Social Benefit Studies Of N.Z. Transport Needs?

Press, Volume CII, Issue 30287, 13 November 1963, Page 16

Social Benefit Studies Of N.Z. Transport Needs?

(New Zealand Press Association) WELLINGTON, November 12. The need for transport research to help reduce costs is underlined in many places, if only by implication, in “Transport in New Zealand,” a Transport Department survey released today. Research is necessary if New Zealand is not to lag behind the rest of the world in the transport field, says the survey.

“Opinions will differ widely on the content of the programme to be followed," says the survey. “It is clear that the country would profit from long-term fundamental research into transport pricing, cost and market structures and the allocation of transport resources."

It comments on research to establish a clear picture of individual transportation in the United States, and states that commercial considerations are not necessarily the soundest criteria for the evaluation of transport policy. As a result social benefit studies have been undertaken in some areas.

In Britain, for example, a new underground railway is being built to link Victoria. Euston, and King’s Cross stations in London in spite of the probability of an annual financial loss. A social benefit study showed that the new line was likely “to give a social return of from 11 to 15 per cent on the capital invested.” “Such social benefit studies, which show the wider effect of policy.” says the survey, “are a comparatively new development and have a particular relevance to New Zealand. “A substantial contribution can be made to New

Zealand's economic grow’th by following closely overseas progress in transport research, and by local adaptation, where profitable, of overseas findings into the framework of the New Zealand social-economic situation.

"With the addition of necessary local original research, attention to progress in the economics of transport should bear rewarding dividends in more efficient inland transport for New Zealand.” Even the Soviet Union is undertaking transport research, says the survey. A footnote to one of the documents says: "In the U.S.S.R. the methods of econometrics and mathematical economics. long frowned upon as savouring of capitalist philosophy, have at last become accepted. “A speaker on the application of economic-mathe-matical methods to the draw-ing-up of rational transport systems told a conference in 1961 that the application of such methods held the prospect of a reduction of 13 to 15 per cent in total transport expenses.

“Examples were quoted of marked reductions in empty running in road transport and similar methods are being applied to rail and sea transport.”