TRANSPORT PROBLEMS.

New Zealand Herald, Volume LXIX, Issue 21165, 23 April 1932, Page 15

TRANSPORT PROBLEMS.

AUSTRALIAN RAILWAYS.

INCREASE IN DEFICITS. PROPOSED FIVE YEAR PLAN. [FROM OVR OWN COEItESVON DENT. ] SYDNEY, April 14. If the Minister for Home Affairs, Mr. Parkhill, has his way, Australia, will have its own five-year plan—one dealing with its complicated transport problems. Mr. Parkhill stated this week that he had prepared for the Cabinet proposals that were based 011 the report made recently by a special committee of experts who examined (ho position with special reference to the finances of the various railway systems, Commonwealth and State. Australian transport has developed along haphazard lines and is now in an almost hopeless state of muddlement, with railway deficits increasing each month, until they have become a burden far too great for any Government to shoulder. In practically every Stale but New South Wales tho position has been tackled and some huge savings effected, particularly in \ ictoria. In New South Wales the Government thought that motor transport was almost entirely to blame for the. heavy losses suffered and practically banished motors from the road. It is clear now that the Government was illadvised, for the revenue has made 110 startling jumps. An Important Feature.

An important feature of the new Com- ! monwealth proposals is that unanimity | among the various States, while desirable, ' is not essential to tho inauguration of I any of the three schemes that have been planned. This seems to be a wise move, ; i,s New South Wales seems disinclined 1 just now to co-operate with any other j Government in Australia. The experts pointed out that little could be accorn- , plished in tho direction of improving rail- | way finances until the control of the j railways was placed on a business basis.

It is part of the Commonwealth plan to remove railway management from the. position where it can be affected by every change in the wheel of political fortune. Australia now persists with Feven separate administrations and the idea is to secure co-operate control on modern lines without the States in any way relinquishing possession of their ralway assets. There would be one central management, the object of which would be to overcome the difficult! - es of overlapping Mid wasteful competition. Over-capitalisation Problems.

Australia's most serious problem as far as its railways are concerned is connected with over-capitalisation. This aspect will need very careful consideration. The financial agreement has enabled all the Governments to establish a sinking fund for their public debts. Once the railway management has been placed 011 a reform basis by co-opera-tive action the way would be opened for all railway debts to be funded.

The national railway plan, such as now proposed, would provide for the writingdown of excess capital over a period of years. As to motor transport, it is not the desire of the Federal Government to run this off the road, but to provide for uniform regulation in euch a way that it would be permitted the greater possible freedom of action within its economic range.

Until the New South Wales crisis is disposed of it is unlikely that the Federal Government will be able to devote much time to the problems of avoiding millions in losses by its railways.