Mr Kirk Attacks Rail Fare Rise

Press, Volume CVI, Issue 31238, 9 December 1966, Page 1

Mr Kirk Attacks Rail Fare Rise

fN.Z. Press Association) WELLINGTON, Dec. 8. The Leader of the Opposition, Mr Kirk, today criticised the recently announced increases in rail freights and fares and described them as “a poor Christmas present.” Mr Kirk said that thousands of New Zealanders who would be affected by the changed rates would not regard very

happily an Administration which, it appeared, deliberately concealed its intentions during the whole of the election campaign. He said the Government had sought “a blank cheque” from the electors with vague assurances that it had nothing drastic in mind. Other Movements Mr Kirk said: “The increases in rail freights and fares will cause some apprenhension in the minds of telephone subscribers, electricity consumers, State tenants, and others who have found in the past that direct charges have increased in association with movements in rail charges.

“There can be no justification for the Government not revealing its intentions and there will be some scepticism

about the claims of the Minister of Railways that he had to do this because of a nominal change in wage rates.” Mr Kirk noted that the annual report of the Railways Department for the year ended March 31, 1966, stated that the working profit of £1,683,852 made by the railways was the best result for 11 years, and in the light of the necessity to put aside special reserves for increased wage rates this was most satisfactory Indeed. “Another Step” Mr Kirk said: “Few people trill be impressed by the Minister’s claim in view of this statement in the annual report. “Even worse is the fact that in increasing the cost of L-res and freights the Minister has taken another step along the

road to pricing the railways off the market, a point he himself was quick to make as far back as 1958.” Mr Kirk said that increased freight rates would hinder the decentralisation of industry and raise costs generally. Increased fares—particularly suburban fares—meant increased costs of earning an income from a group of people who were not permitted by this Government to claim their travel expenses as an expense occurred in the production of their income, and thus as an exemption for income tax purposes. Mr Kirk said increasing rail fans tended to drive people towards going to work in their own motor vehicles, producing a trend which aggravated the problem bf traffic congestion.