RAILWAY POLICY.

Dominion, Volume 5, Issue 1530, 28 August 1912, Page 2

RAILWAY POLICY.

REFORMS IN PROSPECT, NEW MINISTER'S INTENTIONSGENERAL* MANAGERSHIP. ( ( A policy forecast is embodied iu the. < Railways Statement, which was presented < to Parliament yesterday by the, Hon. W. ' H. Herrio-s (Minister for Railways). The ! Minister states that on taking over control of the Railways Department he found I himself conironted with several great i problems that needed investigation, and, ' if possible, settling in a satisiactory way. i l'lio iirst was the question ol the general ' managership. Mr. Ronayne, who reach- ' cd tho age-limit in January, 1913, had ! expressed to (he Minister's predecessor i ana to himself his intention of retiring i from tho position which ho had so long and fiuthllilly tilled. Tho Minister repeats tho announcement in the Financial ' Statement that Cabinet had decided, oh his recommendation, lo invite applications in London for the position of general manager. It was not intended to do away with Ministerial control or to lessen tho responsibility of tho Minister to Parliament. ; ' ' The State Employees. Tho next burning question to be mot, , the Minister continued, was the question of tho relations ol tho Stato to its employees on the railway. The State should be proud of its employees in that Department, as, taking them as n, whole, they were a tine body of men. They had, however, cortain grievances which in somo cases wero justly founded, and last year had petitioned Parliament. His predecessor, Mr. Myers,' had relieved him of a portion ot this intricate question by coming to an arrangement with the executivo of the Amalgamated Society of Eailway Servants, which was satisfactory to both sides. Ho (the Minister) had met representatives: of tho Locomotive Engine-driv-ers', Firemen's, and Cleaners' Association, , and had no doubt that in their case it satisfactory solution would be arrived at. "In the enso of the First Division," tho Minister continues, "as soon as tho question of difference between the figures submitted, by the Department and by the Eailway Officers' Institute is settled by tho Public Accounts Committee, to whom it has been referred by resolution of. the House of Representatives, I intend to meet the Executive, and I have no doubt that in this ease also a modus Vivendi will bo arrived at. When .those agreements are como to, a Bill amending tno Government Railways Act will bo brought down and submitted to Parliament this ses-. sion. Extensions and Improvements, "It will be necessary shortly' to put in hand' a numboi of important works of very considerable magnitude, so that the railway may bt in a position to meet tho demands of the rapidly-expanding business. It is proposed that a special Act bo submitted with tho various items scheduled, and authority given for a sufficient sum of monoy to bo borrowed, tho expenditure being spread over a term of years. Tho state of tho money market, however, precluded the idea of introducing tho Bill this session, but if the market improves it will be- introduced next session. . "Another, 'very important work that should be carried out on well-defined lines is tho grade improvements foreshadowed in last year's' Eailway Statement. Up to the present time that portion of this most important work that is in hand has been charged to the A.O.L. vote, but, as this provision is* insufficient to meet tho requirements and enable the work to bo pushed on vigorously, it is hoped to deal ' with tho 'matter comprehensively next session, if tho financial stringency is easier. • Percentage 'of Working Expenses, "Another question that is bound to givo any Minister for Railways great concern is the question of the percentage ,of working expenses 'to earnings. In tho tables given in this statement this will bo found to be 67.07 per ceiit., an increaso of 1.15 per cent, over last year, duo no doubt to a largo extent by the alteration of the classification by the Government 1 Railways Act, 1911, and this will probably bo still further increased during the current year rjy tho alteration of the classified rates which will be necessary by the agreements with tho First and Second Divisions mentioned above. This is, of course, unavoidable, as to give the employees a fair wage should be the desire of every Minister. The percentage of working expenses ro earnings is, however,-■ sp high in Now Zealand as com- ■ pared with tho Australian States that other causes besides the increase of wages must bo operating, whioh it will-be my duty to investigate. In 1911 the following was the percentage in the different ' States:— Now Zealand .' 65.92 Viotoria ; 61.10 New South Wales 61.09 Queensland 87.25 South Australia • 60.CG Western Australia 65.95 •Tasmania '..:. 77.55 "Another problem whioh faces a new Minister is the disproportion of earnings of the two great lines of railways in the Dominion—the North Island main line and branches and the South Island main line and branches.' The following tablo shows the differences:— Interest on Cost of Construction. .£ s. d. NotHi Island main lino and ' branches i 19 7 South Island main lino and :;. branches '3 2 0 Net Revenue per Train Mile. 8. d. North Island main line andbrahches 2 103 South Island main line and branches 2 6} Net Revenue per Average Mile Open. £ North Island main line and branches ... 607 South Island main line and branches ... 303 "If we compare these fignres with those of 1909—which is the year connection was completed between Auckland and Wellington—wo find that from that year to 1912 the following wero the increases:— Interest on Cost of Construction, 1909-1912. 4, s. d. North Island main line nnd branches (Increase) 1 i 1 South Island main line and branches (Increase) 0 15 5 Net Eovenue per Train Mile, 1909-1912. d. North Island main line and branches (Increase) 9} ■ South Island main lino and ' branches (Increase) 8J Net Revenue per Average Mile Open, 1909-1912.' £ North Island niain lino and branches (Increase) 185 South Island main line and branches (Increase) S3 "These tabl-e3 show that, though there has been a small increase in tho net revenue of tho South Island Main Trunk line and branches during the period mentioned, it is not at all commensurate with tho enormous increase in the revenue of the North Island main lino and '• branches. Of course, the rapid increaso of settlement and the activity consequent 1 on opening up now country mil account ' for a certain amount of the increases in : the North Island; but the whole question requires investigation as to whether the results are due to circumstances over which tho Department has no control or ' whether they are due to the management of the railways. In dealing w.ith this matter, it is not in any way my intention ! to pit the North against the South, but 1 I will bci failing in my duty if I did not - call honourable members' attention to tho - facts which I have mentioned. 'Unfortnnnlelv. the net revenue of the most pro--1 fitable lino in the Dominion, situated in ' tho South Islnnd-untnelh tho Westport line—wliich last year returned .£l2 Is, lid. per cent, en cost of construction, does not go to tho Dominion, hut goes as an endowment to Die Westport Hnrbonr Board under special Acts, nud the Dominion nt tho same time is paying; interest On the cost of construction.