N.Z. RAILWAY RATES

Grey River Argus, 2 December 1938, Page 7

N.Z. RAILWAY RATES

TEN PER CENT. RISE Fares and Freights [Special to “Argus.”] WELLINGTON, December 1. 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, m railway fares and freights (including the charges for conveyance of goods by road.) The increases 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 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.” “A similar position existed in France,” continued the Minister, “where a twenty-four per cent, increase has been instituted. Quite recently the Queensland Government decided to increase the railway tariff by five and a-half 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.”

“It was 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 is 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.”

New Zealand. Present New Fare Fare Class Clafes (Tiles Ist. 2nd. Ist. 2nd. 20 ... 3/- 1/11 3/4 2/1 30 ... 4/1 2/10 -4/6 3/1 40 5/4 3/8 5/10 4/50 ... 6/7 4/6 7/3 4/11 60 ... 7/11 5/5 8/9 6/70 ... 9/2 6/3 10/1 6/11 80 ... 10/6 7/2 11/7 7/11 90 ... 11/8 8/- 12/ICT 8/10

Miles Queensland N.Z. New rate. 100 107/3 76/200 189/11 • 106/10 300 249/9 132/6 400 249/9 158/2 500 249/9 183/10 “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 Zealand-, ers should well be pleased and this comparison is frequently made by I those from overseas who understand the railway problem and who testify esthusiastically regarding the benefits enjoyed by the users of the railways in this country.” 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.

“As the tabulation clearly shows,” continued the Minister, “the fares and freights in New Zealand, after adding the ten 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 ten per cent, addition to passenger fares will increase, the ChristchurchLyttelton 12-trip workers’ weekly ticket by 4d. from 3s 6d to 3s lOd or onethird of a penny per trip; similarly the Lower Hutt-Wellington 12-trip ticket will increase by 5d from 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 20s 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 7Jd. Brown coal with an average haul ofj 126 miles will be increased for that dis-' tance by less than Is 4d per ton. The Government has come to the conclu-' sion 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 affect the trend in trade and industry generally.” “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'high-1 est 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 the Ist April, 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 these 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.”

100 ... 13/- 8/10 14/4 9/9 200 ... 25/9 17/7 28/4 19/4 300 . .. 38/6 26/3 42/4 28/11 400 ... 51/2 34/11 Queensland. 56/3 38/ j Class Wiles 1st. 2nd. 20 5/3/5 30 7/5 5/-' 40 9/3 6/4 50 11/4 7/11 60 13/9 9/6 70 15/10 10/7 80 i . . . 16/11 11/7 90 19/12/8 100 21/1 13/9 200 39/25/4 300 55/11 35/10 400 Victoria. 71/9 44/4 Class Miles 1st. 2nd . 20 4/5 2/11 30 6/3 4/1 40 8/1 5/4 50 10/3 6/10 60 12/1 8/1 70 13/11 973 80 16/1 10/9 90 17/11 12/100 19/10 13/3 200 39/8 36/5 300 i . . 55/5 36/11 400 67/2 New South Wales. 44/10 Miles 1st. 2nd . 20 3/10 2/8 30 5/10 4/40 7/7 5/3 50 9/5 6/6 6011/4 7/10 70 13/2 9/1 80 15/3 10/6 90 17/11/9 100 19/1 13/2 200 35/9 24/8 .300 51/7 35/7 400 Tasmania. 66/8 46/Miles 1st. 2nd . 20 3/30 5/9 4/3 40 7/9 5/9 50 9/6/9 60 11/3 8/6 70 12/9 9/6 80 15/11/3 90 16/312/3 100 18/3 13/9 200 36/9 27/6 300 54/9 41/400 — — COMPARISON OF FREIGHT RATES The Lowest Tariff Rate (Minerals). Miles Queensland N.Z. New rate. 100 - 13/2 13/5 200 22/10 19/300 26/5 22/6 '400 33/5 25/5 500 38/8 -28/3