RAILWAY REFORM

Hokitika Guardian, 19 February 1931, Page 2

RAILWAY REFORM

SUMMARY OF REPORT OF COMMISSION. PRESENTED, SEPTEMBER 17, 1930. The report of the Commission set up to inquire into the possibilities of increasing the revenue and decreasing the expenditure of the New Zealand railways runs into no fewer than seventy foolscap pages of print, it takes the shape of question and answers, the questions being put- formally by His Excellency the Governor-General, in. exercise of the powers conferred upon him by the Commissions Inquiry Act, and the answers being supplied by the Commission after close examination and inquiry. The report, on account of its length and its necessary detail, has not been widely read, and it may he helpful to those who should be acquainted with its contents to quote afresh the questions put to the Commission and to indicate briefly the Commission’s replies. Questions and replies may be abbreviated as follows:

(1) Is the general organisation of the Railway Department such as to produce the maximum of economy and efficiency in administration ? The General Manager is responsible to the Minister of Railways, but his powers in regard to administration and the appointment, promotion and discipline of staff are greatly restricted. This has a far reaching and prejudicial effect on the efficiency of the Department, and also on the financial results obtained,

(2) Is the scale of passenger fares snob n 9 to produce the best results? It is not thought that any decrease in the existing fares would appreciably improve the short-distance passenger traffic, but a slight increase might bo made in ordinary lares, which would affect individual passengers to a very small extent. (Estimated increase £-15,000 per annum.) (3) Is the issue of concession tickets at the present, rates and on the present conditions warranted or should it he modified or changed? A slight increase in the present concession rates would not cause any loss of traffic and would also materially increase the revenue. (It is estimated that the increased revenue from the alteration would be £22,000).

i (4) Is the goods traffic such as to produce the best results? So far as , the goods traffic is concerned, the only action to he taken in assisting to balance the finances of the Department is by raising the rates and conditions of carriage on the lower rated comI modities. (Estimated total increase by this means £61,000 per annum.)

(5) Are the existing arrangements for the carriage of parcels and goods the best that can be made? Owing to . the better service given by motor transport, there has been a decrease |in parcels and smnll lots of goods delivered by rail. The Commission does ' not favour the establishment of special departmental motor services. | (0) Is the existing arrangement with I the Post Office for the carriage of ■mails equitable? The figures show thnt during the last few years this traffic has appreciably increased and that the ! time has arrived when payment should be made for this service. I (7) Are the net returns from the vnpious subsidiary services maintained by the Department, such ns the Lake Wakaiipn steamers, refreshment rooms, advertising and so forth, satisfactory? The Commission shows prnc- | ticnlly the whole of these undertakings to be drains on the finances of the Dominion. (See pages 18 to 23 of Commission’s report.)

(8) Ts the existitnpj staff establishment such as to ensure a satisfactory standard of economy and efficiency? (See pages 23, 24, 25, 26, 27, 28, 29, 30 and 31.) The Commission’s report recommends that the whole staff regulations should be very thoroughly overhauled with a view to affecting economies in expenditure, and that the staff establishment in all its branches should be subject to the closest scrutiny,

(9) Are the maintenance costs of the permanent way works and signals down to a minimum consistent with the maintenance of safety and efficiency? The cost of maintenance on main lines cannot be materially reduced. When the works now in hand on additions and open lines are completed a considerable reduction of staff should he possible. (10) What reserve fund should he set aside for revenue each year to cover depreciaton and renewal ? Th e Commission is satisfied, after fully considering the schedules of assets and the rates of depreciation allowed that proper provision is now being made. (11) Is the present arrangement for the maintenance of combined railway and road bridges equitable? The Commission is of opinion that, greater economy should he attained in the maintenance of the rolling stock without reducing the standard of safety and efficiency.

(12) Is the rolling stock being economically maintained at a proper standard of safety and efficiency ? The Commission is of opinion this is not so. The volume of work passing through the shops is not nearly sufficient to keep the hands employed. (13) Ts the maximum of benfit being obtained from the new workshops erected in the four main centres? The Commission is of opinion this is not so. The volume of work passing through the shops is not nearly sufficient to keep the hands employed. (14) Are tl*e locomotive transport costs down to a minimum ? The Commission is of opinion that considerable economy could he effected in this direction without impairing efficiency or safety.

(15) Are the existing arrangements for the purchase, distribution and control of railway stores economical ? The

regulations governing the purchase of stores are satisfactory, but the issue of stores, is cumbersome, causing unnecesary wate of time with a resultant loss of efficiency.

(16) Are the traffic transportation costs down to a minimum consistent with the maintenance of a proper standard of safety and efficiency? The Commission is of opinion that tiaffio transportation costs are now down to a minimum.

(17) Would the- abandonment of Working (either wholly or in part) < f any portion of portions of the railway system be justified? The Commission was impressed by the evidence submitted. particularly in the- South Island, by the sincere desire of the people in districts to prevent the adbandoiiment of lines. (See report pages 45-69.) (18) To what extent is it possible and desirable, in the interests of the economic welfare of the Dominion, to co-ordinate rail and road transport? The Commission is of opinion that under existing conditions it is not possi’ihle to co-ordinate rail and road transport, unless the full control and operation of all such transport is vested in one authority. The matter is one which require" a large amount of careful study and investigation, which, in the time at its disposal, the Commission is unable to give. The Commission is of opinion, however, that it is essential that motor traffic, particularly that engaged in rrc’gh't services, be licensed, regulated and controlled by a properly constituted authority, which would require to take all factors into consideration before licenses were granted. (19) The Commission is directed ponernlly to review the administration and financial position of the Railways Department and to recommend what, if any, steps might be taken to secure a proper bajnnoe of economy, efficiency and satisfactory service. SUMMARY OF REPLY. The Minister of Railways has vested in liiin the control of the Department, and not only directs the general policy hut takes an active part in the management. The construction of new lines of railway-- is decided bv file policy of the Legislature, it ha- !>r«n definitely stated in evidence hciui'e the Commission tlmt the financial operations of the Department and the general efficiency of the staff is adversely affected by the present method of administration. Substantial saving could have been effected by a reduction of staff, but these reductions were not made by reason of the fact that they were not sanctioned by the Minister—With the Government of the country engaged in the administration and management of the railways it is not possible to achieve the host results.—ln practically every other country in the world it has been shown that the best result is not obtained through an intimate control as between the management and the Government. The position in the Dominion calls for drastic and immediate action and the transfer of the management to persons not subject to political influence. The Commission recommends that legislation bo enacted to provide for the appointment by the Governor-General in Council of a Board of Directors, and .tifat this Board be given full and complete control over all operations of the Department,