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AUSTRALIAN.
TRANSPORT
PROBLEMS
Iii Australia • - transport
has a mucli greater effect
on costs of-production and
economic welfare than It
has In most other coan
Slnce the: war the trans
port industry- has-. been
operating under steeply ris
ing cost conditions. One of
the heaviest burdens has
been, the high proportion, ot
obsolete equipment. The cost
of maintenance of this ob
solete stock has prevented
sufficient investment -in new.
equipment and retarded long
term plans for improvements.
These are some of the
points made by the Bank ol
New South Wales in a survey
of problems in Australian
transport published in the
Bank’s quarterly Review. . .
“Freight rates must . be
stabilised- and, if possible, .rc
duced if Australian produc
tion is to remain competi
tive." says the Bank.
"Our transoort problems
spring from the huge area
and extensive coastline to be
serviced and the relative
scarcity of population and
industries outside a few
widely dlsoersed major
centres. Many transport
routes are utilised mainly on
an uneconomical seasonal
■■ “The long-standing, rail
way .freight- rating system In
which lower rates on primary
produce nre subsidised by
higher rates on manufac
tured goods has discouraged
the spread of settlement and
industrial development In in
land areas. At the same time
the absence or Inadequacy ot
transport has stunted the
productive potential -of large
In 1051/52 capital invest-:
ment oh all forms of trans
port amounted, to almost £400
million or 12 per cent of the
national Income. Yet even
this is insufficient for main
tenance and Inflated-costs to
provide for' future needs.
Over the past few years
improved cool supplies and
easier labour conditions have
permitted more intensive
operation and large capital
expenditure has put-the rail
ways In better shape. In the
last two years 044 - new
diesel-electric locomotives
have been ordered. This Is
about 20 per cent of the
total locomotives in opera
other services do not pre
sent such a rosy picture.
Orders have been placed for
31 ships totalling 215,000 tons
to replace obsolete tonnage
but for various reasons these
might not be adequate.
Expenditure on our roads
m 1051-52 was at the rate of.
£4 per head of population but
by contrast Canada is spend
ing £13 per head.
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