RAILWAY POLICY

Dominion, Volume 32, Issue 155, 27 March 1939, Page 10

RAILWAY POLICY

Charges By Leader Ot Opposition

REPLY BY MINISTER “Salutary Lesson” Of The Election By Telegraph—Press Association. AUCKLAND, March 26. “Nobody should be wove aware than Mr. Hamilton of the futility of endeavouring to fool the people of New Zealand lor all or even some of the time. He and the party he leads received a salutary lesson in this regard at the elections held in November, 1935, and that lesson was repeated with emphasis at the recent general elections toward the end of last year,” said the Minister of Railways, Mr. Sullivan, in replying to the statement made at Rotorua by the Leader ot the Opposition to the effect that the railways were not paying working expenses.

“Such a statement can only be attributed to unthinkable ignorance such as one would scarcely expect from a man occupying Air. Hamilton’s position, or it may be merely another phase of the old game of attempting to fool the people,” the Minister said. “The position is that the official figures quoted by me, and to which Mr. Hamilton referred, are in no way contradicted by him, but he endeavours to bolster up his contention that the railways are not paying working expenses by comparing a full year’s working on the one band with only portion of a year on tlie other hand, omitting, of course, three or four months of the year during which the department’s traffic is tlie busiest and the larger proportion of its net revenue is accumulated.

Latest Figures Available.

“For the information of it'he general public and to indicate the effect of the months omitted from Mr. Hamilton’s comparison,” said Mr. Sullivan, “I would poiut out. that the percentage of working expenses to revenue from April 1, 1938, to January 7, 1939, was 99.21, aud not 103.5, as mentioned by Mr. Hamilton, while the latest figures available to me from April 1, 1938, to March 4, 1939, show the percentage of working expenses as 94.70 of revenue. I confidently anticipate that the accounts for the year ended Maijeh 31 will show working expenses as about 92.5 per cent, of gross revenue, giving a net revenue of approximately £700.000.

“Mr. Hamilton states that for the year prior to the increase of fares and freights on Decemiber 11 last it cost the Raihvays Department £lO6 to earn every £lOO. Official figures show that for the year prior to December 11, 1938, working expenses were 95.54 per cent, of revenue. .Mr. Hamilton quotes the figures for 1935 and 1936 for comparison with those of the current year, but he omits to state that, by menus of wages and salary cuts during the two yea_rs referred to an amount exceeding £833,000 was filched from the employees of the department to swell the net revenue and to make an improved showing iu the returns. Provision for Maintenance. “On previous occasions, too. I have pointed out that my Government has had to make additional provision for maintenance to an amount of many hundreds of thousands of pounds because of the cuts imposed iu that respect by Mr. Hamilton’s Government. “Even when dealing with minor matters in the latter portion of liis speech Mr. Hamilton >was apparently unable to coniine himself to facts. When be referred to increases of up to 50 per cent, in minor charges, which,” said Mr. Sullivan, “have not been made, and also when he states an increase lias been made in tlie charge for sandwiches at railway refreshment rooms, which is also contrary Io fact, he is possibly blaming (he present Government for an increase in Hie price of sandwiches which was imposed under tlie previous Government and subsequently removed.

"Tiie Government.” concluded Mr. Sullivan, ‘‘is not looking for a scapegoat in tiie matter of its administration generally, nor insofar as its railway policy is concerned. It is quite prepared to accept the full responsibility for its actions without having recourse to the establishment of an independent board behind which previous Governments have taken slielter. “All the Government desires is to place the facts fully before the people and ask its critics, specially those holding highly responsible . political positions, to adhere closely to the facts when making public statements.”