Ferry Not Subsidised By Notional Railway

Press, Volume CVI, Issue 31092, 22 June 1966, Page 20

Ferry Not Subsidised By Notional Railway

(From Our Own Reporter) WELLINGTON, June 21. The notional railway scheme operating between Blenheim and Nelson does not subsidise the rail ferry service between Picton and Wellington.

This point was made clear by the General Manager of Railways (Mr A. T. G. Gandell) today.

He was commenting on an article in “The Press” on Monday about the rise in the notional railway subsidy since the scheme was introduced in 1957.

“There is no evidence,” said Mr GandelL “that ferry traffic has benefited as a result of the notional railway scheme. “In the initial operations of the Aramoana a marginal tonnage of goods passing over the notional railway was carried on the ferry service. However, this tonnage has decreased in recent times, being about 1900 tons lower in the year ended 31 March, 1966, than In the previous year. This tonnage produced only a little over 1 per cent of the Aramoana revenue.

“In most instances, it Is cheaper to consign goods by rail and ferry between Wellington and Blenheim, and to have them conveyed by road at standard road rates between Blenheim and Nelson, rather than to through-book between Wellington and Nelson via the notional railway, and even in the few cases where the notional rates are cheaper many factors other than cost Influence the choice of route and mode of transport”

Mr Gandell said that the advent of the rail ferry in August 1962 did not make a notable difference to the amounts of subsidies paid out Increases in the annual subsidy payments arose mainly from other factors altogether. Mr Gandell explained that the cost of the scheme would rise or fall depending on the type and volume of traffic, the points of origin or destination of the goods, and the relationship between road and rail rates at a particular time. Main Increases The principal increases In goods traffic between Nelson

and Blenheim since 1957 had been in serpentine rock and manures moving between the Nelson and Christchurch areas. Mr Gandell also said that the accumulated net profit of £2,600,000 earned by the Aramoana since August, 1962 was not held in an account outside the working railways account as stated by the contributor. This sum had been credited to a special reserve within the working railways account as part of the process of keeping the ferry results separate from those for railway operations.