DOMINION’S RUNNING SORE

Taranaki Daily News, 19 September 1930, Page 6

DOMINION’S RUNNING SORE

RAILWAY SYSTEM LOSSES MR. C. A. WILKINSON’S INDICTMENT — ', x NEED OF MORE ROLLING STOCK. ■/' —— -J By Telegraph.—Press Association. Wellington, September 18. Some of the most thoughtful ideas in respect to losses on the railway system, in the course of a debate on the Railways Statement in the House of Representatives to-night, were advanced by Mr. C. A. Wilkinson (Egmont). _ “The losses on our railways. constitute a running sore in the Dominion’s finances,” he said, “and, unless we cure it very shortly, we will find ourselves in serious difficulties. I am not pessimistic altogether in regard to* railways. I admit the position is bad, but I believe the .position of the, operating lines can be considerably improved. I have different opinions about the construction of new lines.” One of the sources of loss was freight. The system of classification was resulting in lost trade, and he believed the returns would show that certain classes of goods were being lost to road competitors, who based their tariff on weight classification • alone, as against combined weight and bulk classification on the railways. He suggested that the Minister should look into that with a view to removing existing anomalies. The higher classifications should be reduced considerably, even if it meant increasing the freight on the lower classes of goods. , "" The seriousness of the position was shown by a comparison between the net earnings for 1926 and those for 1930. In 1926 the net earnings amounted to. Almost £2,000,000, and four years later they were less than £1,000,000. That plainly called for urgent inquiry, Then there was a bitter complaint by the general manager of the nbn-supply of rolling stock,’and that constituted a great indictment of the political head of the department and the Government itself, since they apparently would not provide the necessary finance. According to' the figures used by . the general manager, the department' had been starvejl to the extent of £500,000 last year for the purpose of new. rolling stock, and the same position obtained this year. If the question of road competition was tackled he expressed the hope that the old system of railway monopoly would not be restored. In some cases It might be necessary to do away with railway services and leave road transport to cope with the traffic. In other parts the service could be confined to goods alone, eliminating the carriage of passengers. The imperative need, however, appeared to be additional, rolling stock, the lack of which was hampering the earning capacity of . the railway system.