HUGE LOSSES

Evening Post, Volume CXIII, Issue 40, 17 February 1932, Page 7

HUGE LOSSES

WHAT IS THE REMEDY V

XF>rim "The Post's" Representative.) SYDNEY, 11th February.

Por the first time since railway deficits have threatened the financial stability of Australia there has come an opportunity: for a 'general overhaul jof the railway system of,the Common-' health. <The railways, because, so many of them have Been purely political, constitute the greatest problem in' Australia to-day, ■ and more than a-nything else are responsible for the financial crash of all the Governments. ~ In ten , years the railways "systems controlled ty. the Commonwealth and the States have lost £43,000,000, and each month that loss is growing. ' New.South. Wales alone has made: some effort.to counteract the position by passing a drastic Transport Act, but that Act has- the fault of forcing the country back- instead of forward. It seems to most people ridiculous to force the people to Use some form of transport which is not popular, and which may not be in keeping with progress. Something more than that is necessary. It can be said for certain that financial equilibrium is impossible until rail-' way deficits are brought within reasonable bounds, and it is not surprising, .therefore, that the Premiers' Conference should have ordered a complete investigation. The Board of Inquiry will; .have an independent chairman—an accountant of high standing—but it seems unfortunate that it will be composed largely of the Railway Commissioners themselves. The idea put before the Premiers by the Commonwealth Transport Department was that the Commonwealth should take over the whole of the assets and liabilities of the railway systems. This has led to the comment: "'To ask the Railway Commissioners to Report on such a proposal is like ask.ing politicals to report' on. the1 abolition of all Parliaments." Whatever faults there may be in the ./constitution, of the board it is felt that Jvaluable facts must be brought to light rT *V These might lead to an investigation on more comprehensive lines lindertaken. by. people who have no interest in the management of the rail'(.■ways or other forms of transport. It is held that the place of the. Commissioners is not in the judgment box, but tin. the witness box, and the Premiers 3iave been taken to task in many quarjters for allowing. the Commissioners to .capture the inquiry. The railway losses :are staggering. : For the year ended 30th June, 1930, the deficits aggregated '£9,500,000. During the year ended 30th June last, the losses aggregated ■£11,000,000. The capital invested in ■Australian railways amounts to .'£ 344,000,000, , of, which. £100,000,000 "was spent during the last ;ien years. Here are the proposals of the Transport Department upon which a special Tepdrt will be prepared i— . (1) Transfer of all assets and liabilities of State railways to the Commonwealth.; (2) creation of a national'rail*ways. corporation.: to operate the railways under conditions that would safeguard Government finance, and act as an intermediary'between State ownership and direct operation; (3) capital-' isation of the national railway corporation in an. amount, based upon the present earning capacity of the railways, and transfer of the balance of existing railway capital to a "railway dead asset fund,' 3 to be liquidated' ovbr a period of years. The report expressed ;the view that only by some' such means could railway finance be-stabilised, and some of the present burden,, of ■£9,000,000 a year upon the State Governments be removed.