Kaimai Line Estimates Queried

Press, Volume CIII, Issue 30602, 19 November 1964, Page 11

Kaimai Line Estimates Queried

fPaTliamentary Reporter) WELLINGTON, November 17. Most recent cost estimates put the bill for the Kaimai rail deviation at £5,717,000, the Minister of Railways (Mr McAlpine) told Parliament tonight. He said he expected it to be completed by 1970-71 and to be returning to the Railways Department a net increase in revenue of some £200,000 yearly within the first few years. He was speaking on the Finance Bill (No. 2) which authorises construction of the rail link. The deputy-Leader of the Opposition (Mr Watt) contended that costs, put at only £5 million on Railways Department and Ministry of Works’ advice in 1963, were probably still under-estimated. With tunnelling costs at £1 million a mile, less than £500,000 would be left for miles of track land purchase,

compensation. stations, bridges and signalling. He also attacked the Minister of Finance (Mr Lake) who introduced the bill. “He gave too little information on a measure which, he said, was for a new line of about 15 miles, he understood, running, he understood, betweep a place he couldn’t pronounce and another he had never heard of.” “When I introduced a bill in 1960 to authorise the Nelson railway—a separate bill, not a clause slipped into a finance bill,” said Mr Watt, “I was even asked by the present Minister of Railways how many sleepers would be required. Now I ask him how many sleepers will the Kaimai railway need?”

Mr McAlpine: As a matter of fact, for 15| miles of line, 27,280 sleepers. Mr S. A. Whitehead (Opp., Nelson): Well, how many dog spikes? Mr McAlpine: If the member wants to know, 109,120. “The cost has gone Up £700,000 in 12 months,” said Mr Watt. “I am certain it is still under-estimated.”

Mr McAlpine rejoined that track renewals on the circuitous coastal route to be replaced would, in the next 10 years, have cost £1,991,000 and grade easements to im-

prove load factors for increased traffic would have cost £1,300,000, cutting the net cost of the Kaimai scheme by £3,291,000. Allowing for interest charges and the capital cost of extra rolling stock, it had been estimated that the new line would return the Railways Department a net increase of £35,000 in 1970, £58,000 in 1971, £69,000 in

1972 and £187,000 in 1982. This represented a considerable improvement in railways’ finances, but was based on earlier traffic estimates, already outstripped by actual traffic increases. In freight charges alone, the line would save the Tasman Pulp and Paper Company £35,500 yearly, N.Z. Forest Products £36,000. and Whakatane Board Mills £23,000.