N.Z. RAILWAYS

Evening Post, Volume CVI, Issue 103, 29 October 1923, Page 6

N.Z. RAILWAYS

"SUBSIDISING INDUSTRY"

NON-PAYING CHARGES

CRITICISM BY "FINANCIAL TIMES."

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UOnftALUM - MIW «ILAND CAM AI6OCUUON.)

(Received 29th Ocober, 11 a.m.) LONDON, 28th October. The "Financial Times," commenting on the report of the New Zeakind railways, says that one of the features of the administration that will not-be regarded with unmitigated satisfaction, is the virtual subsidising of industry at the expense of transportation. "Thus vye find that many services are perfoiimed below cost, which means at the cost of other users and of the taxpayers. Lime for manuring farmlands was carried 4 - 506,500 ton-miles for a trifle over, a farthing a ton per mile/ Butter, cheese, and road-metal, the latter being for the benefit of motor competition and entailing a loss of £50,000 per annum, were in! much the same position. In many other instances exceptionally low rates were granted to assist in establishing industries which - are now flourishing, '. but still remain in force although the need for such help is past. "The Minister of Railways states that any increase in freight rates at this.juncture to enable the railways to earn interest charges would tend to divert more traffic to the roads. We imagine that a solution of the problem could be found in ceasing to subsidise flourishing or com-; petitive industries." ■ j