The Daily News. WEDNESDAY, JANUARY 17, 1923. THE RAILWAY REVENUE.

Taranaki Daily News, 17 January 1923, Page 4

The Daily News. WEDNESDAY, JANUARY 17, 1923. THE RAILWAY REVENUE.

When intimating on Monday that the railways had more than paid their way for the last quarter, Mr. Massey rightly considered this pleasing fact would he received with satisfaction by the people of the Dominion. The improvement has been long i.i coming, and therefore will all the more be heartily welcomed, especially as not only have the railways paid current expenses and interest on cost of construction, hut are £lOO,OOO to the good. In the face of such a gratifying result the public will naturally feel curious as to how this improvement has been effected, and it would have been as well if Mr. Massey had given more detailed information, together with comparative figures with the corresponding quarter in the last decade. It by no means follows that because the best quarter of the financial year shows a surplus, that there will be a satisfactory excess of revenue over expenditure for the whole year, although it is to be hoped such will be the case. At the close of his statement the Premier said:—“l am glad to acknowledge the outlook is very encouraging. They (the prices of onr staple products) may not always be as good as they are just now, and we have to prepare accordingly.” It would be prudent to apply that view to the railway accounts in order that disappointment may not be experienced. The real question is whether the expenditure of the department has been sufficiently reduced to ensure the justification of optimism as to the future working of the railways showing a balance on the right side. We must confess to entertain doubt on the point whilst the railways are fettered by the present labour conditions. Another question that arises is whether the necessary steps have been taken to swell the revenue by an up-to-date policy for attracting business. So far as the public are concerned there has not yet been in evidence any progressive business policy for catering for their increased support, while cases have arisen in which there has been a lack of enterprise in declining to meet requirements. It roust also be remembered that the competition by motor vehicles has become considerably keener than was previously the case, thereby demonstrating What

enterprise and business acumen can accomplish. Mr. Massey hopes that if the improvement in the railway revenue continues, the Government will be able next session to reduce taxation, but it will probably be considered that if such reduction is to depend on railway profits there will be small hope of relief. In addition, the Premier has arrived at the conclusion that the public are beginning to realise that ‘‘if we are to have permanent prosperity taxation must be reduced.” The public have realised that fact for some years, and have been waiting, with more or less patience, for the reduction. A commencement in that direction has certainly been made, but much more is needed. In the railways the country has a magnificent asset which only needs to be exploited on sound business lines, untrammelled by political interference and consideration, in order to pay and be an immense boon to the whole community. For the present it is pleasing to know that for one quarter at least the railways have “turped the corner” and it is to be hoped this feature will be even more conspicuous in the future.