THE RAILWAYS.

Press, Volume LXI, Issue 18415, 23 June 1925, Page 9

THE RAILWAYS.

REVISED TARIFF.

WHAT BOARD HOPES FOR.

fPEESS ASSOCIATION TELEGRAM.)

WELLINGTON, Juno 22

In ■&/ statement mado to the Press, the chairman of the Railway Board made some remarks explanatory of the Board's proposals as contained in the revised tariff. In the first place it may bo pointed out that practically speaking there has been no comprehensive overhaul or revision of the railway tariff for very many years, although more or less minor revisions have taken place from time to timo, the last being in 1912. As is -well known, many changes have taken place during and subsequent to the wir, in rates and fareß. The increases in salaries, wages, and cost of material, etc., necessitated all-round increases in goods and passenger rates, but the increases given effect to, 40 per cent, and 25 per cent, respectively, -were insufficient to allow of a reasonable margin after interest and working expenses had been provided for to meet the abnormal conditions. In addition, the war impost was removed or reduced in many cases where the circumstances viewed in the light of policy then in operation appeared to tlie Government to warrant such action. The Hon. J. G. Coatcs, the present Minister of Bailways, on assuming the portfolio, inaugurated a very important change in the Department's financial policy, which had the effect of ■placing the Department's operations on a purely commercial basis. Naturally this would have a very direct bearing on rates and fares, and the Minister instructed the Board when formulating its tariff proposals to completely review the incidence of rating on every class of commodity handled so that tho Government would be in a position to see • exactly what effect the past policy has had on the Department's revenue, and whether any change has taken place ?in- the conditions that influenced the Government in granting the numerous 'concessions that have been extended in the past, or whether the existing conditions are such as to necessitate other changes in policy. The Minister further directed that the Board's proposals were then to be submitted to the Department's clients for consideration, and the various alterations threshed out on their merits with the Board. It would then be for the Government to consider all the circumstances and decide on a policy. It will be understood, therefore, that the undermentioned proposals are, based purely on what might be termed the railway economic aspect. ■An examination of the Department's finances indicated to the Board tha+under the new financial arrangement ah additional revenuo approximately ■of £562,000 will bo required for tho current financial year, plus £90,000, representing tho deficit for the" last year on the policy, rate of interest 3£ per cent., making the total additional amount required, roughly, £650,000. •Thia amount is made up_ as follows:

"•' ,> Additional charge in respect •V of subsidy to Superannuate tion Fund . • ■ - 65,000 '' ■ -additional interest at 4J per Hi «7* cent.' ' ... .. 221,70? rji , Renewals, etc. :..- >. 269,100 jJ. Insurances ... , >•• °> so " 1?"'. ""■ '". ',' £1362,300 ■£ Deficit, 1924-25 •.-: ;'" y. 90,000 |,\ "~' : ' ■■'• ■' -■ r £652,300

I Against this there are possible rci coveries from the Consolidated Fuml | in respect of loss on developmental ser- & vices, etc. The rate of interest the |tj Department has now to earn is insi creased from 3} per cent, to 4J pe: r£ cent., which is approximately the averI ago rate on the capital invested. It must not be assumed from the foregoing .that the Board is endeavouring to make ends meet by simply increasing its rates and fares, and abolishing concessions. Following out the Minister's stated policy, the Board has already given a very considerable amount of attention to the reduction of-overhead expenses, and much has been done in this direction, the most important being, of the large programme of ir.<and new works, and more y&ixeeently the complete reorganisation of £fg£ workshops, which alone will re #j4 jralt in the saving of thousands -of |||.VlMtiiidß annually. Salaries, wages, in-> j$ Merest charges, etc., are more or less Moftned, but the staff question is having ||| J "vary olose attention at the present with the object of securing the standard of efficiency, and, g_<\what is more important, keeping the |H$ personnel down to what may be con stnstly essential to meet ro- «/ inurements having regard to good ad and public safety. Some jfrHi tariff proposals involve reductions in l In a number of. these cases pt %isfa "was necessary to remove anomalies, was unavoidable. In other ease? $ have been made in tho'hopn ItKJft More thaa balancing the loss by the pfyi'JWr business that will be, induced, by fj>\ 4 reductions. It is, of course, very ||f f-aiflJcuTt to estimate the effect of theso fifO'latter on thß Department's finances,, as fbb can bo ascertained only by actual V-> experience of the reductions in operas&« is probably'desirable to at least make |fw assumption of very substantial proEstimates of the effect of the various which permit anything apa reasonable calculation to the conclusion that the increase lljffjfo, revenue from the various proposals lllSiHnbodied in the new tariff should be S-Jn the vicinity of £370,000. Theso fig 8»|U | M are based on calculations for a fi|jpsole year's traffic, but as nearly ||||#ree months of the financial year have gone, and it may still be soTre ||pl<lreekg before the tariff is actually i".i f the full measure of beuefit gljwiU, of course, not be obtained for this |t|-pSaancial year. It is hoped, however, IJBLtWat through the activities of the combranch and the natural iuof business, the increase in reviJfrspl* accruing from new business may 'hIU v S* 6 than can at present be safeill ' The point which the

desires to make in the present is that the whole revenue to bo obtainable from the adjustments proposed is essential fv'-s '^ e e P artment is to b° placed on a report states that aB a result of the Board has obtained an insight into the wants of the customers. The inforSM^** 01 * t ' lus S a has also definitely ilP»£i? in the direction of a general |||j|s!toand for a better service rather thaai rates. This view is supportthe report of the Commission of llllpipgkßh railway experts, who recently ||||ejjqoired into railway affairs, and who, mjs&*. Sealing with the matter of competithe railways, stated that not think that the rates had f§9&M "to,much effect upon the traffic-as ||||P»;facilities of door to door convey--1 Another factor is the financial ||||sWt»a of the Department. Tho Royal iiiPotmiiission stated that the experience years preceding their report

at foot of. cezt column.)

was that there was no margin for a reduction of rates unless by doing so more traffic could be secured. JRegardiiig anomalies, the position is ditiicudt because the concessions in rates have been given for specific purposes. Passenger rates are not materially altered. Holiday excursion fares are further reduced, and concessions given as to the use of tickets. Special excursion fares are to be charged when deemed desirable at reduced rates. Family, ordinary, and excursion tickets will be issued, also twelve and fifty-trip tickets. There is no alteration in season tickets, but a slight incx«ase in annual tickets. Reporters' tickets ara increased to two-thirds of the ordinary, fare. Concessions are made to picnic parties from schools, factories, and trade unions. On suburban lines a concession is made for 6hcfft distances up to five miles. The charges for excess luggage are reduced, and the checking charges increased. Parcels rates are also increased. There are various other concessions. There is a lengthy list unds? the classification rate. There will bo an increased charge for frozen meat and wool, and slight decreases in the excess rates. Regarding rates on live stock, the only material alteration is the prescription of a mimimum half-truck •■ate for lots of animals. Charges for metal for local bodios are to be increased. but charges for demurrage will not bo made until eight hours have elapsed instead of the present five. A new provision is inserted p:«scnbmg a charge of Is 5d per ton per day or part of a day when goods lor shipment are held in trucks waiting to bo shipped. Regarding coal rates, it sueins clearly impossible to justify a continuance of the special rates if the Department is to pay its way. Various changes have been made in coal rates. Many pages are given to details of the classification and interpretations.