CO129-582-7 Taxation 6-6-1939 - 5-2-1940 — Page 164

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this suggestion.

165

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Is this 2. Taxi's

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(c) Utility Companies.

As regards the telephone

Company, their present franchise is unsatisfactory both

to the Company and to the Government, and the Committee

suggests a revision which would remove features objection-

able to the Company and at the same time secure higher

royalties for the Governemnt.

The Gas and Electricity Companies enjoy

monopolies of fact but not of law: they pay no royalties

to Government and their charges are at present unregulated.

The Committee consider that their monopoly should be

made a legal one, that in return for this they should pay

royalties to Government and might reasonably be required

to submit to a regulation of charges. As a basic

principle the Committee recommend that royalty should be

calculated with relation to the profits in excess of

some agreed minimum return on capital.

The Committee recommend the conversion of the

taxi services plying for hire on the streets into

monopolies on public utility lines, paying royalties to

Government. Some increase in the licence fees of public

vehicles not plying for hire on the streets would then

probably be necessary in order to maintain equality of

treatment between them and the taxis. It is proposed

to await public reaction before any action is taken on

this recommendation.

?bn

As the royalties paid to the Transport Companies

are already tending to increase, (the tramways will be

paying 25 per cent of their working profits in the near

future), the Committee recommend that the present

arrangements should be left undisturbed.

In the absence

of

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