RAILWAY CHARGES

Wairarapa Times-Age, 1 December 1938, Page 7

RAILWAY CHARGES

GENERAL INCREASE IN FARES & FREIGHTS COMING INTO OPERATION ON DECEMBER 11. MINISTER'S ANNOUNCEMENT. (Special to the “Times-Age”) WELLINGTON. This Day. The Hon D. G. Sullivan, Minister of Railways, in a statement to the Press today announced an allround increase of ten per cent in railway fares and freights (including the charges for conveyance of goods by road). The increase will operate from and including Sunday, December 11. “The Government.” stated Mr Sullivan. “has deferred as long as possible adopting the course followed by Great Britain and other countries, which, owing to increased operating costs, raised their railway fares and freights some time ago. The British railways, for instance,” said the Minister, “had found their costs for stores and materials increasing to such an extent and their wages bill rising so rapidly that they were compelled to apply to the Railway Rates Tribunal for authority to increase (their tariff charges.” “A similar position existed in France,” continued the Minister, “where a twenty-four per cent increase has been instituted. Quite recently the Queensland Government decided to increase the railway tariff by five and a half per cent and this became operative from the first of the present month. All railway administrations have been feeling the pinch of rising costs, the working expenditure of the South African Railways for the four months of the current year from April to July showing an increase of £805,225 compared with the same period last year, notwithstanding a decrease of £380,177 in their gross earnings. A recent message from England indicated that the financial position of the British railways ’was causing concern despite the tariff increases. CHOICE OF REMEDIES. “It was with a knowledge of these facts and full information regarding the financial position of cur own railways that I spoke during last session of Parliament,” stated Mr Sullivan, “and indicated the possibility of an increase in railway charges at some future date. This possibility has never been lost sight of and has been more or less constantly under review. As I have stated on several occasions the Government had two major remedies for adjusting the railway finances. Firstly, a reduction of wages and salaries or alternatively an increase in fares and freights.”

“I think everybody will appreciate,” said the Minister, “that there are many good reasons which make it undesirable from the (national viewpoint to follow the first course leaving only the other alternative to be adopted as was done in Great Britain and the other places I have mentioned. “The desirability of following the latter course will-be clearer and better appreciated when a comparison is made between the railway; charges in New Zealand and those in other countries, particularly continued Mr Sullivan. “This comparison, apart from any other aspect of the questibn, places the railways of New Zealand in a most favourable light.” NEW ZEALAND’S ADVANTAGE. Having compared in detail the railway fares and freights ruling in New Zealand and in several Australian States, the Minister added: “Made on the basis of fares and freights alone, the comparison proves beyond question the advantages still to be enjoyed by the users of railways in New Zealand/

“This, however, is by no means the whole of the story,” said the Minister, “important as it is to every user of railway transport. The quality of and the recent improvements in the Department’s services and facilities provided at such favourable rates is another aspect with which New Zealanders should well be pleased and this comparison is frequently made by those from overseas who understand the railway problem and who testify enthusiastically regarding the benefits enjoyed by the users of the railways in this country.”

Commenting upon the effect the increase was likely to have on the business of the Department in so far as freight generally and passenger traffic were concerned, Mr Sullivan stated that a careful survey of the increase as applied to typical cases showed that it was not anticipated that any material loss of business would ensue. Speaking this year after several months’ experience following on the increases made by the British railways, Sir William Wood, on behalf of the London Midland Railway, stated that after a careful examination of the position the companies considered that there had been no important loss of traffic which could be ascribed to the increase in charges and he was supported by Sir Walter Monckton, K.C., who spoke on behalf of all the railway companies.

“As the tabulation clearly shows,” continued the Minister, “the fares and freights in New Zealand, after adding the ten per cent increase, compare more than favourably with those in force on the Australian railways and if the policy of the ‘user paying’ is to be continued in a reasonable way no logical objection can be raised to the alterations that the Government hasdecided upon in order to maintain a satisfactory financial balance between the Department’s income and expenditure accounts. (Continued on page 4.)