SIX TO STOP.

Auckland Star, Volume LXII, Issue 214, 10 September 1931, Page 8

SIX TO STOP.

NEW RAILWAYS.

BOARD'S DECISION:

SOUTH ISLAND LINE

COMPLETION NOT JUSTIFIED.

"NOT A REMOTE PROSPECT." - (By- Telegraph.—Parliamentary Reporter.). WELLINGTON, this day. Drastic recommendations-for the cessation of railway lines under . construction are contained in the inaugural report of the Railways Board; presented, to the House of Representatives by the Hon. W.'A.' Veitch this afternoon. ' •••; The board considers the. completion of the South Island Main" Trunk railway is hot justified, and; recommends that the work on : it be stopped. ' ' The board holds also that construction of , the following; lines is.: not justified ? . r. . / ■ Waiotira : —DargaVtlle. Okaihau —Rangiahua • . . Kawatlri—lnangahua. ; We'stport—lnahgahua.... !. r ' Napier-r-Gisborne- ■ The board's report deals with the' proposed new railway linesj the lines on which construction is suspended, and the lines in course of construction. Consideration was given to the sections mentioned above, and the .lines were inspected to enable the board to ascertain the physical features of the routes, the prospective value of the new sections to < the open railway, system* and, finally and fundamentally, in relation to all the works,' whether they could be justified on the grounds; of sound and Stable financs, having, regard to the development of tie country, the cost of; construction, and the 1 financial costs.of..operating them.' ;... ■' ' • Wharanui—ParnasßUs. The . Wharanui—Parnassus section, which completes the South Island Main Trunk, is dealt with first, and the board, supplies details showing the cost to. March 31 last was £415,239, and esti;) mating - at £2,341,761 the amount required to complete the section; The total capital cost-Of the under taking is estimated *at £2,757,000, the average; cost per mile being £36,276. : ? ; ' '•■'/ Actual .experience - ' of South Island, lines shows that during the ; last six years 'the grbss ? .revenue per; mile aveiv aged annually '£26-71, j while the ratio of operating to.; revenue has averaged 89 per cent.- 'The total present annual cost on the operation of the Picton—Wtitfrairui 1 and J Parnassus— Christchu'rch lines is given at £73,187. The estimated increase in -the . ahhnal loss oh the ilino-from - Pictop to "iphristchurch, If ' completed, .is - shown as £99,753. Regarding the Clifford Bay terminus, the board was advised by the engineer-in-chief that it would involve an additional cost of £1,000,000. "Finally," states the board, "our conclusion is that the "completion of the railway between Wharanui and Parnassus is not justified, and that work thereon shoiild be' stopped. The board reached' this conclusion with careful regard to its-obligations in the administration, of the railway system, and it has not; overlooked questions -of • service to the public and . the industrial' development of the. country,-. If the board could have found that the; immediate deficiency ini operating rekults might .within a time not too: remote have been converted into* a more favourable result, through the development: of trade and industry, it would have .been well' disposed to' recommend completion of the line. The board has," however. been compelled to conclude that neither the immediate nor s the remoter prospect is sufficiently encouraging to justify the expenditure." Waiotira-Dargaville. Dealing with the Waiotira-Dargaville line, the board says the total amount expended to July 31 last was £1,507,709, leaving £46,000 required for completion. The problem is whether the completion of the Tangowahine-Dargaville section is justified, having regard to the transport requirements of the district and the financial results from the operation of the Waiotira-Donnelly's Crossing line if the work is completed and the whole line taken over by the railways. The board considers the transport requirements of the area are being met to a large extent by vessels operating on the extensive waterways -of tlfb Kaipara Harbour and the Wairoa River, which secure a large i proportion of both the goods and the passenger traffic. Road transport provides an easy means of .short-haul transport to and from the waterways, and motor services secure a considerable volume of the passenger parcels traffic to and from Auckland. It is held that tho transport requirements are met by this combination of services, and are not dependent on .the completion of the railway. The volume of passenger business that would be secured by railway would fall far short of what is required to meet the high cost of construction and working of the line. The position regarding the goods traffic is much the same. If the Tango-wahine-Dargaville line were completed, the Department would incur . interest charges amounting to £26,000, increased to £71,000 on the total capital cost of the line, from Waiotira to Dargaville. Having regard to the present and prospective factors, the board is convinced that the surplus on operating reBults, necessary to meet such a high yearly charge, would not be forthcoming, but the result would be an annual operating loss. Both sections at present show an annual operating loss, and the completion of the construction to Dargaville would hot improve the position. The board finds the completion of the Waio-tira-Dargaville lino unjustified.

Okaihau-Rangiahua. Discussing the Okaihau-Rangiahua eeetion, the cost of completing which is £60,000, the board considers the factors previously mentioned apply in this case, and the railway rates offer no substantial advantage over the present shipping and road transport. The board is impressed with the development of the North Auckland districts in recent years, but does not consider this would be reflected proportionately in railway revenue. The financial position of this branch is considered extremely unsatisfactory, and the board holds that the extension to Rangiahua would, not decrease the operating loss,? but the burden of interest charges would be substantially Completion, therefore, is unjustified. i , "

Napier-Gisborne. .Discussing tha Napier-Gisborne line, the -board anticipates keen competition by road and sea, and expresses the Opinion that the extension is not relied upon to fnrnish any substantial revenue to the railway. The total cost .of . the Napier-Wairoa section will be approximately £25516,158. The board ;is of the. opinion that the line, if ; completed, would not earn sufficient revenue to pay operating expenses, -much less return any.,contribution towards interest, .on this large sum: It estimates the cost of completion of the Waikokopu-Gis-borna. section at £1,186,180. ~, ■ , The board is of the opinion that, notwithstanding the productivity of the Poverty Bay district, the business likely to be secured by the railway is unlikely to give a commensurate return for the Cost, ,of 'the line. "The board is definitely of the opiniipn that the construction of the, Napier-Gisborne line is not justified, and that the work where it is now proceeding should be stopped." .Inangahua tines, ;, The board states .that the KawatiriInangaliua line Would cost £i,597,000 to complete; and holds ! that ; the 'probable returns ate insufficient to - justify its construction. ' :. i - : The Westport-Inangahua line would cost £450,000 to complete.: Tlie board' cannot see, any great possibilities, and considers' there is no justification -'for the construction. . . : j .The six. ririlways covered by the report involve construction costs which, with. equipment, would total substantially; more than • £6,000,000. s As none of the lines 'investigated could be eon-, struct ed and operated without substantially increasing the burden on the national finances,;the board; considers its duty., is clear.' - , - . ■> -...- ' j Approval 'of Parliament. 1 . : The adverse report on any. line does hot necessarily mean its abandonment as the statutory authority to' the board, under which it makes its recommendations, states that these must be laid (before. Parliament, and if both Houses pass a resolution, approving the recommendation of the boaid no further work in connection w}th construction of such a railway shall, thereafter be carried out save in accprdance —with the recommendation. of the board. ;