STATEMENT DEBATED IN HOUSE

Sun (Auckland), Volume IV, Issue 1081, 19 September 1930, Page 11

STATEMENT DEBATED IN HOUSE

THE SUN'S Parliamentary Reporter PARLIAMENT BLDGS., Thursday. THE need for drastic economies in the administration of the New Zealand railway service was stressed by the Minister of Railways, the Hon. W. A. Veitch, in the House this afternoon, when introducing the discussion on the Railways Statement. Mr. Veitch struck a note of optimism for the future, but the Leader of the Opposition, the Rt. Hon. J. G. Coates, who followed Mr. Veitch, decried the Minister's attitude, and said it was pessimistic and his speech a mass of platitudes.

Mr. Veitch began by saying that it must bo remembered that the Railway Department was a great national service reaching far beyond the mere figures contained in its financial report. Last year the revenue was approximately £8,250,000, which represented a decrease of £90,000 on the figures for the previous vear. On the other hand there was an increase of nearly £900,000 in the working expenses of the department. At first glance the figures, of the railway finances might give an impression of carelessness in the handling of the service, and.. Air. Veitch himself had had that impression. However, when lie had looked into the question further he lia<l found that there was a great deal to be said for the increase in expenditure. A good deal o*f the increase in the costs of last year had been due to the need for catching up the arrears of repairs. Regarding finances, however, Air. Veitch felt that some changes and improvements were needed in the railway system of accounting. He was satisfied that the. department would be unable to meet the requirements of the existing law in regard to setting money aside for depreciation, interest on capital and , other relative accounts. However, no* change would be made in the railways policy until the receipt of the report of tbe Royal Commission recently appointed to inquire into tho whole subject. After that had been received the whole question of policy would be gone into. TRAIN MILES ELIMINATED Economies had been effected to date, however, and 870,000 train miles yearly had been eliminated, resulting in a great saving in operating costs. This curtailment was amply justified when it was remembered that in the previous five or six years there had been an increase of 2,900,000 train miles a year. ICxperience had .proved that it was futile to spend money year after year In chasing business that it was impossible to catch. Regarding t,he closing of branch lines, Air. Veitch said he had been recommended to close down certain branch lines that were showing heavy losses. On going into the question ho had concurred with the recommendation and issued instructions to that effect. Ho had met with considerable success, however, in this direction, because by means of vigilance committees settlers in the areas affected had been responsible for bringing back trade to the railways and some branch lines had been able to be kept open. Mr. Coates: How many of them? Air. Veitch replied that it was hoped to reach that happy state of affairs in most of the districts affected. Referring to motor competition. Air. Veitch said it was not the policy of the present Government to enter into such a large enterprise as combining the road and rail transport, as had been done in some other countries. Tho added cost would be tremendous. Ho would say. however, that if legislation could be arrived at to co-ordin-ate the motor transport owned by private enterprise, and the railways owned by the people on rational lines, a great national loss would be saved. The extension of legislative powers would be of benefit to all concerned. The present very heavy cost of competition between the Railway Department and private enterprise could and should bo cut down. STAFF DISMISSALS Referring to staff questions. Air. i Veitch said the only painful duty that | had devolved upon him while in office i I was the dismissal of men from the de- \ ! part men t. Although many said the j j position was hopeless, the Minister was one who believed the Railway Depart- I i ment had a great future. The fact had i to be faced, however, that unless the railways finance was brought o a satisfactory position, unless transport legislation could be introduced to eliminate waste through needless competition and unless internal economies could be effected he would not only have to dismiss casual employees, but also have to make an annual reduction in tho number of permanent men. Therefore Air. Veitch had had the painful duty of taking the position in hand at once, because if he had not done so at once in a very few years every man in the railway service would have suffered. The first thing to be done was to strengthen the railway finances and this could not be done without the cooperation of the staff. Mr. Veitch had the satisfaction of knowing that he had the goodwill and help of every member of the railway staff in New Zealand. Discussing the future of the Railway Department, Mr. Veitch said New Zealand was a young, developing country and its citizens had plenty of initiative, so that there was no peed for fears for the future. One of the reasons for the present state of the Railway -Department was the general business depression, but the department would have to effect more ecnomies in future. Mr. TV. J. Jordan (Labour —Alanukau): Do you mean that more men will be discharged? Mr. Veitch: No one knows what the future will hold. “FUTURE FULL OF HOPE” However, he continued, there would bo more settlement in New Zealand, an increase in industry and a development in the tourist traffic, so that the result would be more transport business for the railways. All who studied the present position must realise the need for drastic and comprehensive economies at present. The future, however, was full of hope., At this ATr. Coates and Air. .T. Kitchener (Reform —Waitaki) laughed loud ly. Air. Veitch said their laughter showed that those members had no hope for the future of the railways. The present difficulties had largely been contributed to by Mr. Coates’s reckless extravagance as Alinister of Railways. Air. Veitch hoped there would not be a repetition of that or of Air. Coates as Alinister of Railways. All*. Coates rose with a broad smile and said that Air. Veitch had looked tho saddest and most miserable-indivi-dual be had ever watched. Mi*. F. Lye (United —Waikato): You j have got a bilious attack. Air. Veitch: That is personal vulgarity. Air. Coates was continuing his speech when Mr. Speaker interrupted him and asked Mr. Veitch to withdraw his remark. Air. Veitch did so. The Minister had delivered a long string of platitudes. Air. Coates said, but what had the country got today, ho asked —a Alinister who was doing all he could to run backward. Political

stops had been put in one of the express runs'and business people bad not been considered. New Tines were being built regardless of expense and then the Alinister was talking about what fertiliser would do for the tourist traffic. The Minister was the most

hopeless the country hah ever had. j The lion, members had his statement before them, but it only .amounted to j two pages and then the rest was left | to committees and commissions. ‘‘ATTEMPT TO MISLEAD" The Minister had loaded his department up with charges that had no right ! to be there, Mr. Coates continued, and lie had attempted to mislead the public regarding the workshops. The figures given in his report were not ] correct. “I don’t know what position we are in regarding our railways,” said Mr. j Coates. “What with the changes of I Ministers and the Commissions that I have been set up, there is no knowing j where we will end.” After referring to the general manager’s statement iri the report that the rolling stock was getting old and that the cost of maintenance must increase, Mr. Coates said that there was no reason to doubt that the Minister was in difficulties. The Minister admitted that there was a big loss on the running of the railways, but it was not possible for the country to function without them. No general manager would ever make the railways pay as long as they were subject to changes of Government and strokes of the political pen. he continued. Changes had been promised and they had all been expecting great things, but nothing had happened. All the Minister had done was to bring more hardship to the Kailway Department than any other Minister had ever succeeded in doing before. The railways would never be a success under the present system and there was only one way to bring them to a basis where the work could be conducted on a commercial footing and that was to hand over the whole concern to a director. Canada, Belgium and Germany had done that and had made a success of it. Germany’s railways had been run at a. loss last year, but Germany had only recently changed over. LOSSES UNAVOIDABLE” AVhv should the taxpayer be asked to make up losses, he asked? A loss could not be avoided under the present system. Kven the Minister was afraid to increase freights. Mr. Veitch: Oh, is he? A point of order, Mr. Speaker. Has the lion. Member the right to refer to my courage? Mr. Coates withdrew the remark and said that the Minister could not increase freights and neither could the chairman of the Railway Committee tackle it. Mr. J. T. Hogan (Independent— Rangitikei), chairman of the Railways Committee: Tackle what? Mr. Coates: What J said. The Hon. Member should listen. The Hon. Members should study the balance-sheets of the countries that had removed their railways from political control. Mr. Coates continued, and they would see that the New Zealand railways would be better in independent hands. Mr. Hogan: That’s the old Conservative policy. Mr. Coates: It may bo, but it is the only possible one. The bell here put an end to Mr. Coates’s speech.