RAILWAYS MUST FIGHT

Sun (Auckland), Volume I, Issue 295, 5 March 1928, Page 8

RAILWAYS MUST FIGHT

COMPETITION COSTS * MILLION A YEAR PRIME MINISTER’S OPTHfIa (Special to THE SUE.) DUNEDIN. SundjjThat the New Zealand Rai must expect to lose money f or , few years while the position i, being consol dated, is the opinio, expressed by the Prime Mirirter the Rt. Horu‘ J. G. Coates, | as ,' evening. The department rec». nised that road competition had to be fought. Mr. Coates was speaking at a t,,. well social to Mr. H. P. West , tiring district manager. “It is possible,” he told his hearei “that within the next few years at department will be faced with th! hardest fight which has yet fallenits lot, but I am certain of ;ts uk mate success, for already it k, achieved singular results. At preset we are meeting with a keen conm* tition, which means a loss of £1.000,000 a year—that is road com]*, tition alone. We are not out for , complete monopoly, but we have to be wise for all possibilities and be Lt on the mark at all times to handu competition. We cannot do this n» less we have the equipment to gjr E complete satisfaction. “To the visitor from overseas must give all the attention that he would receive in other countries, ifc have to live up to what other people want, and if we can complete the raj’ system conjointly with other transport systems with which we are linked np a great avenue of business and oppo-i tunity is open for us.” Mr. Coates then expressed his ant plete confidence that in five or si years, if the present policy is pro. ceeded with and if the services asked for are completed, the department irji be placed in a position where it cap compete successfully with motor traffic. “It is quite possible,' he added warningly, “that you will lose money tor the first few years, but do not let people interfere. Complete yon scheme first, although it may invoke you in quite a number of million}— and, indeed, it will. The requirements are essential.”