The Railways Bill

Lake Wakatip Mail, Issue 3996, 21 April 1931, Page 2

The Railways Bill

WELLINGTON. April 13. Under the powers proposed' in the Government Railways Amendment Bill, introduced in the House to-night, the railways will be controlled by a hoard of three persons, one being the chairman (who will devote full time to his duties and receive a salary of £1,500), two others receiving £750. Members of Parliament, Government servants, or persons in competitive transport concerns are expressly excluded from holding the position. The chairman will hold office for four years, with subsequent reappointment for three years. Provision is made tor the retirement of one other director in two years, the third in three years, with subsequent reappointment for three years. * FUNCTIONS OF BOARD.

The functions of the board, according to the Bill, are: “To carry on, control, manage, and maintain the Government Railways to the end that the railways, while being maintained as a public service in the interests of the people of New Zealand and as an essential factor in the development of trade and industry, shall be so carried on. controlled, managed, and maintained on the most economical basis, having regard to economic and financial conditions from time to time affecting the public revenues and trade and industry in New Zealand, with a view to obtaining the maximum of efficiency and maintaining a , proper standard of safety and a reasonable standard of comfort and convenience for persons using the railways and any other services carried on in connection therewith.” The board is directed to consult tlie Minister of Finance to obtain information respecting the state of the public revenues which will enable it to carry out its functions in the best interests of New Zealand. Except for certain formal matters all the powers, duties, and functions of the Minister, the general manager, and the permanent head of the department are transferred to the hoard, which will have the management and control of all property vested in the Crown for railway purposes. The hoards’ powers to deal in land are. except in minor cases, subject to the approval of the Governor in Council. NEW RAILWAYS. Where, after the passing of the Act. any special Act authorising the construction of any new railway is passed no work shall he undertaken until a report by the board respecting tbe railway is received by Parliament and a resolution of Gotli Houses approves of sucb work. Where construction has been already authorised by legislation, but lias been suspended, work is not to be resumed until tbe board lias reported to Parliament and resumption is approved by resolution of both Houses, improvements to existing railways shall not be constructed except on tbe recommendation of tbe board. Power is given the Railway Board to close lines which it is satisfied cannot return sufficient to pay working expenses or the operation of which is not in the public interest. REDUCTION OF CAPITAL. The board will submit an annual statement of accounts and a balancesheet to the Minister of Finance, together with other statements showing fully the financial position, which will be laid before Parliament. The necessity for monthly statements regarding tbe working railways is repealed. The Bill directs that the capital of the railways shall be the sum certified to have been expended at March 31, 1931, reduced by the sum of £10,400,000 on account of accrued depreciation and losses of assets not otherwise previously provided for. The board is empowered to make all appointments to the department, excepting that of General Manager, and it will control the classification conditions of the service find salaries, subject to the approval of the Governor-iu-Conncil. This is subject to the provision that any salary exceeding £7OO shall be subject to appropriation by Parliament. The present General Manager of Railways is confirmed in his appointment. The powers of the Minister of Railways are defined in a special clause. He is to direct inquiries into the cause of accidents, and the Governor-General, on his recommendation, may make regulations to prevent the recurrence of accidents. If such directions are not complied with, the members of the board shall be personally liable to a fine not exceeding £2OO for every day of default

Examination of tlio details of the clauses relating to the writing down of railway capital shows that the former sum of £8,100.000, written down in 1929, is included in the proposed reduction of £10,400,000. making the actual further net reduction £2,300,(>00. It is also provided that the net profits, as shown in the profit and loss account of railways, shall he paid into the Consolidated Fund. The Prime Minister’s outline of the principles of the Bill was punctuated by interjections which reflected the intense interest which the introduction of the measure aroused. Replying to Mr Coates, Mr Forhes said the Bill was a simple one, dealing almost entirely with the setting up of a board of three directors to control the railways. There would be a chairman at £1,500 a year, who would devote his whole time to the business or the railways, and two part-time directors ftt £7oo a year each. Mr Black; What happens to the general manager? Mr Forbes: He will carry on as he has been doing up to the present. Mr Parrv: He will carry the bag. Mr Forbes: The general manager will be the same. He has an agree-

A Directorate of Three Chairman at £ISOO a Year General Manager Retains Post at Present Salary

meat with the Government regarding the length of his term, and it is proposed to carry out the terms of that agreement. Mr Martin; At a further cost of £B,OOO a year. Mr Forbes: Yes, as far as the directorate is concerned. Mr Parry; To tell a man who is getting £3,500 a year what to do ? Mr Forbes said that, compared with what was paid in other countries, the remuneration to the directorate was reasonable Mr Barnard: Will the directorate have anything to do with the construction of new lines of railway? Mr Forbes: There is a clause in the Bill providing that new lines are not to be constructed until a report from the directorate is presented to Parliament.

Mr Martin : What about works at present under construction!-' Mr Forbes: Tbe clause deals with railways that have been suspended up to bhe present. “There are no traps in the Bill?” asked Mr Coates with a smile. Mr Forbes: There are no traps in any legislation before this House. (Laughter. ) A fusillade of questions was fired at the Prime Minister by Mr Holland (Leader of the Labour Party). “ Will tbe Prime Minister,” ho asked, “ give us some idea of the personnel of the board?” Mr Forbes: 1 don’t know it.

Mr Holland; 1 take it tlie House will be permitted to know who the members of the directorate are before it passes tlie Bill. Further, J would like some information regarding tbe position that will be created when the directorate is set up. There are to be two part-time directors —business men who are not in the Public Service. Mr Forbes: The same as the directors of tlie Bank of New Zealand. Mr Holland: I know, but will this change mean handing over control of the railways to private enterprise, and what is the general manager’s view of the position? Are bis views to be subordinated to those of the chairman at £1,500 a year? Mr Veilcii: He is subordinated to the Minister, who is drawing less than that now. Mr Holland: And is the Minister of Railways still to be Minister? Mr Barnard; He won’t be needed now.

Mr Holland contended that if there were a Minister depoliticalisation would not have been achieved. The House would still have to pass the railway estimates and discuss the railway statement. He wanted to know, further, to what extent the directorate would be reponsible to the Minister of Railways. Whether it would be responsible to tlio Prime Minister or whether there would lie any responsibility at all? Had tbe general manager agreed to the change, and would it mean that the Minister of Bailways would tender his resignation and then come back at a higher salary? (Laughter.) In reply, Mr Forbes advised Mr Holland to await tbe circulation of the Bill. Any information that it did not contain on tbe points raised he would 1)2 pleased to supply later. He added that tlie position of the Minister was defined, and was similar to that of the Minister of Railways in Australian States. The members to be appointed to the directorate Vvonld lie the best men it was possible to obtain for the position. / Mr Holland : Who will bo the judge of that? Mr Forbes: If tbe bon. member lias any names in mind and submits them the Government will give them every consideration. (Laughter.)

The Bill was read a first time. Mr Forbes announcing that tbe second reading would be taken on Tuesday.