RAILWAY BOARD

Wanganui Chronicle, Volume 73, Issue 429, 21 November 1930, Page 10

RAILWAY BOARD

INDEPENDENT CONTROL

SIR O- NIEMEYER’S -VIEWS “The railway question in New Zealand is a very important one and can land you into a good deal of trouble and considerable losses if things go wrong,” said Sir Otto Niemeyer, financial adviser to the Bank of England in an interview at Auckland. “I believe that under modern conditions railways can only pay if they are extraordinarily efficiently managed,” he added. “Of course, I do not make any aspersions on the New Zealand Railway Department, or anything of the kind- Obviously, however, what might be efficient in railways might not necessarily suit certain political views or localities.” Independent Board It would be worth while to consider whether the State, while retaining ownership, should not place the management of the railways definitely in the hands of an independent board, and having, perhaps, a whole-time chairman and directors who were nonofficials. These would be appointed for a period of years and given complete control of every aspect of the railways except borrowing, which might have to remain with the State. “Fanning Out” Management “I think it might be worth while considering whether such a scheme should apply in the same manner as was adopted by a great, many States in Europe, which before the war had ordinary State railways,” said Sir Otto. He quoted Germany, Belgium and Austria as examples, and went on to say that there was a general tendency, where the State was carrying out considerable commercial activities of more than a purely routine kind, for the State, while retaining control as against private monopoly, to farm these out from the, point of view of management,: the management including sueii things as rates and decisions concerning new construction. “One of the best instances of this was broadcasting in England. It would have been quite possible for broadcasting to be left in the hands of private enterprise, but it was put in the hands of a corporation of five or six independent people, who were nominated for a period of years by the Stale- It was rather interesting that the constitution of the concern which had operated for four years had resulted from a report of a committee, one of tae loading, members of which was Mr William Graham, who is now President, of the Board of Trade in the Labour Government. Example in Victoria “From the administrative point of view, which interests me particularly.” said Sir Otto. “ there seems to be quite a movement in a great many countries towards the view that the old-fashioned State administrative department is not quite fitted to carry out every State quasi-commercial undertaking. If these undertakings are to be rug by the State some new form of administrative organ has to be found for them —that is, upon a philosophical basis-” An example nearer home quoted by Sir Otto was that of the State Electricity Commission in Victoria, where the management is controlled by a commission, which has the fullest powers, except borrowing, which comes under the Government’s general borrowing programme. “It is a rather interesting instance of what I have been saying.” said Sir Otto. Sir Otto said he was interested to learn that the Royal Commission which investigated railways in New’ Zealand had reported in favour of management bv a board of directors.