RAILWAY ACCOUNTS

Hawera Star, Volume L, 9 January 1931, Page 8

RAILWAY ACCOUNTS

ADJUSTMENT URGED

COMM ISSIO N’ S R ECOMM.EN DA - TIO.V.

(By Associated Chambers of Commerce)

The commission which recently invosli•Tiled the aff'air-S of the Dominion -s Rail way Department lias placed on record some scathing comments concerning the multiplication of new lines—minding many branch lines—which <ve little prospect of becoming re,,l,crative during the life of the material employed- in their coirstiaction. J was stated in evidence to the commission by a. competent authority that owmz to the increased cost ol material and labour no new lines laid down during Eh© just fifteen years’ with the exception of short spur-colliery lines, had anv likelihood of paying. 'I bis means that as the lines now under construction are completed the 1-oss shown m the accounts of the department wall become heavier and heavier. In other words, the cost of operating the hues will be added in a large measure to the cost of constructing them, and the lot qf the taxpayer will be even harder than it- is at the; present time. Then while; Parliament is authorising the construction of new lines here and there, further expenditure is being lavished upon roads running: parallel to the rails which in due course; will became a- formidable opponent- to them The branch lines throughout the country provide striking examples of this development. If Parliament in opposition to ok pert- advice, considers that certain development lines should he coil-, strueted then it should set aside a sufficient sum 1 from the--Consolidated Fund; 1 to co-ve-r the cost of the work. Thdj public then would have, am opportunity to .see- li-o-w matters stood .and the "railway management not be responsible* for the result;

If is estimated that when the linos’ at [, resent under construction by the; Public Works Department are completed and handed over to the Railway Department the capital account of this department wilj be raised, approximately by £13,(530,000, tints bringing the total up to no less than £72,831,545, or just- upon the amount, -of the whole public debt of the Dominion twenty years ago. The annual interest, bill on all lines, even at so low a rate as 45 per cent, will then amount to no less than £3,095,341. even if not a shilling is otherwise added to the construction debt meanwhile.

The commission, among other sagacious- observations emphasises the- importance of the Railway Department keeping proper accounts. “In the opinion of your committee, ■’ it say-si modestly, but emphatically, “proper steps must be taken to provide lor the loss of capital which lias resulted from the abandonment, obsolescence, and wastage; of" various assets, and this can; be done only by the cancellation of. capital covering the full amount- represented by assets coming under this’ description. If the railways were; privately owned the loss of capital’would undoubtedly be written off, as the director-, could not present, and the shareholders would not- agree, to a balance sheet .showing assets much in excess of their value.” The obvious; need of the Dominion’s- railways is a management freed entirely from party influence.