NEW ZEALAND RAILWAYS

New Zealand Times, Volume L, Issue 11663, 30 October 1923, Page 6

NEW ZEALAND RAILWAYS

SUBSIDY POLICY UNWISE?

BRITISH CRITICISM.

Australian and N.Z. Cable Association. LONDON, October 28. The “Financial Times,” commenting on the report of the New Zealand railways, says that one of the features o-f the. administration that will not be regarded with unmitigated satisfaction ie the virtual subsidising of industry at tho cxjjense of transportation. “Thus we find that many services are performed below cost, which means at tne cost of other users and of the taxpayers. Limo for manuring farmlands was carried 4,506,500 ton-miles for a trifle over a farthing a ton per mile. Butter, cheese, and road-metal, the latter being for the benefit of motofcompetition and entailing a loss of £50,000 per annum, were in much the same position. In many other instances exceptionally low rates' were granted to assist in establishing industries which are now flourishing, but still remain in .force although the need for such help is paist. “The Minister for Railways states that any increase in freight rates at this juncture to enable the railways to earn interest charges would tend to divert more traffic to the roads. We imagine that a (solution of the problem could be found in ceasing to subsidise flourishing or competitive industries.”