TRANSPORT.

Hokitika Guardian, 27 April 1932, Page 8

TRANSPORT.

AUSTRALIA'S PRO I i LEMS

A FIVE-YEAR PLAN

SYDNEY, April 25. IT the AJ inister for Homo Aflairs (Mr Parkhilb ha* his way. Australia will have its very own live-year plan —- one dealing with its complicated transport problems. Mr Parkhill declared this week that he had prepared for the Cabinet proposals that were based on the report made recently by a special committee of experts who examined the position With special reference to the finances of the railways systems, Commonwealth and State. Australian transport has developed along haphazard lines and is now in an. almost hopeless state of muddlement, with railway deficits increasing each month, until they have become a burden far too great for any Government to shoulder. In practically every State but New South Wale.- the position has been tackled, and some huge savings effected, particularly in Victoria. In New South Wales the Government thought that motor transport was almost entirely to blame for the heavy losses suffered and practically banished motors from the road. It is clear now that the Government was ill-ad-vised, for the revenue has made no startling jumps.

CONTROL OF RAILWAYS. An important feature of the new Commonwealth proposals is. that unanim ty among the various \States, while desirable, is not essential to the inauguration of any of the three schemes that have been planned. This seems to be a wise move, as New South Wales seems disinclined just now to co-operate with any other Govrnment in Au-tralia. The experts pointed out that little could be accomplished jn the direction ol improving railway finances until the control of the railways was placed on a business basis. It is therefore part of the Commonwealth plan to remove railway management irom the position where it can be affected by every change in the wheel of political fortune. Australia now persists with seven separate administrations, anti the idea is to secure co-operate control on modern lines without the States in any way relinquishing possession of their railway assets. There would ho one central management the object of which would he to overcome the difficulties of overlapping and wasteful competition.

WRITING DOWN CAPITAL. Australia’* most serious problem as far as its railways are concerned is connected with over capitalisation. This aspect will need very careful consideration. The Finance Agreement hag enabled all the Governments to establish a sinking fund for their public debts. Once the railway management lias been placed on a- refoi med bn si* by co-operative action, the way would be open for ail railway debts M be funded. The national railway plan, such as now proposed would pr - vde for the writing down of excess capital over a period of years. As to motor transport, it is not the desire of the Vederal Government to run this ,-ff the mad, hut to provide lor uniform regulation in such a way that it would lie permitted the greatest possible freedom of action within its economic range. Until the New South Wale* crisis is disposed <4'. it is unlikely that the Federal Government will be able to devote much time to the problem o! avoiding millions in losses by its rail—wavs.