MANAGER OF RAILWAYS

Press, Volume XCI, Issue 27576, 5 February 1955, Page 6

MANAGER OF RAILWAYS

MR H. C. LUSTY’S TERM EXTENDED

PROBLEMS OF FUTURE ADMINISTRATION (From Out Own Reporter) WELLINGTON, February 4. Although the General Manager cf Railways (Mr H. C. Lusty) was scheduled to retire today, his term has been allowed to continue indefinitely. The Minister of Railways (Mr J. K. McAlpine) had no statement to make this afternoon, after he had had discussions in his office with Mr Lusty. This is the second extension of term which Mr Lusty has received. He was appointed General Manager of Railways in July, 1951, and his 40 years’ service in the department was completed seven months ago. His term was then extended. The decision to allow Mr Lusty to continue as General Manager is bound up with the whole future of railways administration, and with the future ol the Railways Commission in particular. The commission was appointed late in 1952 for a term of three years, which will- expire next October. It assumed office on January 12, 1953. Its stated objective was the provision and maintenance of efficient and economical passenger and goods services for use by the people. Its basic policy decisions required that -the railways should meet operating charges, and make a reasonable contribution to interest charges; that the fullest appropriate use should be made of rail transport; and that every effort should be made to encourage good staff relationships to produce greater efficiency. There is now considerable speculation in the Railways Department about its future administration. The present Minister, who took over the portfolio from Mr W. S. Goosman after the Cabinet reorganisation last December, is taking time to consider future decisions. He has the alternative of not reappointing the commission next October and reverting to control by a General Manager, or of abolishing the position of General Manager and giving full control to the commission. It is understood that he considers he has not yet had sufficient opportunity to study the problems involved, and to make a decision.