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IIMB Management Review

Document Type

Article

Abstract

In recent years a move towards deregulation, i.e. the replacement of quantity restrictions on the number of licences, on maximum and/or minimum rates, on geographic boundaries of operation etc., by quality restriction on drivers’ qualifications and systems of operation, has become a significant development in the transport policy of many countries: Australia. Sweden, Switzerland,U.K., USA, and New Zealand. The trend was first set in Australia, in 1954 when the interstate freight transport was deregulated. Later on this trend spread to individual states: South Australia in 1968 and New South Wales in 1974. In Sweden a move towards deregulation was initiated in 1963 to be completed in three phases by 1968, with 15% and 20% expansion in capacity per annum in the first and the second phase respectively. The third phase removing all capacity restrictions as well as territorial, commodity and shipment restrictions was postponed in 1968 for an indefinite period and was finally put into effect in 1979, when only the quality control restrictions were maintained (Bayliss 1981, pp 146-163). The U.K. switched over to a quality licensing system from quantity restriction in 1968. After a lot of debate, the almost century old restrictions on freight transport in the USA were discontinued in 1980. The latest in this trend was New Zealand, where the removal of quantity restrictions was legislated in November 1983 (The Transport Amendment Act(no.2) 1983]. This act deregulated the industry in favour of quality constraint. The process of deregulation was to be observed in three phases. The first phase started in November 1983, saw the removal of the control on hire charges and on restriction routes and commodities, and the relaxation of the 150 km limit for road carriage though operators were still required to buy a permit beforehand certain types of goods, to be carried over distances higher than 150km. This limit was removed from 1 November 1986, in the final phase of the act. The second phase which commenced on Ist June 1984, replaced quantity with quality licensing for all operators.

Publication Date

7-1-1987

First Page

142

Last Page

161

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