EMPLOYMENT ASPECT.

Auckland Star, Volume LXII, Issue 215, 11 September 1931, Page 9

EMPLOYMENT ASPECT.

"CONFUSING THE ISSUE."

NEW LINES NOT PRODUCTIVE.

FURTHER FINANCIAL LOSS.

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. The view that further railway construction offers a suitable means of utilising relief labour in reproductive channels is not subscribed to by the Railwav Board, which, in its inaugural report to Parliament the main recommendatione of which were published in last night's "Star," insists that the completion of a line which will not return sufficient to-meet operating expenses is aim ply creating a recurring liability. The board considers that, unless a line shows a definite prospect of returning at least a reasonable amount of net revenue as a contribution towards interest charges, the expenditure of any further moneys for its completion would not be justified. "References have been made," adds the report, "to the adverse effect on employment that would result if no further construction on these railways were undertaken. While the board fully appreciates the seriousness of the unemployment position, it feek strongly that the question before it is one of railways policy, and that the vital issues involved therein should not be confused by reference to the unemployment problem,, .whidi has J been the subject of special legislation I and which is under the care of the Un- \ employment Board. Since the board has i concluded that completion of ; the lines cannot be justified on the basis of sound railways finance and policy, it is impossible to justify such completion merely on the grounds that it would create employment or ease the present unemployment problem. To do so would'."be to confuse the real issue and place the national unemployment problem in a wrong perspective. "Public opinion is turning towards the desirability of utilising the unemployment fund in more productive works, and this has no doubt prompted the suggestion made in some quarters that further .railway construction on the lines under consideration offers a suitable means of utilising relief labour in productive channels. The board is unable to concur with this view, since it has reached the conclusion that further expenditure on these railways would not create a productive asset, but would, in fact, 'involve the Dominion in further financial obligations and recurring annual losses."