Must Mot Be Penny Wise And Pound Foolish

Northern Advocate, 10 May 1939, Page 6

Must Mot Be Penny Wise And Pound Foolish

-MR. C. B. MICHIE

“The suggestion that; the tailway and motor truck can replace coastal ships in handling the cargoes of /Northland, cannot be substantiated as an economic project,” said Mr. C. B. Michie, when asked by an “Advocate” representative to express his views on this question.

Amplifying this statement, Mr Michie said: “Although..; many improvements and radical alterations in our transport system have been effected to meet modem conditions, the basic principles . governing the carriage of large quantities of merchandise to the district are slightly different from those Which have served mankind for centuries. “We have ample evidence of this fact in the continued use of both natural and 'artificial waterways in many parts of the world.

j“Fixed charges arising from the high initial construction cost and maintenance of a permanent >railroad and the comparatively high operative costs are such that an. extensive land area in which to pool the first two of these is essential to economic success. ’ -- ; ; • " Taxpayer Will .Pay,, f “We in Northland are fortunate in h'aving both coast linesj,, (especially the East Coast, studded with good harbours workable in most weathers, “The introduction of the Diesel engine to our coastal vessels at a time when running and maintenance costs were menacing the small coastal steamers has placed shipping in such a strong, competitive position that unless we are to experience an era of cheap railway freighting Iby artificial, fiather than economic means, and for which the ■ „ taxpayer must pay, the present system cannot be assailed. “Our present coastal service, upon which we have so long depended, compares more than favourably with similar services in operation elsewhere and with other systems which may be introduced .. . “We certainly all want our freights as cheaply and as expeditiously >as possible,” concluded Mr Michie, “but let us take heed lest we be a penny wise and pound foolish, <‘T r qsi foregoing observations are not based on mere conjecture, but on actual comparisons carefully m'ade between the present system and the 'suggested diversion to rail freight service.” ~