RAILWAY FUTURE.

Auckland Star, Volume LX, Issue 245, 16 October 1929, Page 12

RAILWAY FUTURE.

COMMERCIAL OR POLITICAL ?

THE COUNTRY'S DEVELOPMENT

DISCUSSION IN. THE HOUSE.

(By Telegrnph.—Parliamentary Reporter.)

WELLINGTON, Tuesday.

The outstanding point in the discussion of the Railway Statement in the House to-day "was ting question whether the railways arc to be -airshcr commercialised or whether the former policy of utilising them tor tile' country's development, even at nil'apparent loss, should be continued. The opinion of the Right llpii. J. G. .Coates, former Minister of Railways, was that there had been during the past eight .01; nine years a gradual tendency towards commercialisation. As for .the ; State , making contributions .^6wards losses on- developmental lilies, that policy Jiad been followed with a sincere-desire to benefit the country,; and,it was lev the present Government to give a clear indication of its' intentions in that i'espect.

Mr. Savage. (Auckland J/last) suggested that the problem, appeared to be whether the railways ware to bo. regarded as a social service for the country's d'evlbpment, or whether they were to be commercialised. Be conteiided that a commercial policy could not be accepted, and he wondered what would be the railway freights "under such conditions. The chairman of the Victorian Railway Commissioners had referred to road transport skimming the cream of traffic. Mr, Parry (Auckland Central)': The railways do the dirty work. Mr. Savage, continuing, said that tlie same authority was able to show that the railways- were still indispensable. The .two services, rail and road, had both to bo paid for by the'community; and, in the face of this economic truth, he wanted to know whether co-ordina-tion of these services wa3 to be brought about, not only in the interests of the railway, but the road users. . Transport Minister's Opinion. The Hon. W. A. Veitcli, Minister of Transport, also contributed his opinions on this question. For many years, he pointed out, the railways had been permitted to lose a consider;!!lie. amount of money, so that they might develop the country and increase production. Experience had proved this policy to he absolutely wise, and, although there was a considerable loss every year, it had to be borne in mind that if the services were curtailed this would do very little towards relieving the burden of interest and sinking fund 011 capital sunk in the railways. Mr. Howard: We 'lose on the. roads, too. ■ ,;■ - : ■' ' ■ Mr. Veitcli: Yes, indirectly; but we know we could not carry 611 the business of the country without them. The railways and motor, services'should ,be looked 011' from very much the 'same points of view.