10 PER CENT. ALL ROUND

Evening Post, Volume CXXVI, Issue 132, 1 December 1938, Page 10

10 PER CENT. ALL ROUND

TO OPERATE FROM DECEMBER 11

The Hon. D.G. Sullivan, Minister of Railways, in a statement

to the Press today, announced an all-round increase of 10 per cent, in railway fares and freights (including the charges for conveyance of goods by road).. The increase will operate from and including Sunday, December 11

"The Government," stated Mr. Sullivan, "has deferred as long as possible adopting the course followed by Great Britain and other countries, which, owing to increased operating costs, raised their railway fares and freights some time ago."

"The British Railways, for instance," said the' Minister, "had found their costs for stores and materials increas-i ing to such an extent and their wages bill rising so rapidly that they were compelled to apply to the Railway Rites Tribunal for authority to increase their tariff charges. "A similar position existed in France," continued the Minister, "where a 24 per cent, increase has been instituted. Quite recently the Queensland Government decided to increase the railway tariff by 5J per cent, as from November 1. All railway administrations have been feeling the pinch of rising costs, the working expenditure of the South African Railways for the four months of the current year from April to July showing an increase of £805,225 compared with the same period last year, notwithstanding a decrease of £380,177 in their gross earnings. A recent message from England indicated that the financial position of the British Railways was causing concern, despite the tariff increases. "It was with a knowledge of these faots and full information regarding the financial position of our,/own railways that I spoke during last session of Parliament," stated^ Mr. 'Sullivan, "and indicated the possibility:. of an in•crease in railway 'charges at some future date. This possibility has never been lost sight of and has been more or less constantly under review. As I. have stated on several occasions, the Government had two major ;remedies for adjusting the railway finances. Firstly, a reduction of wages and salaries, or alternatively an increase in fares and freights. I think everybody will appreciate that there are many good reasons which make it undesirable from the national viewpoint to follow the first course, leaving only the other alternative to be adopted as was done in Great Britain and the other places 1 have mentioned. LOWER THAN AUSTRALIAN RATES. "The desirability of following the latter course will be clearer and better appreciated when a comparison is made between the railway charges in New Zealand and those in other countries, particularly x Australia," continued Mr. Sullivan.' *"This comparison, apart from any other aspect of the question, places the railways of New Zealand in a most 'favourable light, as the following tabulation will show: —

Minister continued, "based on the average haul of all consignments for last year the increased rate on sheep will amount to less than one penny per head and on cattle approximately 7£d. Brown coal with an average haul of 126 miles will be increased for that distance by less than Is 4d per ton. The Government has come to the conclusion that over the whole field of our passenger and goods operations the alterations decided upon, spread, as they are, equally over all classes of traffic, whilst materially improving the net revenue position of the Department, will not prejudicially effect the trend in trade and industry generally.

"Following upon the indication given in my first Railways Statement presented to Parliament wherein I stated that the railway tariff was to be critically reviewed in terms of the Government's general policy with a view to simplifying the classification and rates, in line with present-day requirements, and the representations that have been made to me from time to time regarding the subject, a flattening out of the higher rates for general merchandise has been decided upon by Cabinet," stated the Minister, "This decision will bring about the elimination of the two highest classifications in the tariff (classes A and B) and their merging with the next lower classified rates (class C). This adjustment will not, however, be introduced until the commencement of the new financial year on August 1, 1939. In addition to the simplification of the tariff, which will be appreciated by the business community generally, the general effect of the adjustment will be to bring the method, of assessing railway freights more closely into line with the practice followed by road operators,

"This decision," concluded the Minister, "follows on the purchase of those long distance competing road services which the Government has already decided upon. It also fulfils the promise made on behalf of the Government that a simplified method of railway rating would be introduced as soon as the Purchasing Tribunal has completed its work, which is now nearing an end, so far as those services already listed for purchase are concerned."

In connection with the social services rendered by the railways of New Zealand, apart from those for which it

is recouped through its revenue account, the Minister said it must be recognised that as far as practicable the expenditure that is economically ixade in the provision of railway transport facilities must be recovered in (he charges made to the users.

COMPARISON OF FREIGHT RATES. I" Lowest Rate (Minerals). j i' Queensland. New Zealand C Rate New rate c Miles. per ton. per ton. s. d. s. d. ? 100 13 2 13 5 200 22 10 19 0 300 26 5 22 6 400 ..^ 33 5 25 5 ' 500 38 8 28 3 Highest Kate (General Merchandise). Queensland. New Zealand. Rate New rate Miles. per ton. per ton. s. d. s. d. 100 107 3 76 0 200 189 11 - 106 10 300 249 9 132 6 400 7....... 249 9 158 2 500 249 9 183 10 "Made on the basis of fares and freights alone, the comparison proves beyond question the advantages still to be enjoyed by the users of railways in New Zealand. This, however, is by no means the whole of the story," said the Minister, "important as it is to every user of railway transport. The quality of and the recent improvements in the Department's services and facilities provided at such favourable rates is another aspect with which New Zealanders should well be pleased, and this comparison is frequently made by those from overseas who understand the railway problem and who testify enthusiastically regarding the benefits enjoyed by the users of the railways in this country." EFFECT OF INCREASES. Commenting upon the effect the increase was likely to have on the business of the Department in so far as freight generally and passenger traffic were concerned, Mr. Sullivan stated that a careful survey of the increase as applied to typical cases showed that it was not anticipated that any material loss of business would ensue. Speaking this year after several months' experience following on the increases made by the British Railways, Sir William Wood, on behalf of the London Midland . Railway, stated that after a careful examination of the position the companies considered that there had been no important loss of traffic which could be ascribed to the increase in charges and he was supported by Sir Walter Monckton, K.C., who spoke on behalf of all the railway companies. "As the tabulation clearly shows, continued the Minister, "the fares and freights in New Zealand, after adding the 10 per cent, increase, compare more than favourably with those in force on the Australian railways and if the policy of the 'user paying' is to be continued in a reasonable way no logical objection can be raised to the alterations that the Government has decided upon in order to maintain a satisfactory financial balance between the Department's income and expenditure accounts. "Taking a few typical illustrations, the 10 per cent, addition to passenger fares will increase the ChristchurchLvttelton 12-trip workers' weekly ticket by 4d, from 3s 6d to 3s 10d, or onethird of a penny per trip; similarly the Lower Hutfr-Wellington 12-trip ticket will increase by sd, from 3s 9d to 4s 2d or .41d per trip. The ordinary second single fare from Christchurch to Timar.u will be increased by from 8s lOd to 9s 9d, and from Christchurch to Dunedin by 2s, from 20s 2d, to 22s 2d. MODIFIED FREIGHT CHARGES. "Coming now to freight rates," the

SINGLE PASSENGER FARES. ■ ■ •, New Zealand. Queensland. Victoria. Present - New Fare. Pare. : ' Class Class Class Class Miles. 1st 2nd 1st 2nd 1st 2nd 1st 2nd 20 3/- 1/11 3/4 2/1 :,5/- 3/o 4/5 2/11 30 4/1 2/10 4/6 3/1 \ii 7/5 5/- 6/3 4/1 40 5/4 3/8 5/10 4/- 9/3 6/4 8/1 5/4 is it w j# m? \ . $ 200 25/9 17/7 . 28/4 19/4 39/- 25/4 &/» Wo 300 38/6 2&>3 42/4 28/11 55/11 35/10 5d/o 38/11 400 51/2 34/11 58/3 38/5 71/9 44/4 67/2 44/10 N.S.W. Class 1st 2nd 3/10 2/8 5/10 .4/7/7 5/3 9/5 6/6 11/4 7/10 13/2 9/1 15/3 10/6 17/- 11/9 19/1 13/2 35/9 24/8 51/7 35/7 66/8 46/ 7 Tasmania. Class 1st 2nd 4/- 3/5/9 4/3 7/9 5/9 9/- 6/9 11/3 8/6 12/9 9/6 15/- 11/3 16/3 12/3 18/3 13/9 36/9 27/6 54/9 41/-