STATEMENT BY THE MINISTER

Dominion, Volume 11, Issue 51, 23 November 1917, Page 6

STATEMENT BY THE MINISTER

MONEY NEEDED FOR BONUS

Tr)E CHARGES EXPLAINED,

"The additions to the rates and fares gazetted to-day," stated the Minister of Railways to a reporter, "are made necessary by tho fact that, the whole of the war bonus granted last year and the additional allowances granted tliis year to married employees are being charged to the railway revenue. The estimated expenditure for the current year appears in the Budget as £2.043,500. In this estimate , the bonus and allowances were "not included, ne it was not then determined to charge the bonus to each Department separately. Tho revenue for the year mis' estimated at £4,200,000, leaving an estimated net revenue of £1,206,500, or approximately 3t per cent, on the capital cost of the railways. estimated expenditure is now to be increased by the sum of £200,000, being the amount of the war bonus voted la-st year, and £65,000, the approximate amount .required for the remainder of the current year of-<he sum of £175,000 which is the estimated annual cost of the allowance of Is. per diem to married men to commence on December 8. This makes an. additional expenditure for the remainder of the current year ending March 31, 1918, of £265",000, and an annual expenditure of £375,000, for,as long as the bonus and allow-, diices are continued. In addition to this there is the ever-increasing cost of materials to be considered, moro especially coal, the annual cost of which to the Railway Department has increased by £123,000 since 1914. It is for the purpose of providing ways and means for these increases that the new increases in ratos and fares have been gazetted.

For Cood Service. "I do not think it will bo disputed that the bonus and allowances wcro justified. The Railway Department is the largest employer of labour in the Dominion, and should set the oxample< by paying its employees a fair wage. Every other class of labour, as for instance miners, waterside workers, seamen, shearers, have got substantial increases sjnee tho commencement of the wai , , either by bonus or increase of ivages. The railwaymen havo been thoroughly loyal during very trying times, and are cheerfully undertaking the extra work entailed by so many of their number having gono to the front, so that I am Mire no legitimate objection can be taken to the increases granted by way of bonus and allowances ,to meet the increased cost of living, and also to enable the Department to keep its men, which it would not be able to do if 't were paying wages below market rates.

The Proposed Increases, "The increases'proposed in passenger fares and coaching rates are at .the rate of 10 per cent., .except in the cases of fares for military forces, -weekly twelvetrip tickets, workers' weekly tickets, and suburban season tickets, tabulated parcel rates, checked, lost and left luggage and left parcels. The increase proposed in goods rates is also 10 per cent., with the exception of rates on the following articles of food—bread, flour, fresh fish, fresh meat, fresh milk, sugar, and tea; and also timber and wheat. With regard .to the two latter, special conditions apply.

Timber Charges, "The special rates now operating for white pine timber were introduced in 1895, whpn white pine was regarded as a waste product. The settlers were unable to obtain more than 2s. per 100 superficial feet, and the timber was being burnt off the land in large quantities. Special reductions in the rates then in force were made for the purpose of assisting to savo the timoer for export and induce its use for local purnnscs. White pine is at nresent worth 15s. to 20s. per *00 superficial feet, and is now one of the most valuable New Zealand timbers; It can well afford to pay the ordinary railway rates, and therefore the special rates for white pine have been cancelled. All the special rates inaugurated at variouß periods for tho purpose of assisting the timher industry when it was in its infancy and for competing with sea eomnetition. which dors not now exist, liave been abolished, and in future the

classified rates for the distance timber is carried will apply throughout tho railways. It has frequently been represented to the Department by sawmilling associations that the various local rates were inequitable, that they had created anomalies, and that tho levying of the classified rates on a mileage basis would be most satisfactory to all concerned. As 'a set-oft' in favour of the fiiiwrnillcrs it should be noted that timber lias been exempted from the 10 per cent, rise both on this and on the last occasion.

Wheat Excepted. "Tho 10 per cent, will not be levied on wheat, but as a set-off to obtain an equivalent revenue, an alteration will be made in the manner of assessing tho weight. In futuro, wheat, instead of being assessed at twelve bags to the ton, will bo assessed at the weighbridge weight of 22401b. to the ton. Tho existing arrangement of computing the weight on so many sucks per ton was brought into operation in the early days, when the weighing appliances were extremely rare, and the railways were not properly equipped with weighßridges. Wheat will now bo assessed for weight in the same way as is done in the case of oats and other grain. This system of calculating the weight will do away with a constant source of friction between tho Department and its customers owing to disputed weights of sacks. Special Rate Anomalies. "Opportunity is also being taken to remove long-standing anomalies in the shape of special competitive rates, which were instituted in 1890 and 1891, over twenty-five years ago, chiefly on the South Island main line to deal with water competition. Since that time sea freights have doubled and trebled, but the railway freights have not air tered, and numerous anomalies are being created which are well known to all users of the line. The special rates between Christchurch, Timaru, Dunedin, Port Chalmers, Oamaru and Dunedin. and Invercargill have been cancelled. Goods of Classes A, B, and C carried between the points named will in future be charged at Class D. It will be seen that an important concession is still maintained, compared with the rest of the ■ Dominion, and the rates imposed will still bo under those charged by sea, when wharfage and railage from port and other charges are considered. The cancelling of these special rates would be a necessary preliminary in any case in compiling the new tariff which it is proposed to bring in when the war is over. As an instance of the numerous anomalies created by these special rates, I quote the following:— "From Christchurch to Timaru (100 miles), one ton of goods of classes "A," "B," "C," and "D," cost 18s. The railage on the same goods, Christchurch to Ashburton (53 miles), would amount to: Class "A," 335.; "B." 28s. Id,: "0," 245. 2d.; "D," 18s. 2(1. "From Christchurch to Temuka. (89 miles), the charge would be: Class "A," 265. Gd.; "B," 265.; "C," 255. 3d.; "D," 245. 6d.

"From Dunedin to Invercargill (139 miles), one ton of goods of classes "A," "B," "C," and "D," would cost 18s, "Prom Dunedin to Gore (100 miles), the rates would be: Class "A," 445. 6d.; '%" -10s.; "C," 365. 7d.; "D," 325. lid. "Prom Dunedin to ATaipahi (84 miles), Class "A," 445. 10d.; "B," 375. 4d.; "C," 31s. 2d.; "D," 245. 6d. "From Dunedin to Woodlands (128 miles): Class "A," 265. 6d.; "B," 265.; "C," 255. 3d.; "D," 245. <x). ■' "The Department is not justified in carrying goods at an unremuncrative rate in . any part of the Dominion, when the cause of such rates has disappeared. The other alterations in the Gazette notice are mainly Departmental ones. The charges for sorting and handling of goods are necessarily increased owing to the increase in wages. , Show Exhibits. "With regard to agricultural show exhibits, a slight \ alteration has been made. Tho present arrangement has been represented as being very cumbersome. new regulation simplifies the arrangement and provides for full freight on the outward journey and free carirage on the homeward journey for any portion of the exhibits tliat is unsold. Tho number of certificates required has thus been reduced; It will be remembered that last year the similar privileges which were extended to racehorses, polo ponies, etc., wero abolished, so that show stock'still has under the new arrangement ample concessions.

The Aim—a 2{ Per Cent. Return. "These increases," said Jrir. Herries, "are calculated to counterbalance the increased annual expenditure duo to the increasos tp tho staff mentioned above, and the general increase in tho cost of material, more especially of coal. Tho aim is to obtain an average return of 3} per cent, on the cost of construction of tho opon railways. Last financial year was an exceptionally good yenr, but in view of the Tincertainty of the shipping problem, whioh governs almost entirely the question of railway revenue, it is a prudent policy to take, a cautious view in estimating the revenue, and at the same time to make ample provision by way of ways and means'.to meet possible eventualities. It must also be remembered that the Customs and Railway revenue are the mainstays of the Finance Minister's Budget, so that a strong finance should be maintained. The necessity of placing the railways on a partial war footing and releasing as many of the employees as possible to go to the front has compelled a considerable shortening of train facilities, and in some cases the cutting traffic which was from a purely, revenue point of,view desirable. Tin's emphasises, the necessity of eliminating as far as possible all unremunorative and superfluous traffic, so that the whole efforts of the Railways may be devoted to the transport of men and goods that are considered essential to winning the war.