RAILWAY POLICY

New Zealand Herald, Volume LXXIII, Issue 22389, 8 April 1936, Page 15

RAILWAY POLICY

DEBATE ON BILL BOARD CONTROL DEFENDED LESSONS FROM THE PAST [BV TELEGRAPH —SPECIAL REPORTER] WELLINGTON". Tuesday The defence of the system of board control and replies to statements made last week by Ministers regarding the business interests of members of the Railways Board were continued by Opposition members when the . second reading debate on the Government Railways Amendment Bill was resumed in the House of Representatives tonight. Following last night's tactics Government members maintained a studied silence.

"The Minister made a somewhat unfair attnek 011 the board during his second reading speech," said Mr. W. P. Endean (Opposition—Pnrnell). "He stated that Sir James Gunson, besides being deputy-chairman of the board, was concerned also with the New Zealand Insurance Company, a large oil company, and that he had timber interests. It was suggested that because of these interests he was not doing his best for the railways. Consequently the impression is gained by the public that he is not discharging his duties in the proper way, but I do not think that either the Minister of Public Works or the Minister of Railways would allow that impression to go unchallenged."

The Ohairman'B Services Mr. Endean said the chairman of the board, Mr. H. H. Sterling, had devoted practically the whole of his time to the affairs of the board and he did not think there was a better business man in New Zealand, especially when it came to transport. Mr. Sterling must have been responsible to a great extent for the undoubted improvement that had taken place in the railway service. "It seems to me," Mr. Endean added, "that his services could be well used by the Government when he returns to New Zealand." Referring to the net earnings of the railways since the board was set up in 1931, Mr. Endean said they had increased from £688,727 in that year to £1,087,491 in 19.15. He would like to know whether the Minister thought that improvement was not in any way due to the ability of the members of the board. The Minister: A great many employees were discharged and wages were reduced. Those were two big factors. "I am going to draw the inference," Mr. Endean added, "that the Railways Board has been to a considerable extent responsible for the increase in the net earnings and it is significant that this improvement has taken place during the worst depression New Zealand has ever known."

" A Great Error " Referring to the uncompleted lines which the Government proposed to finish, Mr. Kndcan expressed the opinion that the country had made a great error in accepting the policy which had been outlined by the Government at the last election, and was now to be carried into effect by means of the bill. " No matter how the money is going to be raised/' he said, " it is bad business for the country to embark on huge capital expenditure with inevitable losses." " It seems to me that the railways are once again to become the plaything of politics," said Mr. W. J. Broadfoot (Opposition—Waitomo). It was a great pity that the bill, the first major piece of legislation brought to the House by the new Government, should have been introduced in a cloud of innuendoes against public men. For an hour and a-half there had been an attack on members of the board, whose characters had been besmirched. It was an undesirable way to introduce a bill.

Buffer Against Political Pressure Emphasising the dangers which he saw in political control of railways, Mr. Broadfoot mentioned an Otago branch line over which he said two private members had disagreed, with the result that ultimately the line was taken in the wrong direction. The board was a fine buffer against political pressure. Members of Parliament in the old days had been nothing .more nor less than labour bureaux endeavouring to find jobs for hundreds of applicants. It appeared that the old system might be revived under the change proposed in the bill. Mr. Broadfoot said the Government would be well advised to tread cautiously in the construction of new lines. Impressive Maiden Speech Praise for the way in which the railway service had been in recent years was voiced by Mr. J. A. Roy (Opposition—Clutha). In his maiden speech in the House Mr. Roy made a very pood impression, and was loudly applauded when he sat down. He said that the service given by the department recently had been out of all comparison with that of some years ago. The railways were willing to meet a customer and go a long way for new business. By that means the department had regained a good deal of business lost in previous years. Mr. J. Hargest (Opposition— Awaru.i) said there had been a marked improvement in thq railwnv service under board control. It was not wise to construct good roads alongside railways which were giving an efficient service. That had hampered the railways in their general operations. He admitted that past Governments had had their sins.

After the Minister had replied to the debate the second reading was carried and the House rose at midnight.