COSTLY RAILWAYS

New Zealand Times, Volume LIII, Issue 12363, 5 February 1926, Page 7

COSTLY RAILWAYS

BRANCH LINES EAT MONEY LOSE QUARTER MILLION ANNUALLY NEW ENGINES TO BE TRIED Tho branch railway lines of New Zealand result in a heavy annual loss to tho State, and effort is being made by those responsible for the running of the system to lessen the cost without reducing efficiency.

The losses on the branch lines, including the interest charges, runs into a quarter of a million sterling annually. Some time back the services on these unpayable stretches of railway were 1 reduced, hut the motors stepped into the breach and supplied the needs of travellers just at the time when the public dissatisfaction at the curtailment of the services began to make itself very distinctly heard. It is the aim of tho present Minister for Railways, the Hon. J. G. Coates, to adopt every possible means of reducing working costs and to so improve the services as to enable these lines to hold their own with other forms of transport. It is nob anticipated that the revenue will be greatly increased, but that much improved services will be provided without additional cost. Mr Coates is convinced that better serrioes should be provided on such lines, and that working costs should be reduced as far as practicable by the utilisation of self-propelled units and by other means. He expressed the oninion last session that legislation should be enacted providing that the railways should be reimbursed for the annual Tosses incurred, as was done in Victoria, after making adequate provision for tbe profits made by main lines as the result of traffic from tho branches. Unless the State was prepared to subsidise reasonable services on these branch lines it would be impossible to avoid annual deficits without general increase in rates, which would be manifestly unfair to railway users as whole. Deficits had to be met out of tbe consolidated fund in any case, but the method suggested was more satisfactory from every mint of view, would enable the department to give an efficient service in keeping with modern ideas. Valuable information has been ob» iained regarding different types of self-propelled rail vehicles. A Clayton steam car arrived from England some time aco. and it has been derided to place it # in service on the Foxton branch line, while on the Grevtown . branch fijie a Ford oil engine will be tried. The latest available figures snow that the loss on the Oreytown branch was about £2500 for tbe year.