DEPARTMENT’S REPLY

Dominion, Volume 26, Issue 103, 25 January 1933, Page 8

DEPARTMENT’S REPLY

Railway Station Buffet Charges Referring to “Observer’s” letter in Tuesday’s “Dominion” complaining of railway buffet charges, the Railway Department states: “The whole position in regard to the working of the refreshment branch of the railways was carefully investigated by the board and a full statement upon this subject appeared in the Railways Statement for 1932. This statement was reproduced in the Press in October last. “The board also reviewed the price charged for refreshments at the counter rooms, and in the statement referred to above said :— “ ‘The board commenced with the definite objective of reducing charges if that could be justifiably done. As the figures in this statement show, the branch does not by any means return an excessive profit, and this in itself shows that, unless any reduction in prices would result in a stimulation of business that would more than balance the loss of revenue that would result from that reduction, such a reduction could not be made without jeopardy to the financial return from the refreshment service. . . . Almost the whole of the business is done under conditions which require a very rapid service. . . This is a rather important differentation of the railway business from an ordinary refreshment-room business, and must have an inevitable effect on the position of the branch in relation to price. The board is emphatic that the standard of service, both as to quality of provisions and otherwise, must be maintained at a high point, and the board is satisfied that this is being done. It also has felt bound to conclude, as already mentioned, that this standard of service cannot be maintained under present conditions at a lower range of prices than that now operating if a financial loss is to be avoided.’