THE RAILWAYS.

Press, Volume LXVI, Issue 20038, 20 September 1930, Page 16

THE RAILWAYS.

SYSTEM OF ACCOUNTING. COMPARISON WITH CANADA. I*SB HESS Special Service.] WELLINGTON, September 19. A suggestion made the. previous day that the New Zealand Railway Department would do well to look to Canada far an example, was discussed by the Minister for Railways, the Hon. W. A. Veitch, in the House of Representatives to-day, when he said that the Dominion's Railway Accounts showed fasts, whereas if the system of accounting adopted in Canada were followed an annual profit could be shown. Mr Veitch said that if the House permitted the Railway Department to use the same system of accounting as was used by the Canadian Railways it would have shown a clear profit of £900.000 last year. As a result of the present system the true facts of the New Zealand system were shown, the outcome being that losses were made clear. If the Canadian system of keeping accounts were adopted a profit would be shown on paper, but not in fact..Under the system used in New Zealand the Department was carrying a great many "altruistic expenses." Mr M. J. Savage (Lab., Auckland ■West): And we are paying the piper. The Minister said that in Canada interest was being paid on the debentures which bought the private companies out when the State took over the lines. Not a penny was being charged on the total capital originallv invested. Mr E. J. Howard (Lab., Christehurch South'): That is very ungenerous to Canada. Mr C. Carr (Lab., Timaru): Whv make so much out of last year's lossesf The Minister: Last year's losses showed the actual commercial position of the railways according to true accountancy. Mr Carr: Why raise a scare? The Minister: The position in New Zealand is the actual position. Mr Carr: But it has been going on for years. The Minister said he thought he had given an answer to the point raised. The New Zealand Railways could show a clear profit on paper if they liked bot as a matter of fact the true position was shown. Mr Howard: That is not an answer, and yon know it it is very ungenerous to a sister Domnion. Mr W. Nash (Lab., Hutt): Do not those debentures take th'e place of capital! The Minister: It is only a matter of showing the figures in a different light. Mr W..L. Martin (Lab., Raglan): Do yon suggest that the Canadian Railways are not showing is true profit f The Minister: What I am saying is that if the Canadian Railways regarded its figures on the same principles as the New Zealand Railways regard them tfcey would show a substantial loss each year. I make th'at statement quite definitely. Passenger Accommodation. Complaints made by members that passenger accommodation on trains was is urgent need of improvement, drew from the Minister for Railways, the Boa. W. A. Veitch, a statement that it in intended to provide all second-class carriages with accommodation similar to that, of the old first-class carriages , it aooa as possible. The question was raised by Mr A. B. Artf* l (B* Chalmers), who said the carriages in the South Island bad rightly been described as "dog boxes," and is many instances this term was flattering. The Minister had said it was futile •to try to recapture lost passenger .traffic, bnt he considered the Depart- • meat should nevertheless give its attention to improving passenger accommodation. ' Mr Ansell also referred to Toad competition and questioned whether the Government eonld successfully comjpefts road services with its own , Mz F. Langstone (Lab., Waimarino) —l* the Department was very solicitous fer ita own comfort, bnt it did not apto show the same-concern for those who paid for the privilege of using the trains. The General- Manager had been provided with two luxuries ears, one 'fa each Island, but the accommodation Jfer passengers was disgraceful. Attention to carriages should be given <?n long distance trips, The whole of the fifst-elass carriages should -be ehanged to seeond-class. The Minister: We are doing that. The whole of the second-class will be made M good fts the old first-class.