A MINISTRY OF TRANSPORT.

Shannon News, 30 September 1927, Page 4

A MINISTRY OF TRANSPORT.

MEETING MOTOR COMPETITION. COMMISSION TO INVESTIGATE. In the eourse of the Railways Statement, the Minister (the Rt. Hon. J. G. Coates) indicates the setting up of an invstigating authority into the position of the railways in regard to motor competition and the establishment of a Ministry of Transport. The Statement says: “New Zealand has made a world’s record in the absorption of motor-vehicles during the last two years, the increase from 1925 to 1927 representing a gain of 58 per cent., the greatest increase (from 13,000 to 23,000) occurring in the demand tor commercial motors.’’ For the railways to have met this competition with a full commercialised programme would have played havocwith the national development work which, through a long period of years, they have been moulded to perform and under the shelter and protection of which production has been greatly aided and industrial enterprise encouraged. Motor competitors, however, who, naturally, as individuals, had no direct concern with the national development aspect of the country’s transport have been able to do quite well by taking only one class of traffic —the high rated—thus disturbing seriously the equilibrium produced under the Railways tariff scheme. A similar position has developed in the matter of suburban passenger traffic, the ordinary passengers being attracted away from the rail by the extra convenience of the motor “pickup’’ and “set-down’’ facilities, while the low-rated traffic —the suburban workers and season ticket holders (all carried below cost owing to the previously existing balancing factor of a full traffic —is left for the railways.

A striking instance of the consideration of the Department for the general interests of the Dominion is found on the manufacturing side of the Department’s activities, where, through the adoption of better methods and the setting up of new machinery, it would have been possible —during the recent unemployment crisis—to carry on without the services of several hundred men, who were kept on, in the public interest, after their services could have been economically dispensed with. Motor competitors have also gained tremendously by the heavy expenditure in road-surfacing (in some cases at-the rate of £IO,OOO per mile) undertaken by local bodies. These* circumstances point definitely to the necessity for such action as will at least equalise opportunity for the railways in their business-getting efforts with those of their competitors, such equalisation taking account of (a) adequate payment for the use of roads, to put them on a parity with the railways’ self-provided and maintained permanent way; (b) assessment of the value of developmental services now rendered by the railways, and adjustment of national finance in relation thereto; (e) such regulations regarding fares, time-tables, and routes .as will prove most economically efficient. “The question of safeguarding the enormous capital cost of the national transport system requires the gravest consideration, and after carefully weighing the whole of the circumstances surrounding the Dominion’s transport problem. 1 have come to the conclusion that if we are to secure for the country a continuation of the liberal developmental and protective' policy that has been so valuable in the past, it will be necessary to inaugurate transport control through a properly constituted Ministry of Transport.’’ In view of the capital investment, approaching £60,000,000, already made by New Zealand in regard to her railway system, and the capital commitments, in the vicinty of £15,000,000. for the completion of new lines now under construction and improvements of existing tracks, it'must be recognised that a great responsibility rests upon the Government in relation to the future of transport within this Dominion.

The present position is serious, so serious that the public have only two alternatives to look forward to, viz.:

(1) To carry on in accordance with the existing practice, with the certainty of closing certain services.

(2) To initiate an intelligent amalgamation of transport interests which will make it possible to give continuous reliable service and cheaper freights.

The second course having been decided upon, the following questions arise: llow is transport likely to develop during the coming decade, and what can be done to assist its development in directions best suited to the Dominion's requirements?

The investigating authority would require to go into the whole question thoroughly, both in relation to the economic effect of transport as now carried on, and also in regard to improvements which could be made possible by a better inter-relation of transport effort to reduce overlapping, and cheapen for the people of the Dominion their overall transport costs. The programme of works now under way for roads and, railways is taking shape in accordance with a carefully prearranged and comprehensive design. If this were stopped, or even retarded, it would occasion much loss in capital return and transport efficiency. The whole work, therefore, requires the closest attention from the Government as the programme develops, in order that the full benefits obtainable from a perfected transporta-tion-system may accrue to the country.

“I believe that a broad and for-ward-looking policy is necessary not merely with a view to the transport position as it will exist one or two years hence, but keeping in mind the conditions likely to obtain eight or ten years from now, when the hulk of the work in railway and road construction upon which we are at present engaged will have been completed.