RAILWAY FINANCE

New Zealand Herald, Volume LXXV, Issue 23130, 31 August 1938, Page 15

RAILWAY FINANCE

"ALARMING DRIFT" HIGH WORKING EXPENSES MR. J. HARGEST'S CRITICISM [ur TELEGRAPn —SPECIAL REPORTER 1 WELLINGTON. Tuesday What ho described as the very serious drift in the finances of the New Zealand railways was criticised by Mr. J. Hargest (Opposition—Awarua) during the debate on the Imprest Supply Bill in the House of Representatives to-night. The Government, lie said, was working toward a state of affairs in which the railways would be run partly as a public service and partly to keep a number of people in jobs. Mr. Hardest said ho did not intend to cast any reflection on the railways staff. It had worked loyally and well for the board that administered the railways under the last Government and would work loyally and well for any Government. The Minister of Railways, the Hon. D. G. Sullivan, was entirely responsible for the present state of the system. Reduced Net Revenue The figures showed an alarming drift in the finances of the department, said Mr. Hargest. Last year the gross revenue of the railways was £8,640,000, compared with £6,627,000 in 1935. The Minister stated up and down the country that he was jubilant at this rise in revenue, but actually while the amount of line administered by the department had increased by only two miles the working expenses had gone up from £5,540,000 to £5,010,000, a rise of about 50 to 60 per cent. The position was that where the railways in 1935 spent £B3 10s to earn £IOO, they were now spending £92 13s 4d to earn £IOO. Whereas a few years ago the net earnings of the railways were £2,330,000, they were now only £632,000.

' " The railways will soon be n dead weight on the shoulders of the country," said Mr. Hargest. "Tho railways are our biggest industry and they are a monopoly. Kvery time tho Railway Department takes over a paying road service to secure its monopoly the Government should remember that it is displacing a taxpayer and making tho burden correspondingly heavier on other taxpayers. The worst feature is that the Government transport departments are showing worse and worse results. Longer Working Hours " The Government cannot claim to have made one single innovation," Mr. Hargest continued. "It cannot claim to have thought of the rail-cars or of the Johnsonville electrification. The Minister is gradually getting more and more of the transport service into his hands and is gradually taking a monopoly of the industry." The large increase in tho number of men employed by the Railway Department was also criticised by Mr. Hargest. In 19.35, he said, the total staff was 19,200 men. Now it was 24,000, an increase of 4800 in three years. The answer to that criticism would bo that . the 40-hour week and better conditions made it necessary to employ more men, but the evidence of railwaymen at the inquiry into the Aylesbury accident showed that the men were working longer hours than they had for years. The point was that with all this increase in the staff there should be no necessity for the men to work long hours.

SERVICE TO PUBLIC CLAIMS BY MINISTER COST OF ROLLING STOCK BETTER WAGES AND CONDITIONS [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday "There has never been a in the historv of the railways in New Zealand when the service rendered to the public has been as good as it is at present," said the Minister of .Railways, the Hon. D. G. Sullivan, speaking on the Imprest Supply Bill in the House of Representatives to-night. Mr. Sullivan was replying to the speech of Mr. J. Hargest (Opposition —Awarua), who criticised the decrease in the net revenue of the railways since the present Government assumed office. It was true that the net revenue was decreasing in spite of an increase in the gross revenue and in the extent of the business, Mr. Sullivan said, but in addition to the necessity of increasing pro vision for rolling stock by more than £BOO,OOO a year, the Government had spent almost £1,000,000 a year in improving the conditions of the railway workers by raising wages, introducing the 40-hour week, and improving the wage schedules. Still further improvements would have to be made before all the requirements of the workers were satisfied. "The policy of taking over road services, about which members of the Opposition complain so much, was started by the last Government," the Minister 'continued, "and in carrying on that policy we have done the only sensible thing that could have been dono in bringing about some degree of rationalisation. There the cases where we have saved as much as £SOOO a year by real co-ordination of road and rail services, and some of the most experienced road transport operators in New Zealand who have been eliminated have congratulated the Government on the steps it has taken." The Minister said that with the cooperation of the men in the railways it was his aim to make the New Zealand railway service the best in the world.

BILLS WITHDRAWN AUCKLAND DRAINAGE SCHEME COROMANDEL RECLAMATION [nr TELEGRAPH- —SPECIAL REPORTER! WELLINGTON. Tuesday No explanation was ottered in the House of Representatives to-day for the withdrawal of the Auckland Metropolitan Drainage -Board bill. The measure, which was introduced some time ago by Mr. W. T. Anderton (Government —Eden) and subsequently referred to the Local Hills Committee came up for its second reading today mid Mr. Anderton merely gave formal notice for its withdrawal, the motion on these lines being carried without discussion. A similar course was followed with regard to the Coromandel County Reclamation and Empowering Bill, the withdrawal of which was moved by Mr. K. W. Schramm (Government — Auckland East).