RAILWAY REVENUE

Manawatu Standard, Volume LIX, Issue 99, 27 March 1939, Page 9

RAILWAY REVENUE

MINISTER DEFENDS POLICY.

REPLY TO CRITICISM

Per Press Association. AUCKLAND, Alarcli 26. “Nobody should be more aware than Air Hamilton of the futility of endeavouring to fool the people of New Zealand for all or even some of the time. He ami the party lie leads received a salutary lesson in this regard at the elections held in Novoinlier, 1936, and that lesson was repeated With emphasis at the recent general elections toward the end of last year,” said the .Minister of Railways (lion. I). G. Sullivan), in replying to the statement made at Rotorua by the Leader of the Opposition to the effect that the railways were not paying working expenses. “Such a statement can only be attributed to unthinkable ignorance such as one would scarcely expect from a mail occupying Air Hamilton’s position. or it may be merely another phase of the old game of attempting to fool the people,” the Minister said. “The position is that the official figures quoted by mo, and to which Mr Hamilton referred, are in no way contradicted by him, hut ho endeavours to bolster up his contention that the railways arc not paying working expenses by comparing a full year’s working on the one hand with only portion of a year on the other hand, omitting, of course, three or four mouths of the year during which the department’s traffic is the busiest and the larger proportion of its net revenue is accumulated. EXPENSES PERCENTAGE. “For the information of the general public and to indicate the effect of the months omitted from Afr Hamilton’s comparison,” said Air Sullivan, “I would point out that the percentage of working expenses to revenue from April 1, 1938, to January 7, 1939, was 99.21, and not 103.5, as mentioned by Air Hamilton, while the latest figures available to me from April J, 1938, to Alarcli 4, 1939, show the percentage of working expenses as 94.70 of revenue. I confidently anticipate that the accounts for the year ended Alarcli 31 will show working expenses as about 92.5 per cent, of gross revenue, giving a net revenue of approximately £700,000. “Air Hamilton states that for tbo year prior to the increase of fares and freights on December 11 last it cost tbo Railways Department £RHi to earn every £IOO. Official figures show that for the year prior to December 11, 1938, working expenses were 95.5-1 per cent, of revenue. Air Hamilton quotes the figures lor 1935 and 1936 for com- ■ parison with those of the current year, liut he omits to state that by means of wages and salary cuts during the two years inferred to ail amount exceeding £833.000 was filched from the employees of the department to swell the j net revenue and to make an improved showing in the returns. MAINTENANCE COSTS. “On previous occasions, too, I have pointed out that my Government lias had to make additional provision lor maintenance to an amount of many hundreds of thousands of pounds because of the cuts imposed ill that respect by Air Hamilton’s Government “Even when dealing with minor matters in the latter portion of his speech Air Hamilton was apparently unable tu confine himself to facts. When lie referred to increases of up to 50 per cent, in minor charges, which, ’’ said Air Sullivan, “have not been made, and also when he states an increase has been made in the charge lor sandwiches at railway refreshment rooms, which is also contrary to fact, he is possibly blaming the present Government for an inI crease in the price of sandwiches which was imposed under the previous Government and subsequently removed. “The Government,” concluded Air Sullivan, “is not looking lor a scapegoat in the matter of its administration generally, nor in so far as its railway policy is concerned. It is quite prepared to accept the full responsibility for its actions without having recourse to the establishment of an independent board behind which previous Governments have taken shelter. “All the Government desires is to place the facts tuny before the people and ask its critics, especially those holding highly responsible political positions, to adhere closely to the facts when making public statements.”