REFORM APPROVAL.

New Zealand Herald, Volume LXVIII, Issue 20851, 18 April 1931, Page 13

REFORM APPROVAL.

FUNCTION OF THE BOARD.

CONTINUITY OF POLICY. CONTROL ALMOST ELIMINATED. [BX TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON. Friday. Speaking in the Committee stages of tho Railways Amendment Bill in the Houso of Representatives this evening, the Leader of the Opposition, tho Rt. Hon. J. G. Coatcs, said tho board of directors would be responsible for designing the business policy of tho railways and seeing the management carried out that policy. A majority in the was of tho opinion that New Zealand should ondea vour to follow the priciple that had been adopted successfully in other countries by allowing tho railways to bo controlled by a board. That board, Mr. Coates asserted, should as nearly as possible conform with the; principles of a board of directors of an ordinary company.

Tho next question was just how tho House was going to set up a directorate. There had been complaints that pressure brought to bear from electorates and other quarters had prevented tho railways from being run on business lines. The intention of tho bill now boforo. tho House was to eliminate political control.

Labour Members: Does it do that? Mr. Coates said tho bill eliminated political control except in one particular, namoly, in that tho Treasury was virtually in tho position of a receiver. It was hopeless to put tho system on trial on the understanding that thero should bo a year to year Budget. Tho Treasury at somo point must come into the situation, but, under tho bill, tho Treasury was in a position of receivership. That difficulty, however, might bo overcome if a strong board was appointed. It would bo possible for a strong board to givo a lead to the Treasury in regard to the system of accounting they desired to be followed.

Mr. Coates said the board must ascertain from the management the position of the railways. Up to that point, it must depend upon their management, but from information that was placed at tho disposal of tho directorate, it would undoubtedly mould its policy. Up to tho present, there had been changes of Government, with consequent changes of policy. Under the board, a continuity of policy would be possiblo. Reports should be presented to Parliament annually on •the samo lines as the report previously supplied by tho Minister. Mr. Coates said he wanted to ask the Prime Minister how he proposed to treat the present concessions that wcro given to school children, and were granted in connection with freights on fertilisers and so forth. Were tho present concessions to continue'! Mr. C. A. Wilkinson (Independent— Egmont): Tho board will determine those points. , Mr. Coates: Oh, no. It will be a matter for the Government to decide whether it will make up for tho losses consequent upon continuing these services. I want an assurance that under this bill these concessions will not be terminated without reference to Parliament.