RAILWAY DIFFICULTIES.

New Zealand Herald, Volume LXVI, Issue 20387, 16 October 1929, Page 12

RAILWAY DIFFICULTIES.

Discussion of the Railways Statement by Parliament yesterday centred largely round tho question whether they shouid or should not be commercialised,, but, as a circumstance relevant to tho prospects of a profit or a loss on working, motor competition was considerably emphasised. The public knows well enough that the railways are at present producing a deficit. To the ordinary man, therefore, the elimination of that loss appears a highly desirable object, and he will be heartily in accord with any proposal to meet the position. As a counter to making the lailway system to all intents and purposes a commercial enterprise, allowed to operate as if in private hands and expected to produce the results (that would bo demanded under such conditions, a good deal is being promised from the proposed regulation of motor competition. It is not wise to expect too much from this. It can be admitted at the outset that railway revenue suffers considerably because of the number of motor vehicles on the roads. For the serious fall in revenue from passenger traffic the privately-owned motor vehicle must be held largely responsible. Hero there is no possibility of regulation, and none is proposed. Turning then to commercial services, competing for both passengers and goods, the statistics officially compiled by the Government Statistician do not encourage the hope that their regulation or complete elimination would be tho salvation of the railways. According to these figures service cars and lorries engaged in regular services are valued at £552,000, which is roughly 1 per cent, of the capital invested in open lines of railway. There is nothing to say how many of them are actually in competition with the railways. It is a fair inference that a considerable number are not. Even if all of them were, it is surely too much to suggest that motor vehicles represented by a little more than £500,000 of capital are wholly, or even to a major extent, responsible for the financial difficulties of the railways, that their complete elimination would end those difficulties. The conclusion from this is that though motor competition docs undoubtedly affect the returns to some extent, its importance and consequences are apt to be very greatly exaggerated. The proposed coordination of transport promises to be slow, cumbrous and expensive. If, or when, it is effected, there will still remain the greater task to attempt if the railways are to pay their way. The only method of reaching that end is to run them to pay, and the country is entitled to demand that this should be done.