RAILWAY CONTROL.

Auckland Star, Volume LX, Issue 245, 16 October 1929, Page 8

RAILWAY CONTROL.

A POLICY QUESTION.

POLITICAL OR COMMERCIAL?

VIEWS OF EX-MINISTER.

DEFINITE IMPROVEMENT SHOWN.

(By Telegraph.—Parliamentary Reporter.)

WELLINGTON, Tuesday.

What is the future administration and control of the New Zealand railways to be? Is it to be a matter of further commercialisation, or is the administration to be brought still further under political control? Are the operating railways to be burdened by further extensive and expensive additions? These and other important questions were raised in the House of Representatives when the Leader of the Opposition (the Right Hon. J. G. Coates), ex-Minister of Railways, opened the debate on the Railways Statement this afternoon. The great point to be settled was one of policy, said Mr. Coates. At an early date the House should make a decision in that connection. He said bis own view was that the railways should be further commercialised. During the past eight or nine years the tendency had been a gradual but definite movement in the direction of commercialisation. The first step had been the 'separation of the railway accounts from the Treasury, and the next step was the system of providing for renewals (hit of the railway accounts. It was all part of the sound and,definite policy of making the railways provide their own requirements. Still another step had been the complete overhaul and redesigning of the railway stores. The stores had been made to represent cash, in the sense that if the smallest bolt was lost cash had been lost. Mr. F. Langstone (Waimarino): You lost a few bolts at Palmerston North. Some Hopeful Signs. Train control had been another recent reform, said Mr. Coates, and another improvement was the adoption of a system of modem statistics, revealing losses and increased costs. Intelligent interpretation of those statistics was very lielpful. This year's Railways Statement showed that the results of these reforms had been to some extent effective. Especially was this true _in relation to the percentage of operating expenses to earnings, where an improvement had been shown. There was a slight increase in the operating earnings per train miJe. Taken all round, these factors revealed the first indication of economy in relation to the Railway Department. In Mr. Coates' opinion the signs were quite hopeful. "If we make a comparison with the position in years gone by I think we find that things do not appear as doubtful as they might appear at first glance," continued Mr. Coates, "The accounts as kept to-day are kept by the right and only method." Developmental Lines. "Is the State justified in making contributions towards developmental lines?" asked Mr. Coates. He said there could be no question as to the sincerity of pur- ! pose in this connection in the past. It was time tlio Government gave an indication of the policy to be adopted. The position was analagoqs to that of a private company running the railways, and finding that it could not continue to operate. the system. Would it be wrong, in those circumstances, for the Government to step in and make arrangements to carry on a service in the interests of the country? It was all very well to talk'"about rooting up branch lines, but the real question seemed to be whether such branch services might not be replaced with something sufficient for the needs of the locality. Control By Directors. "Is the country ready to accept the system of control adopted in Canada, where they have thirteen or fourteen directors with a president or general manager," asked Mr. Coates. Would it be possible to have the New Zealand railway run by thirteen or fifteen directors selected to represent various community groups? If so, should they be appointed by the Government? In Canada the State railways were treated as a company, and the directors were appointed by the Government. The Leader of the Labour party: Something like the Railways Board we used to have? Mr. Coates: No, the Railways Board more nearly resembled the commissioner system. It was important that a definite policy should be settled, continued Mr. Coates, because we were spending millions on road and railway construction. If there was to be a loss, only the taxpayer could be looked to. Mr. Coates said he had read numerous books concerning railway administration, in relation to severai countries, but it was "difficult to make them fit in with New Zealand conditions." South Africa had similar conditions, but with a much longer stretch of railway, and Canada had somewhat similar conditions. The success which had .attended the method of administration in Canada was well worth considering. Limiting -The Operating Field. Mr. Coates asked what the position was to be if the policy was to be one of throwing on to the operating railways miles of new and expensive lines. Some lines might cost £30,000 a mile. The train of Mr. Coates' argument was shattered at this stage by Mr. Speaker's warning bell, and someone moved that the Opposition leader's time be extended. "No, I shall not take more than my half hour," said Mr. Coates, "although it is impossible to deal with the subject in that time. I am afraid that cutting down spoils what I had hoped to make at any rate intelligible. I can deal with other questions ( when we are on the Estimates." \ New Rolling Stock Wanted. Mr. Coates wound up vigorously, by asserting that it would be impossible to have good management if hopeless lines, which never had and never could bo justified, were to be piled on to the operating railways. "On the other hand, it would be better if we said to the 18,000 railway men, there is your work, there is your field, go ahead and make a success of it." All that the general manager was asking for was a lead as to what he should do. As far as road and rail traffic was concerned, much care would have to be exercised. Public Works jobs should not be allowed to interfere with the success of the operating lines. ' "We want up-to-date passenger cars," concluded Mr. Coates. "I would almost wo as far as to say that some of our first-class cars are fit only for second class. They are cold and uncomfortable; and the water comes in on rainy days." Mr. W. E. Parry (Auckland Central): Why not abolish the second class altogether ?