N.Z. RAILWAYS HIGHLY PRAISED.

Star (Christchurch), Issue 18385, 10 February 1928, Page 9

N.Z. RAILWAYS HIGHLY PRAISED.

MR FORGAN SMITH IS GREATLY IMPRESSED. The management of the New Zealand interested in the New Zealand Railways the Hon W. Forgan Smith, DeputyPremier of Queensland, who is now on a visit to Christchurch. In an interview this morning, Mr Smith said that he had been greatly interested in the New Zealand railways because the railway problem was causing all Governments in Australia, irrespective of party, grave concern.

“ From what I have seen of the railwaj's here, I have been greatly impressed with the efficiency of the staffs,” Mr Smith added. “ They appear to carry out their duties very well indeed. I am collecting a good deal of information regarding the running of your railways, which I think will prove very helpful to us in Queensland. The gauge here, 3ft 6in, is the same as we have in Queensland.” Referring to the position of the State railways iia Australia, Mr Smith said that the development of motor transport, both for private purposes and for commercial uses, had deprived the Railway Departments of much remunerative revenue, consequently branch lines which might have been sound enough propositions twenty years ago when they were constructed were in an entirely different category to-day.

Queensland Railways. In Queensland, branch lines were responsible for 77 per dent of the railway deficiency in 1926-27. Railway transport, however, was of such vital importance to the nation as a whole, affecting as it did settlement, facilities for marketing and the general economic welfare of the State, that the position must be reviewed in the light of new developments, said Mr Smith. In dealing with railway finances as disclosed by the working accounts and balance-sheets, it should be remembered that the railway service was only one branch of Government activity, and that immense indirect advantages accrued to the State through the Agricultural Department, the Lands Department, the Mines Department, the Taxation Department, and other Departments, as the result of the railway service. The wealth production of Queensland in the two years ended June, 1926, exceeded the immense sum for the size of the population:—of £150,000,000. In the past ten years it exceeded, in the aggregate, the stupendous sum of £500.000.000. This enormous wealth was made possible largely because of Queensland's railway service, which made production, settlement and marketing possible; the railway deficit was small compared with this huge production. This great result was not shown in the railwav bal-ance-sheet, but it should not be'overlooked.

Natural Assets Developed. This aspect of railwav service, Mr Smith added, was emphasised by the Prime Minister of Australia (Mr Bruce) recently in England, when addressing representatives of the Australian banks in London. lie stated, inter alia:— Australia’s railways, as Government institutions, have enabled development to precede and pave the way for settlement instead of the slow, wasteful, and often socially unfortunate method of allowing settlement to precede development. The railways have proved to be tremendous effective agencies for developing our latent national assets and for opening up avenues for private investment and enterprise, thus making a very great indirect as well as a direct contribution to the national wealth. Ever)'- effort was being made by the Queensland Government to keep railway costs down to the minimum, said Mr Smith, and "the following figures relating to the year ended on June 30. 1927, indicated that from the point of view of management, the position in Queensland’ compared favourably with that existing in other Australian States:— Working Expenses Per Train Mile. s. d. Queensland io 11 New South Wales 10 52 Victoria H 6£ South Australia 16 111 West Australia 9 9$