N.Z. RAILWAYS.

Waikato Times, Volume 109, Issue 18256, 18 February 1931, Page 3

N.Z. RAILWAYS.

REFORM PROPOSALS. REPORT OF THE COMMISSION. QUESTION AND ANSWER. The report of the Commission set tip to inquire into the possibilities of increasing the revenue and decreasing the expenditure of the New Zealand railways runs into no fewer than seventy foolscap pages of print. It takes the shape of questions and answers, the questions being put formally by His Excellency the GovernorGeneral, in exercise of the powers conferred upon him by the Commission Inquiry Act, and the answers being supplied by the Commission after close examination and inquiry. The report, on account of its length and its necessary detail, has not been widely read, and it may be helpful to those who should be acquainted with its contents to quote afresh the questions put to the Commission and to indicate briefly the Commission’s replies. Efficiency Prejudiced. Questions and replies may be abbreviated as follows: — 1. Is the general organisation of the Railways Department such as to produce the maximum of economy and efficiency in administration? — The General Manager is respond.hie to the Minister of Railways, but his powers in regard to administration and the appointment, promotion and discipline of staff are greatly restricted. This has a far reaching and prejudicial effect on the efficiency o'f the Department, and also ~ on the financial results obtained. 1. Is the scale of passenger fares such as to produce the best results?— It is not thought that any decrease in the existing fares would appreciably improve the short-distance passenger traffic, but a slight _ increase might be made in ordinary fares, which would affect individual passengers to a very • small extend. (Estimated increase £45,000 per annum.) B. Is the issue of concession tickets at the present rates and on the present conditions warranted or should it be modiiied or changed?—A slight Increase in the present concession rates would not cause any loss of traffic and would also materially increase the revenue. (It is estimated that the increased revenue from the alteration would be £22,000). Rates on Goods. 4. Is the goods tariff such as to produce the best results?—So .far as the goods traffic is concerned, Hie only action to be taken in assisting to balance the finances of the Department is by raising the rates and ■conditions of carriage on the lower rated commodities. (Estimated total .increase by this means £61,000 per annum). B. Are the existing arrangements for ■the carriage of parcels and goods the best that can be made?—Owing to the better service given by motor transport, there has been a decrease in parcels and small lots of goods delivered by rail. . . The Gornmission does not favour the establishment, of special departmental motor services. 6. Is the existing .arrangement with the Post Office for the carriage of mails equitable?—The figures show that during the last few years this traffic has appreciably increased, and that the time has arrived when payment should be made for this service. 7. Are the (net returns from the various subsidiary services maintained by the Department, such as the Lake Wakatipu steamers, refreshment rooms, advertising and so forth, satisfactory?—The Commission shows practically the whole of these undertakings to be drains on the finances of the Dominion.

Regulations Should Be Overhauled. 8. Is the existing staff establishment such as to ensure a satisfactory standard of economy and efficiency? The Commission’s report recommends that the whole staff regulations should be very thoroughly overhauled, with a view to effecting economies in expenditure, and that the staff establishment in ail its branches should be subject to the closest scrutiny. fi. Are the maintenance costs of the permanent way works and signals down to a minimum consistent with the maintenance of safety and efficiency?—The cost of maintenance on main lines cannot be materially reduced. When the works now in hand on additions and open lines are completed a considerable reduction of staff should be possible. 10. reserve fund should be set aside from revenue each year 10 cover depreciation and renewal?— The Commission is satisfied, after fully considering the schedules of assets and the rates of depreciation allowed that proper provision is now being made. 11. Is the present arrangement for the maintenance of combined railway and road bridges equitable?—The Commission is satisfied that the existing arrangement (made in 190-1) is not equitable to the railways.

State of Rolling Stock

J2. Is the rolling stock being economically maintained at a proper standard of safety and efficiency?—The Commission is of opinion that greater economy should be allained in the maintenance of the rolling stock without reducing the standard of safely and efficiency. 13. Is the maximum of benefit being obtained from the new workshops erected in the four main centres?- — The Commission is of opinion this is not so. The volume of work passing through the shops is not nearly sufficient to keep the bands employed. 14. Are the locomotive transport costs down to a minimum? —The Commission is of opinion that considerable economy could he effected in this direction without impairing elliriency or safety. 15. Arc the existing arran c eme=.is for the purchase, distribution and control of railway stores economical?— The regulations governing the purchase of stores arc satisfactory, but the issue of stores is cumbersome, causing unnecessary waste of time with a resultant loss of ellicieney. 10. Are the traffic transportation cosls down lo a minimum consistent with the maintenance of a proper slandard of safely and efficiency?—The Commission is of opinion that traffic trsnsporlafion costs arc now down to a minimum. Rail and Road Traffic. 17 Would the abandonment of working (either Avhoily or in part.) ol’-any portion or portions of the railway system he justified?—The Commis"’sion was impressed by the evidence submitted, particularly in the South Island, by the sincere desire of the (Continued in next column.)

people in districts to prevent the abandonment of lines. 18. To what extent is it possible and desirable, in the interests of the economic welfare of the Dominion, to co-ordinate rail and road transport?—The Commission is of opinion ■that under existing conditions it is not possible to co-ordinate rail and road transport, unless the full control and operation of all such transport is vested in one authority. The wnoie matter is one which requires a large amount of careful study and investigation, which, in the time at its disposal, the Commission is unable to give. The Commission is of opinion, however, that it is essential that motor traffic, particularly that engaged in freight services, be licensed, regulated and controlled by a properly constituted authority, which would require to take all factors into consideration before licenses were granted. Elimination of Political Control. 19. The Commission is directed generally to review the administration ■and financial position of the Railways Department and to recommend what, if any, steps might be taken to secure a proper balance of economy, efficiency and satisfactory service? —Summary 'of reply: The Minister of Railways has vested in him the control .of the Department, and not only directs the general policy but takes an active part in the management. The construction of new lines of railways is decided by the policy of the Legislature. It. has been definitely stated in evidence before the Commission that the financial operations of the Department anti the general efficiency of the staff is adversely affected by the present method of administration. Substantial saving could have been effected by a reduction of staff, but these reductions were not made by reason of the fact that they were not sanctioned by the Minister. With the Government of'the country engaged in the administration and management of the railways it is not possible lo achieve the best results, in practically every oilier country in the world it lias been shown that the best result is not obtained through an intimate control as between the management and the Government. The position in the Dominion calls for drastic and immediate action and the transfer of the management to persons not subject to political influence. The Commission recommends that legislation be enacted lo provide for the appointment by the Governor-Gen-eral in Council of a Board of Directors, and that this Board be given full and complete control over all | operations of the Department.