NEW ZEALAND'S FUTURE.

Press, Volume LXVI, Issue 20088, 18 November 1930, Page 11

NEW ZEALAND'S FUTURE.

♦- SIR OTTO NIEMETIBR OPTIMISTIC. THE DANGERS AHEAD. [THE PRESS SSeciil Service.] AUCKLAND, November 17. Sir Otto Niemeyer, who is returning to England from his visit to Australia and New Zealand, arrived by the Niagara from Sydney. lie was accompanied by Mr E. it. Kershaw, liaison officer between the Bank of England and other banks of the Empire. "My report on the banking, currency, and exchange problems of Hew Zealand will not be ready until after Christmas," said Sir Otto. "I have not had time yet to prepare it, but will do so as soon aa I get back to London. New Zealand, of course, is in a much better position financially than Australia, but you will have to watch very closely what is going on over the other side. You have had some examples of the dangers ahead of you." So far as New Zealand's future was concerned, Sir Otto Nicmeyt-r said he was an optimist. "Given sanity and sobriety, I think New" Zealand will be all right," hd declared. J.ire iu some of the Australian cities, particularly Sydney, he said, was unduly luxurious and expensive for a young country. "Sydney's pupulation is far too big for the size of the country in its present sparsely populated state,"' he went on to say. "Bulging, I think, has been a little overdone in Sydney; There are flats to let all over the place. In the country, of course, living is hard and healthy, but in the cities life seemed to me to be too luxurious to be good."

Railway Control. Speaking or tlje condition of the Kew Zealand railways, a subject upon which he expressed his views while in the Dominion in September, Sir Otto Niemever said it would be worth while considering ivhpther the State, while retaining ownership, should not place the management directly in the ban<|s of an independent Board "having' perhaps a whole-time chairman and directors receiving small fees for attending periodical Board meetings. Members of the Board could be appointed for a period of years and control every aspeet of railway policy, including tha fixing of fares and tariffs and the determination of what lines should be constructed. Borrowing, however, he suggested, should be left in the hands of the State. Sir Otto Niemeyer said that example* were to be found in the cases of oermany, Belgium, and Austria, which before the w : ar had StateTControlled railways. They had since been handed over so far as thei? management was concerned to special Boards. A similar policy had been adopted in England with regard te broadcasting, which was placed in the hands of a corporation consisting ov: five or six independent people nominated by the State for a period of years. Another example was the Victorian State Electricity Commission, which pqssessed full powers except those of borrowing. The fact that the Royal Commission, which enquired into the railway position in New Zealand had already reported in favour of management by a, board of directors greatly interested, him. The finding, he considered, was on the right lines. "My visit to Australia and New Zealand has been most interesting," he added. "New Zealand has a greater appeal than Australia 'when one is" travelling, chiefly" owing "to the fact that yeii have such s great variety of scenic attractions, such" as lake and river scenery, snow and and hot springs and "geysers, all within a comparatively small compass. Distances in Australia are so great that travelling is neither so interesting nor comfpFt&ble. J'our hotels are good, and hotel tariffs, :ompared with England and other parte )f the Empire, are reasonable. It jppnld je unfair to draw comparisons with the :ow cost of travel in Europe, fam pnly lorry there is no more time ftir flje to ipend in Jsew Zealand."