INCREASED CHARGES

Ashburton Guardian, Volume 59, Issue 44, 1 December 1938, Page 5

INCREASED CHARGES

PASSENGER FARES AND GOODS FREIGHTS TEN PER CENT. HIGHER ON RAILWAYS IN OPERATION FROM NEXT SUNDAY WEEK. (Special to the “Guardian.”) WELLINGTON, This Day. The Minister, of Railways (the Hon. D. G. Sullivan), in a statement to-day, announced an all-round increase of 10 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,” said 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 Britsh railways, for instance, 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.

parison is frequently made by those from overseas who understand the rail* way problem and who testify enthusiastically regarding the benefits enjoyed by the users of the railways in this country. V “Commenting upon the effect the increase was likely to have on the business of the Department insofar 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 wouldi 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 a/Tl 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 has decided upon in order to a satisfactory financial balance between the Department’s income and expenditure accounts.”

“A similar position existed in France,” continued the Minister, “where a 24. per cent, increase has been instituted. Quite recently the Queensland Government decided to increase the railway tariff by 5j per cent,, and this became operative from the first of the present month. AH 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 showiug 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. •

“It was with a knowledge of these facts and full information regarding the financial position of our own railways that ! I spoke during last session of Parliament,” said Mr Sullivan, “and indicated the possibility of an increase in railway charges at some future date. This possibility lias 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, ah "increase in fares and frei ghtsF 1 * '

Typical Illustration of Changes. “Taking a few typical illustrations, the ten per cent, addition to passenger fares will increase the Christchurch'Lyttelton 12-trip workers’ weekly ticket by 4d from 3s Gd to 3s lOd, or onethird of a penny per trip ; similarly tb,e Lower Hutt-Wellington 12-trip ticket will, increase by 5d from 3s 9d to 4s 2d or: .41d per trip. The ordinary second single fare from Christchurch to Timaru will be increased by lid/ from 8s lOd to 9s 9d, and from Christchurch to Dunedin by 2s, from 20/2d to 22/2d,” said Mr Sullivan.

The New and Old Rates. “I think everybody will appreciate,” continued the Minister, “that there are many good reasons which make it undesirable from the national view-point-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 wjhen a comparison is made between the railway charges in New Zealand and -those in other countries, particularly Australia,” continued Mr Sullivan. “This comparison, apart from any other aspect of the question, places the railways, of New Zealand in a most favourable light.” Mr Sullivan included a table showing the old and new single fares for various distances compared with those in Queensland, Victoria, New South Wales and Tasmania. The New Zealand figures are:

f ‘Coming now to freight rates,” the Minister continued, “based on' the average haul of all consignments for last year the increased rate on sheep will amount to less than one penny per head and on cattle approximately 7£d. Brown coal with an average haul of .126 miles will be increased for that distance by less than Is 4d per toil. The Govqrnment has come to-thte conclusion'that over the whole field of our passenger and goods operations - the alterations decided* upon, spread, as they are, equally over all classes- of traffic, while materially improving the net revenue position of the. Department, will not prejudicially aff-ect the trend in trade and industry generally.

Flattening of Higher Freight Charges. “Following upon the indication given in my first Railways (Statement presented -to Parliament wherein I stated that the railway tariff was to be critically reviewed in terms of the Government’s general policy with a view to simplifying the classification and rates, in line with present-day requirements, end the representations that have been made to me from time to time regarding the subject, a flattening out of the higher rates for general merchandise has been decided upon by Cabinet,” stated the Minister. “This decision will bring about the elimination of thte two highest classifications in the tariff (classes A and B) and their merging with the next lower classified rate (class C). This adjustment will not, however, Ire introduced until the commencement of the new financial year on the Ist April, 1939. In addition to the simplification ■of the tariff, which will be appreciated by the business community generally, the general effect of the adjustment will be to bring the method of assessing railway freights more closely into line with the practice followed by road operators. This decision,” ’ concluded the Minister, “follows on the purchase of those longdistance competing road services wjiich the Government has already decided upon. It also fulfils the promise made on behalf of the Government that a simplified method of railway rating would be introduced as soon as the Purchasing Tribunal has completed its work, which is now Rearing air end, so far as those services already listed for purchase are concerned.” In connection with the social services rendered by the railways of New Zealand, apart from those for which it is recouped through its. .revenue, account, the Minister said it must be recognised' that as far as practieablo the expenditure that- is economically made in the provision of railway transport facilities must be recovered in. the charges made to the users.

The following is a comparison of freight rates: —

Lowest Tariff Rate (Minerals).

“Made on the basis of .fares and freights alone, the eonjiparison proves beyond question the advantages still to be enjoyed by the users of -railways in New Zealand.

The present charges under the. highest tariff rate (general merchandise) are as follow, for the distances quoted above - Miles. 100 69/1 200 97/1 300 120/5 400 143/9. 500 .'. 167/1 As the Stationmaster at Ashburton has not received any advice in regard to the new freight- rates, a comparison of tire old and new rates between Ashburton and Christchurch cannot 'be given.

Services and Facilities. “This, however, is by no means tlie 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 eom-

Present fare New ■ fare Class Class Miles 1st 2nd 1st 2nd 20 3/1/11 3/4 2/1 30 4/4. 2/110 4/6 3/1 40 5/4 3/8 5/10 4/~ 50 6/7 4/6 ■ 7/3 4/11 60 ■7/11 5/5 8/9 6/70 9/2 6/3 10/1 6/1 80 10/6 7/2 11/7 7/11 90' 11/8 8/12/10 8/10 100 13/8/10 14/4 9/9 200 25/9 17/7 28/4 19/4 300 38/6 26/3 42/4' 28/11 400 51/2 34/11 56/3 38/5

Queensland. N.Z. Miles. per ton. per ton. (new rate) 100 13/2 13/5 200 22/10 19/300 2 6/5 22/G 400 33/5 25/5 500 38/8 28/3 Highest Tariff Rate (General Merchandise). Queensland. N.Z. .. Miles. per ton. ■ per ton. (new rate) 100 107/3. 70/- . 200 189/11 100/10 300 249/9 132/0 400 249/9 158/2 500 249/9 183/10