A CONTRAST IN METHODS.

Taranaki Daily News, 20 November 1930, Page 8

A CONTRAST IN METHODS.

The different methods of approaching an economic problem are aptly illustrated by those adopted in regard to railway deficits in New Zealand and Great Britain. In this country the railways are State owned and operated; in Great Britain they are owned by private companies with privileges and powers restricted by the Acts of Parliament under which the various railway companies are functioning. In both countries there has been a serious drop in railway receipts and the annual deficits have been progressively worse. In this country there liaVe been inquiries and commissions galore and tlie combined efforts of these and the railway management is a saving of operating expenses by reducing services and an endeavour to stimulate' revenue by increasing charges to the public. In England and the Dominion the competition of motor borne traffic is the chief cause of the."drop in railway revenue, but except in a few- isolated instances there has been no effort in this country to coordinate the two classes of transport. Nor has there been any serious to bring down .working costs by purging the staff of redundant officials or revising rates-of pay and conditions of labour. Instead of this prices are raised to the public, but whetl/er this will really increase the revenue still remains to be seen. The railway companies in Great Britain have adopted other methods. They obtained powers enabling them to co-ordinate rail and motor transport services, and while this has meant that certain railway services have been discontinued, the facilities to the public have been increased rather than diminished. Stopping places in rural .districts have been increased, fares and freights reduced', and a serious effort made to win back traffic that had been lost. The one plan that has not so far been suggested is a general increase in fares and freights. On the contrary, the British railway authorities began at the other end. Last year all employees, from the lowest rank to the directors, were.;, asked .to accept a reduction in pay. The companies met their employees in conference and showed them the actual figures in connection with the business, and an amicable arrangement for reduced pay was arrived at. Even though these efforts failed to reduce the deficit last year, the companies are -still of opinion that a reduction in costs is sounder business than an attempt to increase charges. They have made a .further demand upon their staffs to accept lower rates of pay, and argument in regard to this is proceeding at the moment. It will be interesting and instructive to see whether the method of reducing costs and cheapening services will prove more effective than the policy adopted here of increasing charges and allowing staff matters and other costs to be subordinate to other exigencies than the demands of railway? operations.