The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. WEDNESDAY, SEPTEMBER 3, 1930. THE RAILWAYS

Southland Times, Issue 21178, 3 September 1930, Page 4

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. WEDNESDAY, SEPTEMBER 3, 1930. THE RAILWAYS

Nothing new is revealed in the Railway Statement presented by the Hon. W. A. Veitch. Its dullness is matched by the caution displayed in dealing with certain topics where greater frankness would have been advantageous. Mr Veitch tells , once more the story of the decline of the Department’s finances, and the dissipation of its reserves, so that at the present time it cannot pay its principal creditor, the Consolidated Fund. It will be remembered that during the by-election campaign the workshop reorganization was mentioned, and use -was made of the fact that the estimate of the scheme was exceeded by £601,865. Mr Veitch repeats these figures, but he does not give any details to show how this excess was made up. He does mention that the acting chief mechanical engineer who drew up this scheme estimated that the annual saving would be £270.000. Allowing £36,000 to meet the interest cost on the additional outlay, the saving expected would be £234,000, which, if realized, would mean the extinction of the capital cost in ten years. Mr Veitch docs not say there will be no saving, he does not say that the estimated saving will be secured; but contents himself with “it has yet to be proved whether this measure of economy will accrue as a set-off against the heavy capital expenditure.” Mr Veitch is not definite; he is cautious to the extent of leaving the matter in a position that denies the previous administration any credit without blaming it. Actually, if only £150,000 is saved the expenditure is more than justified because it provides better working conditions and greater efficiency. This could not have bceu secured for £200,000. The Garratt-locomotives were mentioned by Sir Vincent Ward in terms of contempt, but Mr Veitch’s statement shows that the trouble is centred chiefly in the fuel arrangements. Sir Switch says: “Most of the trouble having arisen in connection with their coal consumption,” and also declares: “There is no doubt about their tractive effort.” The financial details of the statement arc interesting. They show that the operating expenses per mile of line open rose from £1959 in 1929 to £2083 in 1930, and the total operating cost from £6,374,579 in 1929 to £6,848,026 in the year ended March 31. Interest charges fell from £2,33.1,335 in 1929 to £2,132,324 in 1930 owing to the writing off of £8,100,000 of the capital, but as the grant from the Consolidated Fund for losses on developmental lines was discontinued, the increase of deficiency resulting from the altered financial policy was £356,241, leaving £422,285 of the increase of deficiency to be accounted for by other factors. This means that the Consolidated Fund was relieved of £356,000. Examining the operating receipts we find that while the goods traffic fell in the North Island from £2,721,384 to £2,685,577, in the South Island the revenue increased from £1,938,634 to £2,026,066, carrying on the upward tendency of the last few years. The total revenue from the two islands in the two years was 1928-29. 1929-30. £ £

North Island .. 4,421,986 4,312,19 S South Islancl .. 2,862,205 2,920,308 The General Manager’s report disposes of the idea that the loss to the passenger traffic is due wholly to motor-bus competition. In fact he says, “The increasing diversion of the passenger traffic must, I think, be ascribed to the increasing use of private motor-cars.” It is interesting to notice, too, that Department’s road motor services have been run at a loss, and that the loss shows an increase. The figures arc:

This means that while the revenue rose £3,317, the expenditure expanded by £5,405. The Hutt-Wellington and Oamaru-Tokaraki services showed improvements, but the NapierHastings and Christchurch-Midland runs went back to the extent of £8,751. A disquieting portion of the General Manager’s report refers to the rolling slock: Every year during the peak season we receive complaints of shortage of rollingstock, and these will inevitably become not only greater in number, but, unfortunately, of increasing justification, unless prompt and effective action is taken to keep our rolling-stock up to a standard that will enable us to give a service that will be reasonably satisfactory to our customers. Unfortunately, we were last year cut down by some half-million pounds in our requisition for finance for capital expenditure, and the reduction in expenditure had to be made principally in con-

nection with rolling-stock construction. I very keenly regret that this year we have again been cut down by approximately half a million pounds from our requisition, with the result that we will again find ourselves restricted as regards rolling-stock construction. Wo have the workshops which were expressly equipped to enable us to adequately meet requirements in the matter of rolling-stock construction; we have a crying need for the rolling-stock, but, unfortunately, the necessary finance has not been forthcoming. I desire to urge as strongly as possible the pressing necessity of our situation in this regard.

The restriction on rolling stock must bo detrimental to trade expansion, especially in the face of strong road competition, and the shortage, amounting to a “crying need,” is one which is extremely unfortunate because to a certain extent it means business lost. Reading the General Manager’s plaint, it is impossible not to recall with astonishment the energy with which the Government is proceeding with the construction of lines estimated to add largely to the annual deficits.

1929. £ 1930. £ Revenue .. 102,385 105,702 Expenditure .. 111,713 117,118 Loss .. .. .. £9,328 £11,416