RAILWAY CONTROL

Hokitika Guardian, 13 June 1931, Page 2

RAILWAY CONTROL

— . ■■■ LAST SESSION’S ENACTMENT. DIRECTORS’ SALAHIES. , Authority lor the charge in the control ol the railways is provided in the Government Railways Amendment Act passed during the recent emergency session of Parliament. The Bill was introduced on April 15, and in it the Government proposed to set up a board of three directors. One was to be appointed chairman for a ‘term of four years, hut subsequent appointments to the office of chairman were to he for three years. So far as the other two appointments were concerned, one was to be for a term of two years and the other for three years. Thereafter such appointments were to he for two years. The Bill put the chairman’s salary at £1 sen and that of the other two directors at £750 each. Whereas the chairman was to devote his whole time to the work, the other two directors were to he parttime officers.

CHANGES IN BILL. From the time the measure was introduced it was obvious that a directorate of thrtb did not appeal to the majority of members, and in view of the criticism in the House, the Prime Minister brought down an amendment altering the constitution of the board. The amendment proposed a directorate of 'five, with provision for the office of chairman to be part-time if requested in common with the other hoard members.

The salaries of directors were also revised. The chairman’s salary was fixed at £IOOO a year instead of £1,500 as first proposed, and that of the other four members at £SOO each per year. The effect of this was that although there had bec.n an adjustment in the directors’ remuneration and the number had been increased from three to five, the total salary lull for the hoard remained the same—namely, £3OOO.

THE BOARD’S POWERS. Practically the whole of the control of the railways system is vested in the board. The Act transfers to the board most of the powers previously held by the Minister of .Railways and the General 'Manager of Railways. In its ■financial policy, the board will be guidled by the advice of the 'Minister oi ■Finance, with whom the members will confer from time to time.

Without the consent of the GovernorGeneral the board may not acquire land worth more than £IOOO, or acquire or let by lease land or. buildings where the rent exceeds £lO4 a year .in the case ot buildings and £SO in the case of land. Otherwise the board is empowered to buy and sell land for the purpose of carrying out its general functions.

ALLOWANCE FOR DEPRECIATION

In the annual balance-sheet of the railway's which is to be presented to Parliament, the board is empowered to make allowance for depreciation and loss from various .specified causes, and loss from various specified causes, and railways revenue as a reserve to provide for .these contingencies.

The board has the right to close down unprofitable lines, and with the consent of the Governor-General the land and plant not required may he disposed of. 1 • o ronstructfon of new lines can be undertaken without a report from the board end the approval of Parliament. In special .circumstances Parliament may pass an Act authorising the construction of a line without a report first bemc presented from the board. Parliament is also gfve.n a voice sn deeding after a report from tlie board has been presented whether lines now suspended shall he continued.

Power -is given to the board to report upon lines under construction. When the BR was before the House (Mr Forbes said there was no reason why the board should not report on any such line before next session’ as all the information was possessed by the Railways Department.