RAILWAY ECONOMICS.

Taranaki Daily News, 13 August 1930, Page 8

RAILWAY ECONOMICS.

! On the whole the Minister of Railways, the Hon. W. A. Veitch, may be said to have justified his department’s action in closing certain country branch railways in the' South Island and indicating further similar action in both islands in the near future. The actual suspension of services was postponed to afford the localities affected an opportunity Of proposing an alternative to the department. This involved a guarantee of increased revenue either by more traffic or by a subsidy paid by the district concerned. The alternative has been found impracticable, and that this conclusion has been reached is some indication (hat road services are not considered inadequate. If the railways are to lose less of the taxpayers’ money than at present economy must begin, and the sooner the better. Unfortunately the practise of economy is sure to entail a curtailment of services where they are highly unprofitable, and chiefly so because the motor-services — the greatest competitors of the railways —have been preferred to railway transport. It is undoubted that there are many other directions in which economy must be exercised if railway costs are to be brought down. The Royal Commission that is now investigating the organisation of the department must make its recommendations within the next week or two. It is highly probable it will recommend a considerable curtailment of services and of staff, particularly among the executive of the railway service. To carry out such a policy is not likely to make the Ministry popular, but that it is its duty to set the railway house in order is plainly indicated. An annual loss of over a million pounds is a big price to pay for allowing political exigencies to sway the commercial judgment which must be exercised if a large undertaking like the railway is to be made to pay its way. The reception given by Parliament to the first instalment of economics ’was not wholly discouraging, but whether he is applauded or attacked it is to be hoped . Mr. Veitch will realise his paramount duty is to relieve the taxpayer from the. cost of an overexpensive public utility.