway construction work. “These benefits,” he adds, “arising as they have done to a considerable extent through Government action, may be fairly be set against any loss of route revenue.”

The 30-mile restriction does not apply to the carriage ol livestock.