The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. THURSDAY, OCTOBER 17, 1929. RAILWAY POLICY.

Auckland Star, Volume LX, Issue 246, 17 October 1929, Page 6

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

THURSDAY, OCTOBER 17, 1929. RAILWAY POLICY.

for the cause that looks assistance, For the wrong that needs resistanoe, For the future in the distance, And the good that vx can do.

The debate on the Railways Statement produced some unusually interesting speeches. Mr. Downio Stewart argued the case for requiring lines to pay reasonable interest; Mr. Coates discussed the further commercialisation of the service and drew attention to the risks involved in fresh construction; the Leader of the Labour Party contended that railways should be placed on the same footing as roads and regarded as a utility service; and the Minister wound up the debate by saying that the system was passing through a period of transition, and that adjustments would have to be made before they could speak of the railways paying. j

When a country is young and undeveloped, the consideration of development must weigh heavily with a Government in its railway policy. If railways were never built unless there was an assurance that they would pay from the outset, few would be built. A Government is entitled to say that a railway is justified because it will open up country and will eventually return a profit. It is, however, nearly sixty years since Vogel introduced his great railway programme, and conditions are very different now from what they were then. A great deal of developmental work has been done. Good roads have been built alongside railways, and the motor has proved itself a formidable competitor. Mr. Downie Stewart does not contend that lines should pay from their inception, but he does say that some standard should be set, and he argues that if development is to be the only aim, then the taxpayer has no protection. This last is an answer to Mr. Holland's declaration in favour of service and not profit. To adopt such a policy would be to throw commercial prudence to the winds and do away with all checks on extravagance. The ideal of profit sets up some sort of a barrier , against waste. Nor is the analogy of the roads as good as Mr. Holland thinks. For one thing, the country now imposes special taxation for their upkeep.

The Minister's contribution to the debate showed that, as was expected, he is bringing business principles to bear on his task, but as a statement of policy it was vague. The truth is that he is in an unenviable position. He has taken over the Department most thickly beset with difficulties, and he is fooling his way. Success or failure will be determined largely by construction policy, which is why so many people are dubious about the Government's programme of new lines. The forthcoming Public Works Statement will therefore be exceptionally important.