PROTEST MADE.

Auckland Star, Volume LXIX, Issue 208, 3 September 1938, Page 12

PROTEST MADE.

RAILWAY COSTS.

AMENDMENT MOVED.

MR. COATES AND MINISTER.

(By Teleguph.—rarliamentary Reporter.)

WELLINGTON, this day.

"It is time someone entered an | emphatic protest against the trend of | administration costs on the railways," hotly declared Mr. J. G. C'oates 'National, Kaipara) in the House of Representatives yesterday afternoon, when the vote for this Department was under discussion. He added that expenses were outrunning revenue, and it was questionable as to where the present policy would end. It seemed difficult to place a finger on the cause, but the people were- being asked to carry an enormous burden. Mr. J. A. Lee (Government, Grey Lynn) : Interest on the balloon loop is one of the causes. Mr. C'oates: If you can show that the balloon loop is the cause of rising costs, well and good, but you must prove it. Government Voices: You prove that it is not. Mr. Coates said the Government had voted £7.779.665 for the railways last year, and for this year it was proposing to spend the colossal gum of £9,051,869. "The railways are merely paying run. ning expenses," he continued. "That i« a shocking position for a responsible Government to get into. This will all come back on the country. The people ■ will find that if the present trend is not checked they will be paying interest on capital charges, maintenance, and a de- ( ficit on running costs as well." Mr. W. A. Bodkin (National, Central Otago): The motor services are paying. Too High Already. Mr. Coates: Yes, they are paying, but here we are driving ahead building more railways that will only add to costs that are too high already. The way to settle this business is to move an amendment and clean matters up that way. Government members: Well you move it. Mr. Coates' time expired before he was able to reply. The Minister of Railways, Mr. Sullivan, in reply to Mr. Coates, said the complaint against losses came poorly from the right honourable membeV for Kaipara. Holding up a file the Minister said it contained a record of the losses made on the railways under the administration of Mr. Coates and his colleagues. The losses were well over £1,000,000 a year for several years. "These losses were made after the past Government had reduced wages and brought down the expenditure for the maintenance of rolling stock by £400,000 a year," continued Mr. Sullivan. "The past Government made numerous changes in the method of control from commissions to boards and ■ back to Government control, but still I the losses continued."

Improving Conditions.

The present Government had spent a couple of million pounds in two years in improving conditions on the railway cervices generally. Most of this money was spent out of revenue, and the expenditure had been made necessary as a result of the policy of the past Government. The present Government had made losses on the railways, but at least it had something to show for these losses. Its predecessors had nothing but losses to show for their administration. If Mr. Coates and hia colleagues wanted to show a bigger net profit on the railways they would have to «ay how they would accomplish that desirable end. They would either have to reduce wages and lower the conditions of the workers, or increase the freight* and fares. They could not have it both ways. Amendment Moved. The Leader of the Opposition, Mr. Hamilton, said the business of the railways had increased and revenue had gone up by nearly £2,000,000 since 1934, but as the business had increased the losses had increased. It was true that more rolling-stock was required to meet the increased business, but the rollingstock had not increased to the same extent as the business coming to the railways, and the deficit should have been reduced. Four years ago every £100 earned had cost £86 in expenses, but now expenses were £96. He moved: "That the working railways account of £9,051,869 be reduced by £5 as an indication that financial management of the railways has got out of hand." The committee divided on the amendment a few minutes later and it was defeated by 35 votes to 13, and the vote was approved without further discussion.