ROAD AND RAIL.

Hawke's Bay Herald-Tribune, Issue 82, 23 April 1937, Page 4

ROAD AND RAIL.

The announcement is made to-day by the Minister of Transport that the Government intends taking over at once, or as early as possible, all goods transport services which it may regard as running in competition with the Statte railways. In a general way this may, ofcourse, be taken as being anotber step towards the "Socialisation of all means of production, distribution and exchange." There are, however, in this case special features that have to be taken into account. In the first place, we have the rail)way system, which may broadly be said to have been, a State concern ever since its inceplion. For a good many years now it has been a heavily losing concern, failing by a long way to earn interest on tbe £60 million invested in it. This loss continued, though substanitally reduced, even undef the management of the Railway Board, its actual amount for the financial year 1935-36, the last of that management, being some £lj million. For the year that closed last month the precise figures are not yet available, but there is certain to be a material increase in the loss, mainly as the result of the introduction of the 40hours week, As that was in operation for only part of the year, the loss on the full year just begun will probably be at least appreciably greater. All these losses on this State concern have, of course, to be made up by extra taxation. Thus every movemerit calculated to reduce them may be said to be to the advantage of the taxpayers. However, so f ar onr present Government has shown but scant regard for the taxpayers, and it may well be taken that its main purpose jnst now is to enable a State undertaking to make the best possible showing and so help to justify its einbarking on other State enterprises at the risk of the taxpayers. It is doubtless to this end that the Minister of Transport is now setting to work to get competitive services . of f the roads, thus f orcing f reight back onto the railways and so eompulsorily increasing their return^. . In order to conciliate those who have fonnd these road services for certain purposes both more convenient, more expeditious and more economical Mi;. Semple promises that "where either the train service or the nature of the road business may justify a continuance of the road services, either wholly or in part, the policy of the Government will be to operate snch services as.may be necessary in the public interest." As to wbat is to be considered as "in the public interest," a sbrewdly elastic phrase, the Government is, of course, to be the sole judge. This being the case, we may feel well assured in advance that its interprefcation will inevitably liave a bias in favour of the State railways and but scant regard for those who have hitherto fonnd the road services, in some respects at least, very much better adapted to their wants and to their pockets. The logical conclusion is that we shall find these so convenient services, thoroughly well established by private enterprise and at private risk aiid already under close official supervjsion, gradually withdrawn from our roads in the interests of the railways. The Minister, so far as we may judge from his statement, means to deal fairly with the present owners of these services in the way of fixing the prices to be paid on taking them over. It, however, seems doubtful as to whether anything will be paid for the goodwill of their business connections, a factor that would certainly enter into any deal with a private buyer. That is, in any event, quite a minor point and, as the Government is in no way niggardly in the spending of public money, everything in that way will probably be done to minimise Complaints. Another feature of the proposal is that, to the extent to which the road services will actually be maintained, there will be a further reinforcement to the already vast army of Government employees. What is to become of those who will lose their jobs as the road services are reduced is not as yet discussed.