CONTROL OF RAILWAYS

Taranaki Daily News, 18 November 1930, Page 7

CONTROL OF RAILWAYS

PAY ONLY WITH EFFICIENCY ’ SIR OTTO NIEMEYER’S EXPERIENCE By Telegraph.—Press Association. ' Auckland, Nov. 17. “The railway question in New Zealand is very important and can land you into a good deal of trouble and loss if things go wrong,” said Sir Otto Niemeyer in an interview. “I believe that under modern conditions railways can pay only if they are extraordinarily efficiently managed. I make no aspersions on the Railway Department, but obviously what might be efficient in the railways might not suit certain political views or localities.’’ Sir Otto quoted the system adopted in many European States which before the war had ordinary State railways. Those States, while retaining ownership, placed the railway management under an independent board having perhaps a whole-time chairman and directors, who were lion-officials. These were given absolute control, except of borrowing, but including such things as rates and decisions concerning new construction.

He quoted the British Broadcasting Corporation and the Victorian Broadcasting Corporation and the Victorian Electricity Commission as examples of the movement towards a new form of administration of qua si-commercial State undertakings.