N.Z. RAILWAYS.

Wairarapa Daily Times, Volume LXV, Issue 11788, 26 September 1913, Page 2

N.Z. RAILWAYS.

HIGH WORKING EXPENSES.

INCREASED OUTLAY EXPLAINED

In the course of 'the Railways Statement presented to the House on Wednesday, the Minister (Hon. W. Hemes) says:— ■'■ . .

"During the year, I have made investigations into the causes that are responsible* for the percentage of working expenses to earnings being so high, and find that the' factors which in the main conduce to bring about the position aro increased wages and shortening the hours of the staff, increasing train services by running trains for experimental development, many of which are unremunerative, openings of new sections of railway in undeveloped country where business is necessarily very restricted and unprofitable, additional staff, necessitated by the expansion and interlocking and safety appliances, which has resulted' in a large proportion of what were unattended flag stations being converted into tablet stations, many of which are doublemanned on account of long hours. The more extended hours trains are now running on the Main Trunk systems also necessitates increased staff. The rates paid for fuel, stores, and materials of every description' used by the Railway Department have advanced in sympathy with the improvement that has taken place in working conditions and wages in foreign countries and foreign and local industries. "My research into this aspect of the railway question has revealed the fact that New Zealand is by no means singular in respect to the advance of percentage of operating expenses to earnings. Every large railway system shows the same upward tendency following on the general advance of wages and shortening of the hours of staff, the increase in price of coal and other materials, more lavish train services without increasing the tariff to bring in additional revenue to correspond with the advance in expenditure. A Comparison. A comparison of the percentage of working expenses in the railways of other Australian States, as shown in Table 15, if compared with the similar table of last year, will show that the working expenses of all Ox these railways have increased with the exception of Tasmania, and iv most cases the increases have been greater than those in New Zealand. New South Wales, ior instance, increased from 61.09 in 1911 to CA.23 in 1912, and the latest report of the Commissioner gives the percentage as 68.82 in 1913. In other countries the same conditions occur, and the New Zealand percentage, though higher than I would like to see it, is not higher than those obtaining in other parts of the world. In the Canadian railways, for instance, the percentage for 1912 for 68.7, and in the United States railways 69.93, as against New Zealand's 68.13. No Cause For Misgiving. The running of trains iv excess of the immediate requirements for the purpose of developing the country aud inducing settlement, thus creating a traific that Avill ultimately be remunerative, is sound in principle as a business proposition. So long, therefore, as the close scrutiny that has in the past been kept on this and all other items of railway expenditure continues I am satisfied the • best results will follow, and an advance in the rates of expenditure to earnings need be no cause for misgiving in so far as railway operations are concerned.