FINANCE AND RAILWAY POLICY.

Auckland Star, Volume LX, Issue 105, 6 May 1929, Page 6

FINANCE AND RAILWAY POLICY.

In a speech at Hawera on Saturday Sir Joseph Ward made two or three policy statements of first-rate importance. The revenue for the past year, said the Prime Minister, was half a million short of the expenditure, and .there would have to be a "readjustment of i taxation," so as to obtain more money from "certain quarters." The Prime Minister did not say what these quarters were, but one may hazard a guess that the Government intends to obtain more money from the large landowners. This was part of the United Party's election platform, and it is reasonable to suppose that the Government contemplates a more drastic application of the land tax for the double purpose of obtaining more revenue and compelling owners to sub-divide their estates. New Zealand will be disappointed, however, if Sir Joseph's taxation proposals contain no relief for the general public. The Government, says Sir Joseph, is not going to build any more lines that will not pay interest, and apparently it contemplates closing down non-paying branch lines. At least this is an inference from the statement, including the intention to abolish the system of paying the deficits on these lines out of the Consolidated Fund. If the money is not to come from there, how is it to be obtained? The need for drastic action in respect to certain branch lines has been apparent for some years, and further details of the Government's intentions will be awaited with keen interest. Sir Joseph Ward reiterates his opinion that the longer railway, works on his programme will pay their way. It is reasonable to ask him again upon what data this opinion is based. Has the financial side -»f these projects been thoroughly well explored? Have the experts o£ the Railways Department been consulted? Tjio completion of the PictonCanterbury line has a special interest, because there is oil file a Departmental report against it. Messrs. Fay mid Casey considered that it would result in a loss, and that the time taken by train-ferry and train to reach Christchurcn from Wellington would be longer than by the present ferry service. They contemplated a night service, and said that a day service Avas impracticable. Now Sir Joseph Ward .says that more than six hours would be saved by passengers "from the extremities of both islands." This could be achieved only by a day service across the Strait, and the public is entitled 1.0 know, in view of the Fay-Casey report, what data this project is based upon-