RAILWAYS FINANCE

Hokitika Guardian, 29 May 1931, Page 8

RAILWAYS FINANCE

AHNISTER’S STATEMENT. “BETTER THAN THE PUBLIC BELIEVES.” INVERCARGILL, Alev 26. An illuminating explanation of the financial position of the railways was given by the Minister of Railways (the Hon. IV. A. Veitch) during the course of -a discussion with a deputation from the Invercargill Chamber of Commerce this afternoon. The financial position of the railways was very much better than the general public lielitivied, Mr 'Veitch said, and if the economic state of th<^ oountry returned to normal it wou!<t be found that .the economies effected in the Department would place the railways in a very sound position. LOYALTY OF STAFF. Alter replying to the deputation, Air Veitch referred to the real live interest the rail way men were taking in solving, the problems of the railways. “I don’t think that the public realises how loyal the railwaymeu are in the present crisis” he said, “ai'd 1 believe the crisis is not nearly so / great as the general public thinks.” The railway financial position was going to win through, he added, am* the success would he chiefly owing to the changes that had been made. Tl the railway accounts were, kept on the same basis as the accounts of the railways across the Tasman, the losses on the Now Zealand railways would he very must less, and very much less than the losses shown in Australia. The New Zealand railways had a reserve and obsolescence fund which amounted to H per cent., a principle which did not apply >n Australia.

COAIPARISON WITH AUSTRALIA- ■ “If yoiTwant to get a fair comparison,” said Mr Vieitch, “you must add l.i per cent to all of the Australian concerns, and then compare them. Another point is that since June last, when T took over the control of the Department, economies have been intituted at the rate of £1,000,000 a year. They will not show more than half a million, but the answer to that i? Ith,at some have only been m operation for a few months. When we get a full year, even if more economies are not made, and they will be, we will show a reduction of £1,000,000 in our costs.” BETTER THINGS EXPECTED. The reduction in the railway revenue was considerable, he said, hut it wa a not to he expected that the countiy would a.Uvavs he in the hollow of a slump, and If the economies were kept .up when trade ... returned to normal, the losses on the railways would lie reduced to £300,000 instead of £1,300,000. Mr J. GiUvinson : Dpos that a.Uow for interest? Mi- Veitch: Yes. So you see in nt though the figures look bad, there is nothing ibad about them. We only need continued rigid economy and tffio railways will he in a splendid position. Motor competition had only stopped milwav expansion, he said, and had not reduced the railway business, which, before the slump, was increasing slightlyThe Minister said tRe Ran wavs Board would be appointed and would take charge on June 1. He added that statioumasters would be expected to ooiwe Into much (•loser contact with, the business world and the idea was to make every .station master -a commercial officer. He had nothing against the Commercial Department, hut the commercial officers moved about, and he believed that it would l, 0 better to have an agent established in each centre. He did ' not think that there would bo . any very early ! changes/