“OUT OF HAND”

Wairarapa Times-Age, 3 September 1938, Page 5

“OUT OF HAND”

CRITICISM OF RAILWAYS LOSSES OPPOSITION AMENDMENT DEFEATED. DISCUSSION IN THE HOUSE • OF REPRESENTATIVES. (By Telegraph—Press Association.) WELLINGTON, This Day. Losses made by the railways were criticised by members of the Opposition during consideration of the items in the Working Railways Account in the House of Representatives yesterday. The Leader of the Opposition, the Hon. Adam Hamilton, moved an amendment to reduce the railway vote of £9,051,869 by £5 as an indication that the financial management of the railways had got out of hand. The amendment was lost by 35 votes to 13. The vote was then passed. “The figures we are considering for the expenses of the railways are collossal,” said iMr W. J. Polson (Opposition, Stratford). “The number of employees, in the department has increased by'" nearly 6000 since 1934-35, expenditure has risen by £2,500,000, and earnings are/downby 58 per cent. In spite of’this position the Minister of Railways talks about the leeway made up under his administration. “The position is truly alarming. It shows that the railways service is steadily making further inroads into the money of the taxpayers. Larger demands are being made on every individual who is obliged to contribute to keep this service. The Minister will probably say-I have invited him to put up freights. That is not so. My remarks are simply an invitation to put the brakes on the increasing expenditure and grotesque extravagance of the railways.” The Rt. Hon. J. G. Coates (Opposition, Kaipara) said that urgent action should be taken by the Government to check the drift in the railway finances. The situation was most unsatisfactory. The House was being.asked to vote £9,051.869, as against £7,779,665 last year. The railways were only just paying running expenses. “The deathbed repentance of the member for Kaipara in regard to railway losses is hard to understand,” said the Minister of Railways, the Hon. D. G. Sullivan. “For years past well over £1,000,000 has been lost every year, even in the years of the administration of the member, for Kaipara. What was all right for Mr Coates becomes a crime of enormous magnitude when a Labour Government is in office.” Mr Coates: “Your losses are a record.”

The Minister said that the member for Kaipara had shown losses after reducing the wages of the railway employees, and also making a reduction in the amount set aside for the maintenance of rolling stock. Mr Coates had also changed from one form of control to another. The Government had spent an additional £2,000,000, the great bulk of which came from revenue, to improve the position of the railway employees. The Government had at least something to show for its losses.

“The Railways Department conducts the only service in the Dominion which has not increased its prices to the people,” said Mr Sullivan. “The orices today are the same as they were three years ago. If the member for Kaipara wants increased net revenue he should say how he proposes to obtain it. There are two ways, a reduction in wages or an increase in freights, or both.” Mr Hamilton said that even though the railways were obtaining more business the losses were becoming larger and larger. Most businesses reduced their losses under circumstances such as those.

The Leader of the Opposition then moved his amendment, and after a vote had been taken the item was passed without further comment.