RAILWAY OPERATION AT A LOSS

Dominion, Volume 31, Issue 162, 5 April 1938, Page 15

RAILWAY OPERATION AT A LOSS

Investigation Urged

CHAMBER OF COMMERCE DISCUSSION Dominion Special Service. Wanganui, April 4. The suggestion that the Government should be asked to appoint a board of inquiry to investigate the reason why the New Zealand Railways are being operated at a loss was made by Mr. W. J. Gilberd at the monthly executive meeting of the Wanganui Chamber of Commerce to-night. After a long discussion, during which a divergence of opinions was heard, the matter was referred to the chamber’s railway committee. z

Mr. Gilberd quoted a sub-leader published in “The Dominion” on March 14 when reference was made to a fallingoff in net railway earnings to the extent of £154,000 for the first 44 weeks of the financial year which ended March 31, as compared with the previous financial year. He referred in particular to the operation of uneconomical truck rates between certain main centres and contended that the department was hauling freight at a loss. The tariff between Wellington and Palmerston North, for instance, was 12/6 a ton truck rate, a figure which must represent a serious loss to the department. Mr.. Gilberd added that during the 44 weeks under review the railways must have lost £50,000 on freight hauled from Wellington to Palmerston North. The chamber should take an active part in having these rates cut out.

The president, Mr. F. H. Bethwaite The whole thing is most unfair.

Mr. Gilberd added that the chamber might recommend to the Government that the board of inquiry set up to investigate the railway disaster should also be asked' by the Government to make an examination of the railway figures and find out the cause of the los.s in revenue. Mr. J. R. Franklin: It is a mistake, mixing this up with the Ratana affair. That should be left out altogether. I quite agree with the other suggestion that an inquiry board should go into the matter of revenue.

Mr. Gilberd: I merely suggested that to have something to go on. Mr. D. G. O’Toole said the railways were not paying. Costs had increased but the department was unable to 1-aise its freight rates simply because it was competing against road transport and coastal ships, which carried goods at economical rates. A voice: Government enterprise is always expensive. Mr. J. R. Keenan: As soon as private transport companies are absorbed the railway freight rates will go up. Mr. W. A. Izard: What object has the Government in operating these •truck rates .and running at a loss? Mr. A. S. Burgess: They maintain that they are not working at a loss. Mr. Izard: There appears to be no way of ascertaining whether one section is operating at a loss or not, so far as truck rates are concerned.

Mr. Gilberd pointed out that to take advantage of truck rates 12 trucks must be guaranteed each day by carriers. The same offer was made to Wanganui for goods consigned to Palmerston North, but the whole thing was absurd. Wanganui carriers turned it down because it. was impossible to guarantee anywhere near 12 trucks a day.

Mr. Franklin :. The thing we have to look out for is inefficient Government control.

Mr. Izard considered that the question should not be confined to the tariff operating between Wellington and Palmerston North, but that the cause of loss generally should be investigated. Inquiries should be made as to whether this loss could be rectified. After further discussion the meeting agreed to refer the matter to the chamber’s railway committee.