THE RAILWAYS.

Press, Volume LXVI, Issue 19971, 4 July 1930, Page 12

THE RAILWAYS.

new stations and DEPOTS. HEAVY DRAIN ON FINANCES. [TH2 PBEBB Bptcia! Service.] WELLINGTON, July 3. The policy of undertaking what he termed "fancy jobs," involving expensive reorganisation which would probably lead to severe losses, was criticised by the Minister for Railways, the Hon. W. A. Vedtch, during the debate on the Address-in-Rcply in the House of Representatives to-day. In particular, the Minister expressed his concern at the expenditure upon the new Auckland and Wellington railway stations and yards, denouncing branch lines, and upholding the Government's policy of completing main lines. Discussing railway works undertaken by the present Government, the Minister said that there was only one in hand whidh had not been started by the Reform Administration, and there had becm no Commission to investigate previous works, although the Leader of the Opposition had suggested that presant constructional activities should be subject to such a survey. He had just received a report from the General Manager of Railways upon branch lines in fcoth Islands, containing facts and figures as well as suggestions as to how it might be possible to reduce the cost of running the New Zealand railways. North Auckland Line. In the General Manager's report upon the Waiotira-Kirikopuni line, it was pointed out that the section was reported upon to the Government in August, 1627, by the chairman of the Railway Board, who estimated that the loss on the line would be £77,000 a year after making allowance for the subsidy of £IO,OOO a year that was at that time boing received on the Okaihau section. Inasmuch as the subsidy was not being received the loss wss estimated at £87,800 a year. This included £72,800 for Interest, so that there was an estimated operating loss of £15,000. A Labour member: Who bniit tho railway? The Minister: The Reform Government. He added that he did not think that the figures he had quoted overestimated the position. Thev were based on the revenue of the Okaihau line doubled, and that of the Waiotira section quadrupled, so that a very liberal view had been taken. He accepted the statement of the Leader of the Opposition that certain investigation# wore made before the construction of tho line was undertaken. The present Government had laid down its policy in regard to the reduction of losses on rallwnv services. Hp desired to remind Mr Coates that the losses on the railways were not so much due to the building of main lines carrying through traffic, but to the very heavy expenditure in other directions.

Workshops' Reorganisation. The reorganisation of the workshops was an instance of this. The chief mechanical engineer reported to Mr Coates that the estimated cost of this reorganisation would be £1,900,000, but before it was completed it would cost £2,500,000. , A . Mr Coates: There has been a lot or additional work. The Minister said he was willing to assume that the first estimate was no* complete. However, the chief mechanical engineer had advised that the reorganisation would mean a saving of £270,000. However, in the first year of their operation of the new shops the cost of repair work had increased by £556,000. In fairness it had to be explained that during the transition stago there had accumulated a considerable amount of work, and the rolling stock had got into a very bad state. A Labour member: It still is. The Minister said that accumulation of work had to be Bet alongside the difference in cost. However, so far 8S he could judge, there was going to be a considerable loss on the workshop reorganisation scheme.

Costly Depots. Discussing the scheme for the construction of new railway stations and dopots, the Minister said it had imposed a very heavy loss upon the finances of the Department without increasing the Department's oarning power at all. The large depots at Wellington and Auckland were going to cost more than the old to run, and they would be a constant load on the finances of the Department. It was interesting to note that the construction of the missing link in the South Island Main Trunk line would cost just about as much as the reorganisation of the Auckland railway station and its environs. Although he had not yet had a chance to go fully into the question of finances, from what he had seen already he was afraid that there had been carelessness shown in the drafting of expenditure. Mr Veitcli said large sums of money had been spent without investigation being made as to the value of the work to be undertaken or what the financial result would be. "It is not so much the connecting up of the main lines and the giving of a better service to the people that is going to increase the cost of the Railway Department," he said. "It is the big fancy jobs, the building of expensive tunnels and extravagant and ambitions expenditure on reorganisation of railway depots and workshops that are crippling the railway finance."

CANTERBURY BRANCHES. [THE PRESS Special Service.] WELLINGTON, July 3. Arising out of the decision of the Minister for Railways to make stringent outs in the South Island railway services, Mr D G. Sullivan (Lab., Avon) gave notico in the House of Representatives to-day to ask the Minister whether he is aware that the branch railways in Canterbury, on which he intends to discontinue services, were built by the Old Provincial Government at the expense of the people of Canterbury, and not by the General Government at the expense of the Dominion. He also intends to ask whether the Minister hae given these branch line* credit for the land and development values which have been created by them, and, if /not, whether it is fajr to deny the railways generally credit for such values in determining whether lines are payable propositions.

CURTAILMENT OF SERVICES. (JBXSS ASSOCIATION TELCOKAM.) INVERCABGILL, July 8. The ourtailment of railway servicaa which eatoet lnt# affaot an, JaJy 134$

was discussed by the executive of the Invercargill Chamber of Commerce today, and the following resolutions were carried:—

"While commending the action of the Government in cutting down unnecessary railway services, this Chamber strongly appeals for a daily mail service between Invercargill and the North Island, which is essential for the interests of Invercargill and Southland. The proposed service also seriously delays the arrival and departure of English, Australian, and other overseas mails." "If the branch line reductions affect the farming and other interests of Southland, the Chamber should cooperate with the Southland League and Farmers' Union to bring the matter ber fore the authorities for consideration."

PERSONNEL OF COMMISSION. (PSSSS ASSOCU.TIOH TSUXMMI.) HAMILTON, Julv «• At a meeting of the Frankton branch of the Amalgamated Society of Rail* way Servants, the following resolutions were carried: — "That this branch of the A.S.R.B. expresses disappointment at the aoninclusion of a railway employee or employees' representative on the Railway Commission, and urges that the place of Mr G. W. Roid, of Dun* edin, be filled to the A.S.R.S. general secretary, Mr L. Mcflvride, Wno is fitted by practical railway experience abroad ana in New Zealand, and by Parliamentary duties when on the Railway Committee, to occupy a seat on the Commission/' "This branch also considers that the order of reference should be extended to investigate the capital cost of all lines, and the interest being paid on loans for their construction with & view to ascertninine if the railways are over-canital i^ecl. the amount of dead capital carried, and if fhev are loaded with the accumulated deadweight of construction costs over a neriod of 60 rears, whottw interest on the iroriev invested can be earned bv thf* amount of live capital at pre"»«nt invested."