THE RAILWAYS.

Press, Volume LXIV, Issue 19251, 5 March 1928, Page 8

THE RAILWAYS.

COMPETITION TO BE MET. PRESENT LOSS £1,000,000 A YEAR. (t-RKSS ASSOCIATION TELEGRAM.) DUNEDIN, March 4. Confidence in the ultimate success of the New Zealand railway scheme and its effect on the future of the country iT a whole was expressed by the Prime Minister (Mr J. G. Coates), and the Minister for Railways, at a social to p. West, retiring district traffic manager, yesterday. Tn a suiriml address. Mr Coates said tlm the P country would have to face a heavy expenditure for the next two or three years to place the railways on a thoroughly payable tooting but when once they did become hi inly tablished there would be steady progress and prosperity without any retrogt'™ possible," he told his hearers, •'that within the next live years He Department will be faced with the hardest tight which has, yet fal en to its lot but I am certain of its ultimate success, for already it has :iclu ° v ~ ed singular results. At piesent we • meeting with a keen competition which means a loss of £1.000,000 a year; that is road competition alone. We are not out for a complete monopoly, but we have to be wise to all possibilities and be first on the mark at all times to handle competition, and wo cannot do this unlass we have the equipment to °-ive complete satisfaction. lo the visitor from overseas we must give all the attention that would receive in other countries. We have got to live up to what other people want, and if we can complete the rail system coniointly with other transport systems with which we are linked up, a .great avenue of business and opportunity is open for us." . Mr Coates then expressed his complete confidence that m five or six years, if the present policy is proceeded with, and if the services asked for are completed, the Department will tu placed in a position where it can compete sucessfully with motor traffic, give satisfaction to the Dominion as a whole, and develop the country on lines w.hich make for prosperity and success. , ~,,,1 ij j "It is quite possible, he added, warningly, "that you will lose money for the first few years, but don't let people interfere. Complete your scheme first, although it may involve yon in quite a number of millions, and indeed, it will. The requirements are essential."