"STOPPED FOR EVER."

Auckland Star, Volume LX, Issue 134, 8 June 1929, Page 12

"STOPPED FOR EVER."

ROTORUA-TAUPO LINE.

fifTUMEN ROAD INSTEAD.

GOVERNMENT'S PROPOSAL.

FRANK STATEMENT BY PREMIER.

(By Telegraph.—"Star" Special Reporter.)

ROTORUA, this clay.

Applause broke spontaneously among the big audience in the Majestic Theatre last night when Sir Joseph Ward said he had been firm in his resolve to visit Rotorua, despite the heavy pressure of his public duties, in order to defend the Government's policy in stopping the Rotorua-Taupo railway. He preferred, he said, to make any statement in defence of that decision when face to face ■with!'the Rotorua people, rather than to inake it elsewhere. (Applause.) Sir Joseph said the citizen of Rotorua should realise that no Government would, lightly entertain a condition entailing hardship on a" considerable section.of the country without giving its decision mature consideration. He assured his audience that it was. only after thorough investigation and consideration that .the Government had to stop the Rotorua-Taupo railway —and to stop it for ever. (Applause and laughter.) In the first place it was a line of railway that ought never to have been started, Rotorua was the centre of New Zealand's greatest tourist traffic. What would the people of Rotorua think of an Administration which spent money to provide a railway which would divert tourist traffic to another place in the same vicinity ? Such an action would not be appreciated, Sir Joseph thought. (Applause.) Interested parties had a right to advocate the building of a line, but there was no reason why the Government should shirk its responsibilities ■when it was convinced that the line was not warranted.

Commission's Report Quoted. The Rotorua-Taupo Railway Royal Commission of 1922 considered that there "was under present or probable conditions no likelihood of the railway earning enough to pay interest and working expenses. The Commission estimated that of the area of land which would be served by the proposed railway the quantity suitable for settlement was very limited. Mr. H. Munro, an officer of the Agricultural Department, who was one of the commissioners, disagreed with the Commission's statement relating to the probable traffic, and commented as follows:—"I disagree with the statement contained in the last sentence of the reply to this question. I am still of the opinion that the main purpose of an extension of the'Tailway from Waiotapu to Taupo would be to serve the indigenous forests which would provide traffic for a period of fifteen to twenty years, after which this section of line would either have to be abandoned or operated at a heavy loss. lam convinced that an increase of traffle in the fifteen to twenty years which would be Required to cut out the indigenous forests would not be anything like sufficient to make good the loss of traffic which would result from the exhaustion of such forests. I am, signing the report subject to my signature beingSccepted with the above reservations, and conditional on a copy of this memorandum , either being attached to the report or otherwise forwarded to thetMin'ister with the report." ■-;;-."'. Convincing Figures.

Sir Joseph said the estimated cost of constructing the railway (taken from the-commission's report in 1922) was £700;000, exclusive of additional rolling stock,; which would cost a further £50,000. With present day costs, the estimate had since been increased to approximately £800,000. The expenditure on :the construction of the line to March 31, 1929, amounted to £35,809. The length of the proposed line was about 54J miles. The commission estimated an Annual revenue at £61,492 and working!! expenses at £52,547, leaving a balance of about £9000 towards interest charges, which they estimated at £30,000, assuming an interest rate of 4 percent on the total capital cost of £75.0,000. It would be noted that the, capital cost had "been increased and the rate of interest was also higher, so that the interest charges would be £40,000, making the deficit still larger. The Motor's Competition.

Since the commission made its report, Sir- Joseph said,..!motor transport had made great strides throughout the Dominion, and it was competing successfully with the railways in many parts of the country. The late Mr. Massey, when replying to a deputation which waited uponr'him in 1923, urging the building of the Rotorua-Taupo railway, made reference to the growth of motor haulage, and pointed out that a matter for very serious consideration was whether it would not be better to privide a good motor road than to build a railway. Very substantial improvements had been and were being made on the main highway through the Rotorua district. There were many reasons for forming a conclusion that the position would' 'be amply met by further road improvement. It was therefore proposed to construct a bitumen highway from Rotorua to Taupo.

One Train a Week. Sir Joseph said it seemed improbable that a railway between Eotorua and Taupo would have w&rranted more than one train a fortnight, or, at the outside, one train a week. (Laughter and applause). As it was necessary, the Government had stopped it, because it believed tho money should be- saved wherever possible. Those who advocated the line had stated the Government could rely upon the growth of trees, which would mature in fifteen years to provide the railway, with freights. But what was tiie Government to rely upon within the intervening 15 years? Was it seriousy suggested that people would stop using motor cars in travelling from Rotorua to Taupo? He thought the Government's decision would be applauded by all thinking people, and therefore he would leave the abandoned railway to take care of itself (Applause). How it ever came to be started he did not know.