GOVERNMENT IN BUSINESS

Hokitika Guardian, 31 August 1928, Page 1

GOVERNMENT IN BUSINESS

TRANSPORT AND REGULATIONS. TAXPAYHRS’ RURDEN. (Nineteen-Twenty-Eight Committee.) The Wellington Employers’ Association has done well in pointing out in its annual report that it is the public —the great hotly of taxpayers, great anil small—that hears in one way or another the losses upon the Government's various transport services. The Association does not take into account the losses sustained on the State Hailways, though here, to quote one instance there is an annual deficiency of some €500,00(1, equal to 5 per cent per annum on ten millions of money, on what are termed non-paying lines, which partake largely of the nature of the Government’s transport services. Most j i rose lines are run in competition wilh private motor services and the: Railway Department being relieved of ) its responsibility in regard to then earnings and losses cannot he expected to give tliem the eager attention it might do in other circumstances. j A GRAVE PROBLEM. i The Association, however, without j embarking upon the intricacies of rail- [ way finance is quite frank, and explicit j in its attitude towards State interfer- j enee in business. “The Government,” i it states, “shows no disposition to-j wards curbing public trading activities ; which proceed apace. Rather, the Go-j veriiment itself is giving a lead in the , matter by acquiring road transport ; ostensibly with the object of protecting ; the railways system. . . Private ell- | torpi'ise is being taxed to unreasonable j limits in order that good roads may he | provided and at the same time is being required to pay the annual deficit on , the railways which arc competing with them at unremuiierativc prices. . . On the one hand there are railways in which huge capital has lieen invested, running at a loss. Alongside of the railways arc being constructed highways upon which motor transport is engaged at a profit.” That is the problem the Association sets before the community. ITS SOLUTION. After careful consideration of the whole facts the Association reaches a sound conclusion which the Government can scarcely ignore. “ The Government has to decide.” it says. “ between curtailing railway services m favour of motor transport, or oi restricting motor transport in order to protect the railways. It is no light responsibility, and for that very reason a Commission, comprising the best brains in the country should he set up o assist the Government. To rely "molly upon the advice of departmental officers limy lend to detriment being done to

the country as a whole. Ou proper inquiry it may possibly lie found to he of greater value in the development of the country to foster motor transport and lose a, great deal of the capital investment in railways than to save the railway capital anil suffer greater losses in other directions.” The problem, as the Association says in conclusion, is one that has to he attacked not merely in the interests of the railways or in the interests of private enterprise, hut more particularly ill the interests and general welfare of the Dominion as a whole.