RAILWAYS REPORT.

Hokitika Guardian, 16 January 1922, Page 3

RAILWAYS REPORT.

RECOMMENDATIONS OF GENERAL' j MANAGER, . - WELLINGTON, Jan. 12

CHANGED POLICY SUGGESTED

“ ]u view of the continued unsettled ( conditions jircvniling throughout the world, the large drop in imports and the decline in the prices of our staple products, principally meat and wool, it would not bo prudent to take other than a. conservative vietv in making a forecast of i ail way revenue lor the coming year. T anticipate that the revenue will reach £'7,250,000, and expenditure to not less than £8,'190,000,” remarks the Minister of Railways in his annual statement.

An accompanying report by the General Manager provides illuminating facts indicating how the railways have developed a financial "deficit since the figures given in the report for the financial year ended .March 31st ha.ve been compiled. Mr M’Y i 1 lev’s statement shows that of £1,51,54-1 increase ill expenditure, £8(50,563, equal to 50.19 per cent., represents the increased cost of wages, salaries and altered working conditions granted to the radway staff as the result of investigations made into the cost of living by hoards set up in 1920. The sum of £049,108, or 42.39 per cent., represents enhanced prices for stores and materials used during the year,,and £21,815, or L 42 per cent., the increase in the cost of miscellaneous services. The coal bill alone cost £940,000 more than during the year ended March 31st, 1915. «a>lw a vine ids wages have increased by 83 per cent since 1911, these increases alone equalling an amount which would pay 2.31 per cent, on the capital invested in railways. The General Manager shows that it the Department was charged interest at 32 per cent., which is the rate the Department is required by Government policy to earn on its capital oi £37,235,25-4 invested in tlie lines, the year’s operations show a deficit of £124,375. On this basis the loss roi the Year on the various sections was:— LOSSES. Section - TS South Island main lines ... 327,29/ Westland yr t,,o,t kSi Picton ; Lake Wakitipu steamers ... 3,1 U»

! Total " ! •‘Finally”, states the General Man- 1 1 ager, “it is abundantly evident that ' 1 so long as the inflated prices of all stores and materials used in the opera- 1 tions of the Department and the exist- r |ng high elites of wages and conditions • of employment resulting from the Win j ' remain operative, a continuation of the | < pre-war policy adopted when revenue | 4 was buoyant and operating costs were | I low of providing services as a eonvem- j once will have a most serious effect on j the finances of the Department. Existing conditions necessitate serious eon- 1 siderntion being devoted to the fines- T t.ion Whether tile Department Is to, < continue to run at a loss services that f in the past were laid on ffs a pure convenience will have a most serious * effect- on the finances of the Depart- < incut. Existing conditions necessitate ! serious consideration being devoted c to the question whether the Department is to continue to run at a loss services that in the past were laid on 1 as a pure convenience, or to provide 11 only services that are essential to meet c the reasonable and legitimate business I requirements of the country. Lo this there should he only one answer. < Nevertheless, every proposal !of the 1 , Department to discontinue unprofitable 1 ; trains and run others on business lines 1 i fins met with strong opposition from 1 i end to end of the Dominion. The cu- : j mulative effect of this is indicated in 1 j the figures quieted l above.” ' j Mr M’Vill.v adds that if adequate 1 funds could he provided for essential 1 improvements to bring the New Zealand railways up to date it is estimated , that steady employment could bo found 1 for five years for 2500 men. I Though the Railways Statement is filled with references to straitened! finance, the General Manager reitrates the. necessity of carrying out the big railway improvement scheme authorised in 1914, at an estimated cost of three and a quarter millions. Only £699,000 has so far been spent. The General Manager declares that in many places the limit of single line capacity has been reached, and that the master key to the problem is adequate terminal facilities. The Department, ho states, finds itself in the position of having to deal i with traffic from which a revenue of nearly £7.000,000 was obtained last : year with facilities that were eonsider- , ed to be totally inadequate for business when the railways were producing re- ‘ venue of £4,000,000 in 1914. The slow ■ rat-o oft progress made with the im- [ provements scheme is the direct outcome of the conditions created by the - war. The present shortage, of accom- . modation at various termini a nd other ’ important sub-centres of the railway fcystem is now having n very serious ef--1 feet on the operation/! of the Depart- - ment. .4 fruitful source of delay to ■ traffic increases the cost of dealing w ith it Notwithstanding the fact that postwar condition have for the time being checked the rate of progress, there can lie no doubt that 'YithDi a, compara- • tivelv short period the country will) again enter upon an era of prosperity which will result in a very material and continuous increase m the ' rnlwny traffic. The natural resources • and productivity of the country are such that its advancement cannot be i etarded for a,nv lengthened period. In order therefore Jthat the Department' may be/ placed in a position to deal satisfactorily, efficiently and economi--0 oally with the large volume of business >s Fave to handle in the near 111 future, it is imperative that provision ; d should’ he made without further delay ' n for carrying) out not only the scheme ls outlined in 1914 but others equally es- °" se.ntial at other important depots. The works that should be immediately undertaken are a deviation and a new er station at Palmerston North, new. stan. tions at Auckland, Hawera, Hastings, 80 Wellington, Lyttelton, Christchurch and Timaru, as well as important works R- connected with the Canterbury and :r - Westland lines in anticipation of the early openng of the Otira funnel.