The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, AUGUST 31st. 1925. THE RAILWAYS.

Hokitika Guardian, 31 August 1925, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, AUGUST 31st. 1925. THE RAILWAYS.

Tin-; failure of the New Zealand railway,- til pay their nay during the last financial year may lie attributed in adverse circumstances. Rut for the losses incurred through the' unfortunate strike and the epidemic restrictions, there would have been a substantial surplus over the policy rate of interest on invested capital. Divond those abnormal circumstances, dll' system had only partial benefit from the reorganisation of administration and the new policy of canvassing for business. '1 lie* inauguration of more liberal views and methods has hardly yet been completed, while the . revison of the tariff does not become effective until the end of this month, so that even this year’s results must, be judged with some allowance for the difficulties of transition to a new regime. and tin* inevitable lagging of material results Itchind the introduction of productive improvements. The outstanding fact, however, comments a northern paper, is that from the beginning of this year the department is to he regarded as an independent commercial enterprise—on the one hand, it is to ho paid for services renilct i'd to other State departments, and proposes that it should receive subsidies in respect of losses on branch lines and isolated sections; on the other hand, it is to pay tin* full rate of interest on its capital, and to hear me cost of tile service superannuation fund. Til principle, this separation of railways finance is thoroughly sound, and the more commendable as it will inevitably force the management to remedy weaknesses and deficiencies which have hitherto been ignored. The new policy naturally imposes erre* responsibilities upon the management than it lias borne in the past, and it is to the hoard rather than to the Minister that the public will look for the definition of policy measures, especially those relating to finance. The hoard's report is, however, curiously vague upon the prospects for the current year. The department has an independent budget, hut no budget is presented. The only forecast is of revenue and expenditure in round figures, indicating another deficit, while the hoard itself virtually rejects those figures by stating that tlie new tariff, with the proposed recoveries from the Consolidated Fund. will bring in sufficient revenue to pay in full all the outgoings necessary. That n ay eventually he the result, hut the report does not inspire much confidence iji the implied suggestion that it will he achieved this year. No estimates are offered of the additional revenue to be derived from the new tariff, of the sums to be recovered for services to departments, or in subsidies. nor is there any statement of the superannuation charge or the additional interest liability. In contrast with this vagueness, there are deta.il:il estimates of the economies expected from the reorganisation of the workshops, hut those will not be realised for several years. The latter programme. with its promise of vigorous prosecution, is. however, evidence that the reform of the system is being undertaken in earnest, and that the management, with the support of the Government is not afraid to spend money to secure greater efficiency, and to reduce the excessive cost of operations.