NORTH AND SOUTH: FINANCIAL SEPARATION.

Dominion, Volume 4, Issue 1037, 28 January 1911, Page 3

NORTH AND SOUTH: FINANCIAL SEPARATION.

Sir—As it is now abundantly evident that the North Island of this Dominion never need expect anything like fair and just treatment from tlio southern Ministries which rule, over us, it will be well to consider if some means cannot bo found to free ourselves from their thraldom. 1 thiuk this could, at any rate, be easily accomplished as regards our railways and water power. Why should we not have financial separation between the two islands? This, 1 think, would result in great advantage to both. We might commence with our railways and water power, and gradually extend.

I would suggest tho formation- of a Railway Board for each island. ■ These boards to havo tho control of railway construction and administration, and the appointment of all employees in each island respectively, and to be liable to the general Government for 1 per cent, on tho capital invested. This on March 31, 1010, was, in round numbers, .£13,100,000 in tho North, and X 17,030,000 in the South. These boards to.be responsible to tho Government, as I have said, for i per cent., and to have the. power to levy a special land tax for any amount necessary to bring tho railway revenue in their island up to the said four per cent. This tax not to be' in the nature of what has been known as "betterment" .taxation, but to apply to all the lands in' each island. This would most effectually check the construction of- unnetded railways. Had such a system been in force from tho first we should never have heard of the Otago Central, the Midland, and many more of our not-wanted. and nonpaying lines. I suggest that this railway land tax should not be allowed to interfere with any General Government or local land taxation, but should be in addition to these.

All electric power' or water-power stations in the hands of the General Government to be in the same manner placed under the control of the Railway Boards, and all future stations to be constructed and administered by them. The capital expended on them to bo also charged with i per cent., secured by their revenues and the land tax.

The Ward Government asserts that the social conditions;of tho North and South Islaud of this Dominion are so different that it was necessary to impose very heavy differential rates on all goods and passengers in the North Island. These in 1908 amounted on an average to 2s. 7Jd. on every ton of goods, and to Jd. on every "ordinary passenger" that passed over tho North Island lines'in that-year. Next year (1909) they say they were obliged to raise tho average goods transit charge in tho North another Is. 3d. per ton ,and to reduco it in the South 2Jd. per ton. Tho, northern passenger fare . was raised another IJd. Again, in 1910, they further raised the average goods rate another 9Jd. per ton. They also raised each passenger fare in the North 3!d., whilo in tho South they reduced the charge for goods one farthing per ten, and passenger fares also ono farthing each. ' If tho social conditions of these two islands aTe so very, different that it is necessary to impose differential rates against the North and in favour of the South of 4s. 10Jd. on every ton of goods, no matter what its class or distance hauled, and of 5Jd. on "ordinary passengers" carried, it is clear that they cannot bo advantageously administered from one centre, and the sooner wo deviso some plan of separation tho better for everybody.—l am, etc., SAMUEL VAILE.

Auckland, January 20.