The Daily News MONDAY, OCTOBER 15, 1934. RAILWAY CONTROL.

Taranaki Daily News, 15 October 1934, Page 4

The Daily News

MONDAY, OCTOBER 15, 1934. RAILWAY CONTROL.

OFFICES: NEW PLYMOUTH, Currie Street. STRATFORD, Broadway. HAWERA, Hisrh Street.

The discussion in the House of Representatives upon the railways estimates showed no reason for belief that a return to political control of the railway system would be of any benefit to the Dominion. There are, of course, certain politicians who see no other means of controlling State undertakings than that of direct Ministerial control, despite the fact that the history of State services in New Zealand makes it clear that greatest success is achieved where political interference with administration is eliminated. A State undertaking like the railways, with an expenditure of nearly five and a half million pounds a year, can only hope to be profitable if it is run on strict commercial principles. The tangle into which the railways’ economic position had drifted a few years ago was due to the weakness of political control and the competition of better organised transport services. If the present Railways Board had not to make the best of the legacy accumulated in the years when political pressure influenced railway construction quite as much as real public need, the board’s task would: be much easier than it is to-day. But for the fact that the railways had for many years the monopoly of inland transport service public opinion might have awakened earlier to the costliness of political control. It was not until the railways had become a drain upon the exchequer rather than an asset to the Dominion that Parliament consented to try what non-poli-tical control could do to bring about an improvement. Opponents to the change based their principal objection on two ground's. They feared that freights and fares would be increased and services in outlying districts curtailed, and they thought the employees of the department would find non-poli-tical control made for harsh conditions of service and unrest throughout the service. It is quite true that traffic on certain branch railways has ceased, and that certain major construction works, like the North Auckland. East Coast and South Island

Main Trunk railways, were £ closed down. It may be that j when conditions improve those j works can be resumed, but < as the Railways Board was < created to operate the rail- £ ways on a commercial basis j its determination not ( to be bur- j dened with still more' unpayable < extensions had to be respected, t although it involved the sacri- I flee of much capital expenditure 1 which cannot earn interest noy ‘ that the construction of certain lines has been discontinued. In all other respects the fears of , the change from direct Minis- , terial control have not been , borne out by experience. Fares j and freights are not excessive, in some instances they are > lower, the staff is loyal and satisfied that although inefficiency will not be tolerated, it will receive fair treatment from the board, while the public is finding i that railway officials are endea- : vouring to render willing and ; satisfactory service from one ; end of the Dominion to the : other. Nor have the financial i results been less cheering since the internal administration of \ the railways has become nonpolitical. It is true that the raili ways are not yet paying their i way. That is to say, they are i not returning sufficient profits to ■ pay the full interest charges involved. But the revenue is increasing, and expenditure has been reduced considerably, though the end of the reduction i possible seems to have been • reached. To have increased net ! earnings in so difficult a period ’ as that during which the Railways Board has been in office shows that management has been prudent, and every opportunity taken of increasing earning capacity. Present day complaints, indeed, arise from the commercialised administration adopted by the board. Nearly all the criticism of the system in Parliament last week was due to the fact that concessions sought from the Railways Board were viewed by it first of all from the point of view of the earning capacity it would increase or diminish. Another source of complaint is in regard t, to competition of the railways j; with other forms of transport in which the Railways Board is said to hold an unfair handicap over its competitors. The plain truth is that the public cannot have it both ways. If the rail- [’ ways are to be a business, coni cern they must seek freights - just as trade is sought by any other commercial organisation. It is true that controlling a State undertaking the railways authorities are bound to give consideration to other transit. port services also establish-

ed by public money, but not possessing the advantages conferred upon the railways by statute. The railway system has had many privileges conferred upon it, and, as in most other affairs, privileges carry the responsibility of seeing that they are used with fairness and discretion. If the responsibilities are neglected privileges have a habit of disappearing as well, and particularly when they can be taken away by the force of public opinion. This is a phase of administration that must not be overlooked by the Railways Board. So far the board has justified its creation and the I’emoval of State commercial enterprise from political control.