RAILWAY CUTS

Hokitika Guardian, 9 July 1930, Page 7

RAILWAY CUTS

£136,000 PER ANNUM.

FREIGHTS AND FARES MAY

'RISE.

WELLINGTON, July 7

Savings in the Railway Department for the remainder of the financial year will amount nearly to £90,000 as a result of the curtailment of services and the closing, of branch lines recently announced,/by the Hon W. A. Veitcii, Minister/of Railways. 1 “This figure,’ explained the Minister to a “Times” .correspondent, “is the saving for portion of the year, and it is estimated that in a full financial year the benefit to the railways account from this curtailment programme will be £136,000. This is not the end of the economies,' for we have to avoid the estimated deficit of £1,300,000 this year. Not only have we to check increased expenditure, hut meet larger capital .charges. The freight and fares schedule; is under revision, and certain /increases of charges will be made in the ..near future in some passenger rates ' and some goods rates.” . Mr jVeitch was able to detail the, expected 'savings from the curtailment programme, which is the first' instaU inept' of hcdnomies. Some of 'the fallowing figures! apply to the’ remaining ipdnths of' the railway,-'year, ending Mpdich 31st. 1931, ytid they would be larger! ,if 'applied/lo the full financial ypar,, as. three- and a 7 half months of tjje present/period - will elapse before the programme can operate.

Reductions in train, mileage on the Whangarei-Opua, KumeuWaitakere and East Coast main trunk lines will save 3,311 Eliminating Auckland-Welling-ton daylight limited 16,711 El imi n atjrig AVeIJ i ngton-N ewiPlymouth night express 6,795 South Inland express and mail strain .curtailments, 18,125 Elimination,,of, various Sunday ■The following are estimated annual sayingsfH : Nelson-section, adjustment of. train.services 7,145 Ghristchurch-W'aiauchanges .. 1,710 Cheviot pranch changes 1,000 So’ithbridge. branch changes ... 900 Kurow branch changes 2,184 Otago; Central train reduction 3,000 Oamaru - Palmotrslton - Dunedin changes ........... 2,340 Waimea Plains branch changes 750 Reduced track maintenance ... 700 Glenhatn branch, changes 1,250 InvercargillKingston and; . Hedge Hope branch. changes 3,246 SAVINGS ON CLOSED BRANCH ; lines. Estimated savings on lines by completely; closing them are as follows:

IG.(iA5 f jrne section, Ngatapa ,< ll branch (>,270 i'tJreytown branch T 294 Westport-Cape Foul wind branch 1,422 Oxford West-Sheffield 865 Eyreton' branch 2,190 Springbum branch from Mount , Somers 500 Fail-lie, Eversley and work goods traffic only on nyiwirider of branch from Timaru 2.800 Kurow-Hakatarmea 1,620 Tokarahi-Windsor 1,700 Wymlham-Glen.ha.rn and work goods only to Edendale 1.250 Mossburn branch 1,500 Tuatapeire-Orewni ti-osed, and work gods to Thornbury ... 2,8C0

MAINTENANCE SAVINGS

As some of the branch linos are to be restricted to goods traffic the 1 reduction standard of maintenance will enable savings to be effected annually as follows:

Waiulcu branch 900 Ractilii branch 250 Opunake branch 500 Foxton branch 500 Creymoutli-Hokitikn-Ross 1,250 Rangiora-Slieffield (0 xfo r d branch 300 WhiteclifFs ' 100 Metlivcn 1,227

INCREASED COMPETITIVE POWER.

“These changes,” continued Mr Veitch, “are being made- as quickly as possible, because a prompt reduction of non-paying servi es ( increases the power of the Department to withstand competition on the more lucrative part of railway business.. < The economies are being instituted ! during the dull winter months and will be subject to review when the report of the Railway Commission. < comes to hand. The railways will be as enterprising as ever in looking: for openings for payable traffic and:, adequately catering for profitable business. There is no reason to feel discouraged about the position, but the facts are so patent that prompt and comprehensive action was absolutely necessary. With, the precautions taken to eliminate unprofitable business there is no doubt whatever in my opinion about the future of our railways, now that they are being safeguarded in this way.”