An exploration into the economics of some branch line closures in New Zealand

Abstract

Royal Commissions have a habit of appearing in New Zealand in times of crisis or near-crisis. The background to the 1952 Royal Commission on Railways was one of crisis in Railway affairs. This was attributable to the rundown condition of the Railways emerging from the Second World War, the rapid fall-off in traffic especially on branch lines as wartime restrictions on road transport movements were lifted, and the 1951 industrial disputes, coal shortages, lack of staff, and suspension of some services. The reason for the Government resorting to a Royal Commission was probably more for public relations purposes than for objective advice. Thus the Minister of Railways, W.S. Gordon, in introducing the Commission's Report to Parliament stated that "it was obvious to me that so much had to be done that unless there was ample publicity, and an understanding of the position on the part of the public, it would be impossible to accomplish what was needed. So I asked the Government for a Royal Commission to investigate the Railways." N.Z.P.D. Vol. 297, p. 623. For a more general examination of the use of Royal Commissions etc. in the New Zealand transport sphere see McLeod, N.L. 'The Politics of Transport in New Zealand', Unpublished M.A. thesis, Victoria University of Wellington, 1966. The Commission's terms of reference was to enquire into and report on "all aspects of the New Zealand Government Railways, their future development, and sphere of operations." Preamble to 'The Report of the Royal Commission to Inquire Into and Report upon the New Zealand Government Railways', D-3, A.J.H.R. 1952, pp. 1-2. In particular the Commission was to report on the adequacy and efficiency of the Railway's labour and capital resources, the Railways rating system, rail competition with other transport modes, and lastly, the position of the branch lines.