EFFECT ON OAMARU OF CLOSING RAILWAY LINE

Press, Volume XCVIII, Issue 28853, 25 March 1959, Page 22

EFFECT ON OAMARU OF CLOSING RAILWAY LINE

‘The rtess' Special Service

OAMARU, March 24. The resultant closing of* Milligan’s Eclipse Flour Company, Ltd.. Ngapara, putting 11 men out of work, the possible closing of the port of Oamaru, which would affect 45 waterside workers, and the reduction of Ngapara to a “ghost town” were some of the points made by a deputation which met the Minister of Railways (Mr Moohan) to ask for the retention of the 12-mile branch railway line from Weston to Ngapara. Mr Moohan promised the deputation that he would be “quite happy” to look into the matter and see if anything could be done to meet the request. “We don’t want to close anyone down nor cause any injustice,” he said. The matter was vital to the district and to the town of Oamaru and its port, said Mr J. Paterson, chairman of directors of Milligan’s Eclipse Flour Company. He was aware that a large sum of money was required to bring the branch line up to standard, but if road transport had to be relied on it was likely that the mill would have to close. The property would practically be worthless, and 11 men would be thrown out of work. The chairman of the Oamaru Harbour Board (Mr A. McMillan) said he supported Mr Paterson’s plea, first as a citizen who wanted to see industry retained in the district, and second because the Harbour Board was vitally interested in the retention of the line. Anything that upset the Ngapara mill would upset the Harbour Board through loss of business. Since the loss of the shipment of frozen meat from the Port’ of Oamaru, the export of flour, bran and pollard to the North Island, and the landing of bulk wheat from Australia had been the principal items of trade.

In fact, it was only this trade and the additional revenue derived from land rates levied under the authority of a special rating act, now expired, which had enabled the board to finance the operation of the port. Mr McMillan said that as a result of the closing of Messrs Ireland and Company’s flourmill 12 months ago the board .had suffered a serious loss of trade and consequent revenue. It was estimated that the shipment of milling products from that mill and its quota of Australian wheat would amount to 10,000 to 12,000 tons a year, or 20 per cent to 25 per cent, of the total trade of the port. As the revenue from the port before this loss was barely sufficient to provide for ordinary maintenance, including dredging, the board was at present seriously concerned as to how it could operate on the reduced income.

In addition to the loss of export tonnage, the increase in the production of wheat in the dis-

trict would result in little, if any, Australian wheat passing over the wharves.

“It is expected that the loss of the export from Ireland’s mill and of the importation of Autralian wheat will reduce the annual trade of the port from over 50.000 tons to about 35,000 tons,” said Mr McMillan. ‘‘ln the event of the Ngapara mill; closing down, a further loss of approximately 5000 tons of exports of milling products would result.” The total loss of cargo would then be an estimated 20,000 tons, and the gross revenue would be reduced by about £BOOO. As the gross revenue in 1957. when the four flourmills were operating and 19,000 tons of Australian wheat was imported, was £23,000 and for 1958 £20,000, and as this was only sufficient to meet operating expenses, the board was faced with the problem of how it could continue to operate the port with a gross revenue of only about £12,000 to £13,000. As the board took no part tn the handling of cargo, its expenditure would not be reduced, because the same establishment and standard of the wharves and harbour would be required if only half of the present number of ships worked the port. Mr J. H. George, M.P., said he felt that the present position had been brought about by the neglect of the Railways Department over past years in not maintaining the line from year to year. The capital cost of renewing the line was “frightening,” and the Railways Department did not want to take this on.

Mr George said he believed the capital expenditure involved was one of the main reasons for the closing of the line. Concern over the possible closing of the port as a result of the loss of the Ngapara mill trade was expressed by Mr W. Miernicki on behalf of local waterside workers. This would put 45 men out of work, he said.