BELGIAN RAILWAYS.

New Zealand Herald, Volume LXIII, Issue 19453, 8 October 1926, Page 15

BELGIAN RAILWAYS.

NATIONALISATION FAILURE.

POLITICAL INFLUENCE BANE. NEW SEMI-PRIVATE COMPANY. For many years the Belgian State Railways have been held up to the rest of the world as a pattern of what nationalisation can achieve. " The announcement that the lines and rolling stock are now to be turped over to a semi-private company,'* says the London Daily Telegraph, "must come as a shock to those who believe in nationalisation as a universal panacea. The depreciation in the value of the franc is put forward as a main reason for this startling change on the Belgian railways, but tho fact is that the lines under State control have been too inefficiently .worked to produce profits. This is attributed largely to political influence. The State, railways have not been able to withstand the present economic strain and inefficient management as well. "On the engineering and technical sides there has been no reason for complaint, and the public, who havo travelled at fares below the. economic levol, havo had no reason tc complain. But the Government, finding that the deficit on last year's working amounted to 95,000,000 francs, naturally took alarm and decided to hand the undertaking over to a company, which will be known as 'La Societe National des Chemins de Fer.' The undertaking j in question consists of 3000 miles of standard gauge lines, 4600 engines, 9000 coaches, 1600 luggage vans and about 120,000 goods waggons." Political Influence. It was explained to a representative of the Daily Telegraph recently, at tho Belgian Consulate in London, that the transfer was not so wide-sweeping as would at first appear. "The State," said an official there, "will still hold control and remain the owners of the railways, inasmuch as they will retain a sufficient number of shares to give thein the casting I vote on any question of importance that may arise. All that has been done now has been- to attempt to get rid of the political influence that has prevailed for some considerable time in the management of the lines, and put the undertaking on a sound commercial footing. The body m actual control of the lines and of the running of the trains will be a commercial body wgrking with the object of securing an adequate financial return." It was stated in other quarters that tho Belgian railways are now considerably over-staffed, the number of employees having grown at an alarming rate, especially cince the war. The opinion was expressed that the first step of tho new governing body ought to be to reduce the number of men to an economic and to lower the retiring age from 65 to 60 years. Another reform will be to increase the fares and tariffs. Tho freight charges in many cases were increased by 10 per cent, last June and the announcement was subsequently made that the charges in all classes of tho tariff would bo raised by another 10 per cent, on August 1, and that the tariff on goods not increased in June would go up by 2 per cent., to come into operation at tho same time. Furthermore, the charges for delivering of goods to houses would be 50 per cent, dearer. The Question of Fares. The figures for the working of tho State railways in 1925 showed an increase of tonnage and of the number of passengers carried over those of tho previous year and also a considerable economy in fuel and material. It is believed that the increase of the freight charges can be safely borne and an equally efficient service can be maintained, but the question of higher passenger fares is a delicate matter, which the new Council of Administration, consisting of 21 members, will have to take into careful consideration. A heavy increase might have the effect of causing more people to travel by road, a means of conveyance with which Belgium is particularly well equipped. The Daily Telegraph adds: —"Economy by any means and increased revenue are the two ends which the new directorate, have to keep plainly in view. The need for economy is being felt all over the country and through its various departments to an extent that has not hitherto been recognised. It is even extending to I.ondon, for we learn that the office of the Consul-General in Bedford Square is to be closed and the work transferred to- the Belgian Embassy in Belgravc Square."