RAILWAY FINANCE.

Hawera Star, Volume XLVIII, 16 October 1924, Page 10

RAILWAY FINANCE.

TRANSFER OF CONTROL. ENGLISH EXPERTS’ VIEW. The approval already given to the proposal of the .Minister of Railways tor the transfer of the control of railway finance is heightened by the concurrence m the project by the English railway experts who have arrived in New Zealand to conduct an investigation into the railways of New Zealand (telegraphed the Taranaki Herald’s correspondent. yesterday). Although the conditions of administration of the railways are somewhat different in Australia and New Zealand, yet in the matter of financial control similar systems have been in operation. It is interesting,* therefore, to note that the Railways Commission, Sir Sain Fhy and Sir Vincent Raven, concur in the view already expressed by the Minister of a J' S in his annual statement tabled in the House of Representatives, which in thi s connection has received general support throughout the country. The report of the commission on the New South Wales railways, which has now come, to hand, is a lengthy document, but those clauses of it which refer to finance have more than passing interest.. The actual text is as follows: “That the railway finance be taken out of the control of the Treasury and. the commissioners given, full control of their own funds, and that the commis. sioners he responsible for the renewal of loans on railway and the tramway account and the raising of future capi-: tal. That reserve funds he to provide, for the obsolescence andwasting assets of the permanent way. and rolling stock. That the railways commissioners he recouped by .the Treasury for losses incurred on development lines during the period of ten years after they have been opened for traffic. That the railways and tramways he so worked that the gross receipts shall not he more than sufficient to cover working expenses, reserves, and interest on capital, including sinking funds. In the event of aiiy surplus this should be devoted to the reduction’ of rates and fares, and in. the case of a .deficit rates and fares shall be increased. That a yearly balance-sheet showing capital, revenue and net revenue followed bv departmental accounts in the usual company form and a forecast of capital commitments for the following year be rendered to the Legislative Assemblv.” The commissioner’s recommendation in regard to the payment of the administration in New South Wales, where the population is not much move than in New Zealand, is interesting. “A chief Railway Commissioner at £SOOO per annum, a financial assistant commissioner at £4OOO, a power assistant commissioner at £4OOO. and a trnmwav assistant commissioner at £3000.”