EM& ARG0ED AWANS~ T DELIVERY JjAUST?{ L 1'
FOR PRESS SEPTEMBER 24, 1976
TEXT OF ADDRESS BY PRIME MINISTER AT LOCOMOTIVE NAMING AT
CLYDE INDUSTRIES, SOUTH AUSTRALIA
-I regard it as a great honour to have a new locomotive named
after me, particularly as it is the first of. a new class of
locomotives for A. N. R.
The builders are to be congratulated on the latest example
of their craft.
I understand that locomotives have been named after a number of
former Prime Ministers.
I hesitate to ask what has happened to each of them.
I hope that theoGough Whitlamohas not run off the rails somewhere.
i believe that the " Robert Gordon Menzies" is still running well:
indeed that it completed three million miles on 30 June last.
Clyde of course, are no strangers to the manufacture of locomotives.
Clyde started making steam locomotives at Granville, N. S. W. works
in 1907.
They are certainly one of the leaders in diesel electric
locomotives in Australia. They have delivered about seven
hundred of these locomotives to the various Australian systems.
-Their association with general motors electro-motive division has
ensured that they have kept abreast of world technology aud
developments in the field.
The new locomotive has been selected by A. N. R. as the locomotive
best suited to their needs on the Trans Australian Railway.
The diesel electric locomotive was introduced early to the
Australian scene by men of vision who staked reputations on
these machines while the traditional steam locomotive was still
supreme.
Australia now needs men of even greater vision, to meet the
crisis which all the railway systems are currently facing.
The financial situation of Government railway systems has
deteriorated at very fast rates in the last few years. / 2
The combined deficits of Government systems rose from $ 62.7 million
in 1969/ 70 to 40. miion19/ 7. This represents over
for every man, woman and child in Australia and about
for every employed Person. This could be-in the region of
$ 600 million within a year or two.
Clearly no Government can continue to bear losses at present
levels, let alone tolerate rapid escalation which is occurring.
Some drastic action is necessary to bring the situation under
control.
Australia is not unique.
Railway systems throughout the world are faced with similar problems.
But this is no reason why we should just wait for the problem
to be solved elsewhere.
The Commonwealth through its own system, will be meeting a
deficit of $ 60.8 million-in 1976/ 77 but most of this is on the
South Australia region ( 37.4 million) and the Tasmanian Region
( 18.2 million)
One of the principal problems is the relationship between salaries
and wages and total revenue earned. In a number of cases I
understand that the wages and salary bill exceeds revenue.
In these circumstances, minor exercises in cost pruning or improvement,
in efficiency will at best have a marginal effect.
Clearly drastic action is necessary to bring costs of providing
the service below revenue earned.
The railways at present are highly labour intensive.
In the face of challenge from other modes of transport the
railways must be prepared to change their traditional methods if
they are to survive.
This will require active consultation with, and the cooperation of,
unions concerned.
The railways should concentrate-on developing those areas where
they can provide the most economic and viable services.
There is a need for a complete reappraisal of the proper role of
railways in the Australian transport system of the latter quarter
of the century.
Some people seem to think that the railway's ills can all be
overcome by giving them more funds.
In this view, the railways have not been able to compete because
they have not had adequate funds to purchase equipment or make
the improvements needed. And I can certainly understand a
manufacturer such as Clyde wishing there were more funds available
I recognise that there are areas whe-,-c railway performance has
been adversely affected by the lack of funds.
However,' there is a more fundamental malaise and unless this is
overcome other improvements can really only have a marginal effect. / 13
Improvements in the efficiency of the railways may entail the
elimination of some services which are no;-longer effectively
demanded and certainly will mean the introduction of improvements
designed to give the most efficient service.
This involves both technical changes and changes to operational
methods. It will require railway systems to give greater attention to their
management and marketing practices.
In the area of locomotive performance and utilisation, the diesel
locomotive has certainly brought considerable benefits to the
systems.
Almost 3,800 locomotives were required to perform the freight
transport task of 11,900 million tonne kilometres in 1954/ 55.
years later, a fleet of less than 2000 locomotives is used to
perform the freight tas1 k of 29,800 million tonne kilometres, i. e.*
in a 20 year period, the task per locomotive' has multiplied al. most
five-fold.
If similar improvement could be effected in labour productivity,
there would be every reason for confidence.
I have no doubt that the railways will continue as a vital force
contributing to the well-being of the nation. But the present
escalating deficit position cannot continue..
Railway people have shown in the past how they are ready and
willing to rise to a challenge.
I am sure they will in the future.
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