Railway Fares and Freights

Evening Star, Issue 23129, 1 December 1938, Page 4

Railway Fares and Freights

All Round Increase New Scale Operates From December 11 Users Still Have Advantage Over Australia The Hon. D. G. Sullivan, Minister of Railways, in a statement to the Press to-day, announced an all-round increase of ten 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, “found their costs for stores and materials increasing to such an extent and their wages bill rising so rapidly that they were compelled to apply to the Railway Rates Tribunal for authority to increase their tariff charges.”

PINCH OF RISING COSTS WHAT OTHER COUNTRIES HAVE DONE “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 5} per cent., and this became operative from the first of the present month. 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.” • - , the alternatives. “ It w as with a knowledge of these

facts 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 increase 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, said the Minister, “ 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 I have mentioned.” “ The desirability of following the latter course will be clearer and better appreciated when a comparison ia made between the railway charges in New Zealand and those in other countries, particularly 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

FREIGHT RATES. —Lowest Tariff Eafe (Minerals).— Queensland. New Zealand (New Rate), Miles. Rate per ton. Rate per ton. 100 13/2 5 US ;;; ;;; »“ p ? im 83/5 20/5 600 ...... ' 38/8 28 /3 Highest Tariff Rate (General Merchandise).— - ° Queensland. New Zealand (New Rate). Miles Rate per ton. Rate per ton. inn* 107/3 76/oSR 189/11 106/10 4™ 249/9 138/2 500 ." 249/9 ' 183/10

NEW ZEALAND STILL CHEAPEST. “ 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 tho Minister, “ important as it is to every user ot railway transport, Tho quality or ana the recent improvements in the department’s services and facilities provided at such favourable races is another aspect with which Now 55eul«niders 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. Commenting upon tho effect the increase was likely to have on the business of the department in s 6 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 alter a careful examination of the position the companies considered that there had been no important loss ot traffic which could be ascribed to the increase in charges, and he was supported oy 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.” TYPICAL ILLUSTRATIONS. “ Taking a few typical illustrations, the 10 per cent, addition to passenger fares will increase tho Christchurch-

Lyttelton 12-trip worker’s weekly ticket by 4cl, from 3s 6d to 3s 10d, or onethird of a penny per trip; similarly the Lower Hutt-Wcllington 12-trip ticket will increase by sd, trora 3s 9d to 4s 2d, or .41d per trip. “ The ordinary second single fare from Christchurch to Timaru will be increased by lid, from 8s lOd to 9s 9d, and from Christchurch to Dunedin by 2s, from 20$ 2d to 22s 2d,” said Mr Sullivan. “ Coming now to freight rates,” the 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 7sd. Brown coal, with an averege haul of 126 miles, will be increased for that distance by less than Is 4d per ton. The Government has come to tho conclusion that over the whole field of our passenger and goods operations the alterations decided upon, spread, as they arc, equally over all classes of traffic, whilst materially improving the net revenue position of the department, will not prejudicially affect the trend in trade and industry generally.” SIMPLIFICATION OF TARIFF. “ 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 rate (class C). This adjustment will not, however, be introduced until the commencement of the new financial year on April 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 ratiug would be introduced as soon as the purchasing tribunal has completed its work, which is now nearing an end, so far as those services alreadv listed for purchase are concerned.” . . . In connection with the social services rendered by the railways of Is<?w Zealand, apart from those for which it is recouped through its revenue account, the Minister said it must bo recognised that as far as practicable the expenditure that is economically made in the provision of railway transport facilities must be recovered in the charges made to the users.

PASSENGER SINGLE FARES. New Zealand. Queensland. Victoria. N.S.W. Tasmania. Present Fare. New Fare, rtloee ClnSR Class Class Class Class Miles. 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st 2nd 1st zna 20 30 40 50 60 70 80 00 100 200 300 400 oi 1/11 3/4 2/1 5/- 3/5 4/5 2/11 3/10 4 /i 210 4/6 3/1 7)5 57. 6)3 4/1 5/10 5/4 3/8 5/10 4/- 9/3 6/4 8/1 5/4 7/7 6/7 4/6 7/3 4/1111/4 7/1110/3 6/10 9/5 7/11 5/5 9 - 13 9 9 6 12/1 8/1 11/4 9/2 6/3 10/1 6/H 15/10 10/7 13/11 9/3 13/2 10 6 72 11 7 7/11 16 11 11/7 16/1 10/9 15/3 11/8 if- 12/10 8/10 19/- 12/8 17/11 12 - 17/13/- 8/10 14/4 9/9 21/1 13/9 19/10 13/3 19/1 25/9 17/7 28/4 19/4 39/- 25/4 39/8 26/5 3o/9 38/6 26/3 42/4 28/11 55/11 35/10 55/5 36/11 51/7 S/2 34/11 56/3 38/5 71/9 44/4 67/2 '44/10 6G/8 2/8 4/4/- 5/9 6/3 7/9 6/6 9/7/10 H/3 9/1 12/9 10/6 15/11/9 16/3 13/2 18/3 24/8 36/9 35/7 54/9 ■46/3/- : 4/3 5/9 6/9 8/6 9/6 11/3 12/3 13/9 27/6 41/-