COMMERCIALISED RAILWAYS.

Hawera Star, Volume XLVI, 7 August 1926, Page 6

COMMERCIALISED RAILWAYS.

CO-OPERATION WITH PUBLIC

CREATION OF DISTRICT AD-

VISORY BOARDS,

The Minister for. Railways, the Rt. Hon. J. G. Coates, in his annual Railway Statement, makes a very comprehensive exposition of the methods now being employed' by the Railway Department to compete with private enterprise along commercial lines. The statement says:

A. cardinal feature of the policy in the development of the railway business has been the promotion of a closer relationship between the department and the public; in other words, the creation of a good-will in favour of the department. In the case of a monopoly business, of course, good-will figures very little, but as competition grows this factor becomes increasingly important, and to-day. the stage lias been reached through the advent of competitive forms of transport that necessitates those responsible for the administration of the Railway Department fostering public good-will to the maximum possible extent. With the rapid improvement in motors fas a mechanical form of transit, together with the steady improvement in our roads, the sphere of motor competition will become more and more extended, and, as this occurs, the matter of goodwill will assume proportionately greater importance. In the days when the railways had a. virtual monopoly oi the transport business, the necessity for fostering public good-will did not press itself on railway administrators, and —perhaps unconsciously—the development of this aspect of the department’s activities did not receive the attention at their hands that the present altered circumstances imperatively demand. The problem of improving the publio relations may be said to present itself in two. aspects —(1) improved service: (2) co-operation by the public. As to the first, a close survey of the situation discloses the necessity for substantial improvements in the facilities at the department’s disposal to enable it to give better service. This has necessitated our embarking upon an extensive programme of improvements, involving* the expenditure of considerable sums of money, but in every case the proposals have been based on a rigid adherence to the principles of economy, and efficiency. Without exception, we have required to be demonstrated before any proposal was adopted that it was amply justified on one or both of these grounds, and we are already beginning to feel the benefit of the steps that we have taken in this direction.

Unquestionably until the increased spending-power of the people there, has been a greater demand for service. As to passenger traffic, the maximum degree of comfort and speed that can be obtained consistently with safety is demanded, while similarly with goods traffic the demand is for promptness in transit. This lias required extensive revision of time-tables, providing for faster train services. The changes that have been achieved in this direction during the past year have, I believe, met with the general approval of our customers, and !ha.vo brought to the department a large measure of good-will. A further aspect of the problem of better facilities is to be found in the greater measure of contentment among the staff, which lias its direct reflection in better personal service given by the staff to the public. It is a. fact that a staff working in comfortable land congenial surroundings, with efficient machines, will work with an enthusiasm and a will for service to a much more pronounced degree than under other conditions. The attitude of the staff generally towards the public has been a considerable factor in promoting the success of the past year’s operations.

Dealing with the problem of public relations under the second aspect — and one which from many points of view is the more important—namely, that of securing the co-operation of the public, very considerable progress lias been made. Realising at the outset the necessity for setting up a closer personal relationship between the department and its customers, a. commercial branch was established, which has now become a very important branch of the department. The work of this branch is twofold in its nature. It requires in the first place that the commercial officers shall go out among the public, establish personal contact with with the department’s customers or potential customers, and .advocate the cause of the railway, pointing out that the department has both the will and the means to give good serive, that the service, is economical as well a.s efficient, and, more, particularly, that the constant care of the department is the client’s interest. The other aspect is that, within the department iself, it must plead the public point of view. Necessarily its ideas will generally be in advance of the ideas of the transportation side, and it will he constantly urging the public demand for extended service. The commercial branch must be extraneous to, and independent of the transport side, though working constantly in the closest co-operation therewith. The commercial branch places itself in the position to value services, and so also provides the foundation for confident and sound decisions in the rating department. More particularly, however, does it constantly concern itself with maintaining a point of contact he-, tween the railway staff and the public, ever directing the viewpoint of both so as to ensure an entire harmony between them in all the department’s transactions. There has been no more strongly operating factor in bringing alb out the closer rapprochement between the department and its customers, than the operations of the commercial branch, and there is istill much room for good Work in this direction, resulting not only in jirosperity to the department, but also satisfaction to its customers.

Good work has been performed during the past twelve months, and much of the business previously lost by competition has been recovered, and a good deal of new business has been secured. In this respect it has been ascertained that revenue to the extent of £133,000 has been directly due to the activities of the commercial branch, together with the co-operation of the station staffs.

A further channel through which it is considered that public co-operation might be secured in an active way is by the establishment of district advisory boards. These boards will be representative of the various interests using the! railways, as incorporated in chambers of commerce, farmers’ unions, etc., and will operate within defined districts. At the meetings of these, boards discussions will take place on the various problems that will he remitted to them affecting; public relations with the department, and there can be no doubt that the clearer understanding that will arise from these dis-

missions, and from the operations of j these boards generally, will lead to a closer co-operation between the public and the railways that will he for the material benefit of both. These boards will, as their name implies, be advisory in their nature, as must necessarily he the case when,' as in State-owned railways, the final responsibility to Parliament must rest with the Minister. This, however, need not in any way restrict the usefulness- of the boards, for there is undoubtedly a field for their operation which will be ample to justify their constitution. They will act as a means for bringing together the views of the Railway Department and its customers, and will be a step towards ensuring that tho department s decisions shall before being final 13 settled have at their foundation a proper knowledge of the point of view of the customers. The boards will work out- the solution of the various problems in a way that will be possible under no other method, hut, aoove all, there will he the fact that the decisions when come to will have behind! them the weight of opinion of the representatives of the department’s customers. Bv that method we axe not only better assured of the correctness of the decisions arrived at, but we are also assured in advance of the help of the committees, and the bodies they. represent in bringing about the desired results. The operations of these boards will be founded on a basis of fair and open dealing, frank discussion, and constructive criticism, all combining together xin a healthy cooperation. As this report is being written the constitution of the boards is being settled, and it is hoped that before next Year’s statement is presented we will be in a position to report that they have developed a full measure of activity.