RAILWAY DEVIATION.

Auckland Star, Volume LX, Issue 90, 17 April 1929, Page 11

RAILWAY DEVIATION.

WHf IT WAS STOPPED.

ADDITION All REASONS. -FINANCIALLY DISASTROUS." The Government decision to suspend the Palmerston North railway deviation work was based., according to the Prime Minister on the following facts, additional to those given in the "Star"'

yesterday : — "It is found," said Sir Joseph in the course of his statement, "that the working costs of the railway yard and the station on the new site will be approxiniaetly 50 par cent, higher than on the present line. This is the result of careful calculation and compilation of detailed figures by the general manager of railways and his officers. The general manager informed the Government that he holds a strong view that the removal of railway stations to a distance from business centres reacts very unfavourably against railway business as regards competitive modes of transport.

"The main difficulty in the railways to-day arises from the necessity to transport between business places and railway stations, and as the distance of this transport increases so does the disadvantage to the railway* also increase.

"In 1921 Mr. .7. P. Maxwell, who had had nine wars' experience as general manager of railways, five years' as commissioner of Kail ways, and five years' railway experience in England, before coming to New Zealand, said in his evidence before a Commission whicii was set np to inquire into and report respecting the facilities for the conduct of railway business at Palinercton North: — 1 tliink that to divert tlie railway, to expend £700,000 on making a new station is the height of extravagance. 1 do not think there is any reason in it, especially in these times, when everything in the way of economy is so important. £70(1.00(1 for one station! It is "terrible! "The circumstances as they have developed appear to full justify the opinion then expressed by Mr. Maxwell. Disadvantages to Town. '"The alteration now being made cuts off all railway connection as at present with the racing club from the main line of railways, and places the agricultural show grounds at a greater distance from the station than at present. It also affects the industrial area north of the post office where some concerns having an extensive business with the railways have their private railway sidings connected with the main line. They would, under the rearrangement, be some two miles from the railway centre, and would be involved in additional expen#> for shunting charges—probably not less than -I per truck. This may not. to people not familiar with it. seem a la rye amount, but it is a matter which requires to be considered by the Railway Department when it becomes an added charge to the railage their business clients arc called upon to pay. The idea that the deviation is going to totally eliminate the level crossings at Palmerston North is | quite erroneous, because I feel satisfied | that the line serving these industries I would still require to remain with its level crossings and lines running across | the streets into private sidings. It would unquestionably eliminate the traffic over streets in the Square, but the railway track required for industrial purposes would of necessity remain and would require to be worked by shunting engines from the new site.

No Prospective Extra Revenues. '"The general manager of railways advises the (ioverninent that he can see no prospect whatever of an extra revenue being earned as a result of the carrying out of the deviat ion now under const ruction. and therefore it is certain that both the interest and sinking fund upon the lowest amount that it is estimated these works will cost, must be taken nito consideration to get tne true position and to ascertain the loss that the country would sustain if the works were completed.

"The foregoing will give a general idea of the position as it has olliciallv presented itself to the <Joverninciit. In view of the unsatisfactory nature of it from a financial point of view, it is only fair —and, indeed, necessary —to ask where the country would stand if tne (Joverninent were to shirk iis responsibility and go on with the knowledge of the facts that are before them and spend the balance, making .a total of £72~>,000 in all. The debt repayment term on account of interest and sinking fund covers a period, under the present system for repaying loans, of •">•"> years. I propose to calculate the loss of interest upon the £T2.").000 over a period of .10 years —lit'tle more than half the term mat the Act now provides for the repayment of loans. This is giving nearly a f>o per cent reduction of interest upon the £72.">.1)00. and to calculate the interest and sinking fund at the rate of five and a-half per cent it would amount to ft loss (including interest for only 30 years, not for o"> years as the Sinking Fund Act now provides! at £1.19ti,200. As the railway department states that the loss of working the new yard as against the old yard is £SOOO a year, even by reducing the period for repayment (if loans by half, the result financially would be' one that could legitimated lie termed disastrous.

"The forego in,sr." tiie Prime 'Minister in conclusion, "giveis a clear out line of the views of the <Jovernment in connection with this important matter. 1 have not stressed or exaggerated the position in any way, but have endeavoured without ca-ting reflections upon anvone to show the reasons for arriving at the decision which the Government feel to be their clear and unmistakable duty to give effect to in tne general interests of the people of the country.