FUTURE OF RAILWAYS

Hokitika Guardian, 18 October 1929, Page 7

FUTURE OF RAILWAYS

FORMER MINISTER’S OPINION

WELLINGTON, October 13.

What is the future administration and control of the New Zealand railways to be? Is it to be a matter of further commercialisation or is the administration to be brought still further under political control? Are the operating railways to be burdened by further extensive and expensive additions These and other important questions were raised in the House when the Leader of the UpU'w.ticn, Mr Coates, ex-Minister of Railways, opened the, debate on the Railways (Settlement.

The great point to he settled was one of policy, said Mr Coates. At an ea.rlv date the House should make a decision in that connection. He said his own view was that the railways chord d he further commercialised. During the past eight or nine years the tendency had been a gradual but definite movement in the direction of commercialisation. The first step had been ti;e separation of the railway accounts from the Treasury, and the next step was the system of providing- renewals out of railways account. It was all part of a sound and definite policy of making the railways provide for their own requirements. Still another step had been the complete overhaul arid re-clesiging of railway stores. The stores had been made to represent cash, in the sense that if the Smallest bolt was lost cash had been lost.

Mr Langstonc (Waimarino): You lost a fow bolts at Palmerston North. SOME HOPEFUL SIGNS.

Train control had been another recent reform, said Mr Coates, and another improvement was the adoption of a system of modern statistics revealing losses and inciUased costs. Intelligent rnteppnetaticln of those statistics was very helpful. This year's .Railway showed that the results of these reforms had been to some extent effective, Especially was this true in relation to the percentage of operating expenses to earnings, where fin improvement had been shown. There was a slight increase in operating earnings per train mile. Taken all rourid th'ese factors revealed the first indication of economy in 'relation to the Railway Department. .In Mr Coates’s opiiLon the signs were quite hopeful. “If we make a comparison. with the position in years gone by,” he said, “I think we will find that things do not appear as doubtful as: they might appear to at first glance. The accounts as kept to-day are kept by the right method.”

DEVELOPMENTAL LINES. “Is the State justified in making contributions towards ‘ developmental lines ” asked Mr Coates. He said there could be no question as to the sincerity of purpose in this connection in the past, It was time the Government gave an indication of the policy to be aclcpted. The position was analogous to that- of a private 'company running the railways and finding that it could not continue to operate the system, Would it be wrong in those circumstances for the Government to step in and make arrangements to parry on the service in the interests of the country? It was all very well to talk about rooting up branch lines, but the real question, seemed to be whether such ■cranch services might not be replaced with something sufficient tor the needs of the locality, “Iq the country ready, to accept the system of : control adopted in Canada, where they have thirteen or fourteen directors, with a president or general manager?” asked Mr CLsl.es. “Would it be possible to have the New Zealand Railways run by thireen qr fourteen directors selected to represent various community groups? If so, should they be appointed by the Government?” In Canada, the State railways were treated as a company, and the dirpplors were appointed by the Government,

Mr Holland, Loader of the Labour Party: Something like the Railways Hoard wo used to have.

3lr Coates: No; the Railways Board more nearly resembled the Commissioner system. It wns important that a definite nolicy should 'bo settled, continued Mr Contes, because we were spending millions on load and railway consruction, If there was to be a. loss, 'Mily the taxpayer could be looked to. Mr Coates said he bad read numerous books concerning railway administration in relation to several countries, but it was difficult to make them fit in with New Zealand conditions. South Africa had similai conditions, but with a much longer stretch of railway, and ClVbtttUv had somewhat similar conditions. The success which had attended the method of administration in Canada was well worth considering. LIMITING THE OPERATING' FIELD.

Mr Coates asked what the position was to be if the policy was to be one of throwing on to the operating railways miles of new and expensive lines. Some lines might cost £30,003 a mile.

The train of Mr Coates’s argument, was shattered at this stage by the Speaker’s warning bell, and someone moved that the Opposition Leader’s time he extended. “No; I shall not take more than my half-hour,” said Mr Coates, “although it is impossible to deal with the subject in that time. I am afraid that cutting-down spoils what X had honed to make at any rate intelligible. I can deal with other questions on the Estimates.”

Mr Coates concluded by asserting that it would bo impossible to have good management, if hopeless lines, which never had been justified and never could be jusified, were to Ik ipiled on to the operating railways. On the other hand, it would be bettor if wo said to tlie 18,000 railway men: “There is your work; there is your field; go ahead and make 0 success of it.” All that , the general manager was asking for was a lead as to wliat he should do as for as road and rail traffic was concerned. Much care would have to be exercised. Public Works jobs should not be allowed to interfere with the success of operating lines. “We want up-to-date passenger cars,” concluded Mr Coates. “I would almost go as falas to say that some of our first-class cars are fit only for second-class. They are cold and uncomfortable, and water comes in on rainy days.” Mr Parry (Auckland Central): Why not abolish the second-class altogether?

Mr Coates said the Thermal Limited was a good idea. It would carry touNsts to Rotorua in comfort, and this type of train was wanted. The Napier and New Plymouth lines also needed new cars.

Mr Savage (Auckland East) suggested that the problem appeared to be whether the railways were to he regarded as a social service for the country's development ■or whether they were to be commercialised. He contended that a commercial policy could not be accepted and he wondered what would be the railway freights under such conditions. The chairman of the Victorian Railway Commissioners had referred to road transport skimming the cream of traffic.

Air Parry (Auckland Central): The railways do the dirty work. Mr Savage quoted the same authority to stow that railways were still indispensable. The two services, rail and road, had both to be paid for by the community, and in face of this occnomio truth he wanted to know /whether co-ordination of services was to be brought about, not only in the interests of the railwavs, hut of the road users. TRANSPORT MINISTERAS OPINION.

The Hon W. A. Veitch, Minister of Transport, also contributed his opinion on this question. For many years, he pointed ouv, the railways had been permitted to lose a considerable amounlfc of money so that they might develop the country and' increase production. Experience had proved that this policy was wise, and although there Was a considerable loss every year, it had to be borne in mind that if the services were curtailed this, would do very little towards relieving the burden of interest and sinking fund on the capital sunk in the railways. Mr Howard (Christchurch South): We lose on the roads, too, Mr Veitch: Yes, indirectly, but we know We could not carry on the business of the country without them. The railways and motor services ■should be looked on from very much the same points of view. /