RAILWAY LOSSES

Evening Post, Volume CX, Issue 70, 19 September 1930, Page 10

RAILWAY LOSSES

mkii AND APPARENT

CANADA'S SYSTEM

Suggestions made during the debate -on the .Bailway Statement that New Zealand would be in a better position if it was working on the Canadian system of accountancy were replied to in the -House of Eepresentatives this morning "by the Minister of Railways (the Hon. W. A. Veitch). The Minister said if the same system were adopted in New Zealand it would be possible to snow a substantial apparent profit each year. The Minister said if the House permitted the Railway Department to use the same system of .accountancy as was used in Canada the Bailway Department last year would have been a ble. to stow a clear profit of £900,000. ™. • * ! Mr. E. J. Howard (Labour, Chi-ist-chureh South): "That is very ungenerous to a sister Dominion." , Mr. Veitch said the New Zealand ■Railways wero showing the exact position of their finances. In addition to that, they were carrying a lot of altruistic services. The Minister also pointed out that all the interest on capital In the New Zealand railways was charged against the railway account, but in Canada all that was charged against the railways was the interest on the debentures which, bought out the private companies. Mr. Howard: , "Your statement is very ungenerous." The Eev. Clyde Oarr (Labour, Timjfitu)i ""Why make so much, of last grear's apparent losses? Why raise a feeare?" ■ ' Mr. Vdtoh said if the General Manager in New Zealand were able to Work under the same system as in Canada.he would be able to show a very substantial profit. That was the true position. Mr. Howard: "It is not the position, knd you know it. It is most ungenerous." <

Mr. A. Hamilton (Beform, Wallace) asked who met the interest charges in Canada. , .

"The Consolidated Fund," replied ■Hie Minister. '

' Mr. W. L. Martin (Labour, BagJan): "Do you suggest that th.c Canadian railways arc not showing a genuine profit?" Mr. Veitchs "That is their business. All I say is that if w-e were working on the same system we could show a substantial profit in New Zealand. If Canada, was on the same system as we ■are they would show a substantial loss each year."