THE BRANCH RAILWAYS.

Otago Daily Times, Issue 21621, 16 April 1932, Page 12

THE BRANCH RAILWAYS.

The statement of the Railways Board, on the completion of its tour of inspection of branch lines in the Otago Provincial District, contains poor comfort for those deputations that urged upon it the essential value of the particular lines in which they are respectively interested. Notwithstanding the introduction of economies amounting to £.91,110, branch lines in New Zealand showed a loss for the past financial year of £577,000. Of this sum, £175,824 represents a direct loss on the operating of the lines, the balance of the loss being accounted for by interest charges. These figures show an improvement, owing to economy adjustments, upon those for the financial year 1930-31, when branch lines cost the country £782,299, the actual working loss being £203,604. The loss, however, remains so substantial that the board can scarcely be blamed if it takes the view that in the existing circumstances, and in view of the financial position of the railways, it must further curtail expenditures by reducing, and in some cases eliminating, non-paying branch line services. Many branch lines have, to a large extent,

fulfilled the purposes for which they were constructed. Their developmental value in opening up country for settlement was very considerable, but the railways no longer form the only link tin transport between the farmer and his export market. The farming community was not slow to transfer its allegiance from the railways when the improvement of roads and the advent of motor vehicles offered the opportunity to it. First the passenger traffic suffered heavily, but in recent years motor transport facilities for farm produce have robbed the railways of a great deal of profitable freight, while leaving them to carry farming necessaries, such as fertilisers, under the liberal concessions that are allowed. It should scarcely be necessary to emphasise that, if farmers are now in imminent danger of losing branch line services, they are themselves to some extent to blame. The farmer is free to decide whether he should send his produce by motor or by railway services, but he must not expect to enjhy the best of both. If his decision is, as it appears to be, in favour of motor transport, - the railway services may have to be discontinued. It would be hardly reasonable to expect the general body of the taxpayers to make good a deficit of some £200,000 a year incurred in the operation of railways which benefit a comparatively small proportion of the people and are inadequately supported. The payment of the interest charges on capital expenditure on branch lines must necessarily be continued. That is the price which the railways exact for their developmental work in the past. The Railways Board has made clear it's attitude toward unprofitable branch lines, and rural communities must maks a practical choice. It is for them to decide whether they shall utilise the railways or rely on motor transport. Two considerations should not be overlooked when this decision is made. Bi’anch railways, when they become idle, will still have to be paid for indirectly, and there is no guarantee that the cost of motor transport will remain at present levels when the services are freed from competition.