FORCING BUSINESS BACK TO RAILWAYS.

Horowhenua Chronicle, 8 January 1931, Page 7

FORCING BUSINESS BACK TO RAILWAYS.

MR RANSOM INDICATES DRASTIC MEASURES. GISBORNE DECISION TO STAND. WELLINGTON, Last Night. In expressing the opinion that the time was over :inr- for a complete review of the transport system of the Dominion, especially in relation to the heavy losses on the railways caused through competition from motor vehicles, Hon. E. A. Ransom, repdying to the Gisborne railway deputation,, said that he- wished to make it clear that the four lines upon which work had been stopped had not been abandoned, as seemed to bo thought in many quarters. The work had merely been suspended in order that the Government might nave breathing space in which to go into the whole question. 0 \ It was imperative that the heavy expenditure on these lines should be stepped. In the meantime, the Government intended to apply itself to a further adjustment of the national finances, and it was hoped in the course of a few days it would be possible to make an important announcement con-

cerning future development work. Government Must Call a Halt. Mr. Ransom said the annual loss on the working railways was already £1,300,000, This wouid bo increased as the lines under construction were brought into operation. It was important to note that no less than £32,000,000 a year was bcirig spent on motor transport throughout the country. This huge expenditure, added to that upon railways, had justified the Government in calling a halt in construction in order that it might go into the whole question of road and rail transport and define a definite policy as far as meeting the position created by competition between the two services was concerned. Both the roads and the railways belonged to the people, and the county councils were finding it increasingly difficult to maintain the roads, largely throng’ll the wear upon them by heavy-laden vehicles. It was therefore right that something should be done to overcome this trouble, in view of the fact that much of the merchandise should be carried by the railways. If the facilities provided by the railways were good, there was no reason why they should not take the traffic now being diverted to the roads. There was no intention whatever of

scrapping the railways, but Cabinet had decided to take these questions into very serious consideration. It had been suggested that the Government should have closed down the non-pro-ductive linos first, but this was exactly what had been done. It had been suggested that there was something in the mind of the Government which had not been made clear to others, and this might be perfectly true. Work For Men Put Off. It was the Government’s intention to find work for the men who had been put oft’ construction work and to put them on to .some more productive form of employment, the project at the moment being the greater development of Crown and other lands. The policy to be followed in this connection had not yet been settled, but it was certain that the lines to be followed would be acceptable to the country generally. It was hoped to make an announcement upon a work of considerable magnitude at an early date.

'The closing of the four lines was clue purely to financial considerations. Political issues did not enter into the question. As nothing definite had been done by the select committee on railway construction last session, the Government had decided that it would have to accept the responsibility and act accordingly. Forcing Traffic on to Railways. It was noticeable that in a district where a railway was required there was much enthusiasm for it and great confidence in its future, but as soon as the railway was opened the cntnusiasm seemed to die away and traffic was diverted to the roads. This had occurred in several instances. It had been impossible to educate the people generally up to the fact that the rail ways were their property and that any losses upon them would have to be borne bv the taxpayer. Until that spirit of mutual support had been im-

bued in the people it would be impossible to sec any hope in the future of the railways. If it could not be imbued, then the Government would have to take steps to enforce restrictions that would force the traffic on to the railways. That would be a serious question. Works would not be started again until it could be shown that they would be justified. Cabinet’s decision had not been made hastily. On the contrary, it was overdue. Some delay had been caused through the pressure of unemployment and the announcement could not be made until plans for the absorption of the men had been well advanced. Although some of the loss might be borne by the taxpayer, it was necessary to safeguard the railway revenue in order that the taxpayer would not be overburdened. By increasing production it would be possible to make the railways a paying proposition in time. The whole question was wrapped up in that of transport generally. “This is only one of the unpleasant things that Cabinet has done and will yet have to do,” Mr. Ransom concluded. “There are problems of such magnitude before us that very drastic steps will have to be taken to meet the interests of the whole of the people ot the Domini on.’' The Gisborne Line Mr. Ransom said he appreciated the feelings of the Gisborne people. Borne question had arisen concerning the closing of the line, but the Government 's announcement in the press was meant to be a definite statement that four lines would be closed. That was not, however, an intimation to the various staffs, which would not necessarily be notified that they were to receive noticed. At the same time, that accounted for the reply he had sent to Mr. Lysnar concerning the dismissals—that all the men would be given a week's notice. Members of the deputation stated that although the men working on the co-operative system were to receive a week's notice, those working by the day would not. Mr. Ransom said he had instructed that all wore to be treated alike, and he would look into the position. It had been stated that the men were living on fish during the holidays, but it was hard to accept this statement

and it made one wonder how much reliance could bo placed on other statements made by the deputation. The men on the works had been earning an average of 17/- a day, and the Government could not be blamed if they took no care for the future when they were earning good money. The suggestion had been made that the line could be made to pay 10 per cent.., but if it could be proved that it would pay even less than that the Government would be warranted in going ahead with the work. There was no reason to believe that the railway would eliminate motor traffic, as this had not been the case in other parts of the country. He sympathised deeply with those who were out of work and those who would be affected by the cessation of construction. However, if the Government had waited until no one would be hurt by taking action, it would then be too late to prevent further waste. It was fully recognised that the line had been advocated by Ministers, but times had changed greatly and they had been forced to change their opinions. The Government's decision would have to stand—at least in the meantime. A Correction. Reference to the statement that the men employed by the day on the Wai-kokopu-Gisborne line had been dismissed without a week's notice was made later by Mr Ransom who said that from information he had received it appeared that his instructions had been misinterpreted and that the day workers had actually been put off without notice. However, definite instructions had been issued that these men were to receive the same notice as those working under the co-operative system. This would mean that all workers would be placed on the same basis and all would receive a week's notice. Mr Ransom also said that it was not the intention of the Government to remove the heavy plant from the < site. Mention had been made of the fact that the work had not. been abandoned but only suspended, and if it were decided to continue operations in future the plant would be ready on the site.