Private rail system ‘would cost more’

Press, 28 April 1981, Page 13

Private rail system ‘would cost more’

The public would pay more for a privately run railway system than for one run by the State, said the chairman of the Addington branch of the Railway Tradesmen's Association, Mr R. L. Broderick, in Christchurch.

Mr Broderick was replying ■to comments by the Nelson member of Parliament, Mr M. F. Courtney, reported in "The Press” of April 22. •- . “Mr Courtney would be better visiting and looking at all sections of the Railways to get a better understanding of the workings and the problems faced before trying to make political capital out of the loss incurred,” said Mr Broderick.

"Changing the Railways to a corporation or putting it up for sale to private enterprise is not going to alter the fact that provision will still have to be made for uneconomic but necessary social services.

When Mr Courtney talked about the Railways ’Department's loss of S9o’million he should remember that the taxpayer subsidised Nelson Transport and the people of Nelson for a few years, Mr Broderick said.

"I suggest Mr Courtney reads the Railways information booklet. 'Social Role.’ which clearly shows where the $9O million loss occurred. The people of New Zealand would pay more for a rail-, way system under private enterprise because of private enterprise’s 'profit at all costs’ philosophy.’’

Mr Broderick said that Mr Courtney’s vision that catering in the Cook Strait ferries be leased to private enterprise — with dining and dancing replacing "the cold pie on the cold plate" of the present service — would not be shared by many New Zealanders because of the extra cost involved.