The Dominion TUESDAY, JANUARY 29, 1924. SPECIAL DEVELOPMENT LOANS

Dominion, Volume 18, Issue 105, 29 January 1924, Page 6

The Dominion TUESDAY, JANUARY 29, 1924. SPECIAL DEVELOPMENT LOANS

An important proposal endorsed by the Empire Economic Confer once had reference to special loans to be spent in expediting approved development works in the countries of the overseas Empire. An essential feature of the proposal was that the British Government should pay a part of the interest during a period of five years on the cost of works undertaken by the borrowing Dominion or colony in advance of its normal programme of development. A scheme of this nature evidently offers advantages both to Great Britain and to other Empire countries. One effect of the financial •co-operation contemplated would be to increase the volume of orders in Britain for railway material and other manufactured goods used in development works. An appreciable contribution would thus be made to the relief of unemployment, and ths assistance of British industry. At the same time, production and settlement in the overseas countries would be stimulated, and in the Dominions, particularly an increased scope would be opened for the reception of immigrants from Gle if The British Labour Government carries out its declared intention of submitting the resolutions of the Imperial and Economic to a free vote of Parliament, this special loan proposal, with some others, should be reasonably assured of ratification. It is ?^a in keeping with the policy of the British Unionists and Liberals that Imperial credit should be utilised m this way in furthering Empire development, and the proposal does not appear to be m any way repugnant to the proclaimed views of the Labour Party. „ This being so, it is desirable that clear ideas should be formed hero and in other Empire countries with regard to the class of work on which any special loan that may presently be available would be expended most profitably, and with the greatest all-round advantage. It has been suggested tentatively that New Zealand might accept the assistance of the British Government jn raising a special loan with which to complete a big hydro-electric scheme (Arapuni has been mentioned in this connection) in a much shorter time than the work would otherwise occupy. There is a good deal io be said, however, for the alternative of applying a loan of this kind to expediting the completion of a trunk transport undertaking-either a good main road or a railway. The East Coast Main Trunk railway possibly might be regarded as a suitable work on which to concentrate expenditure with a view to securing earlier results and returns than are meantime in prospect. At the date of the last Public Works Statement a sum of close on two millions sterling had been expended on those sections of the line (about three hundred miles in all) on which some work is proceeding, lhe estimated cost of completing these sections is £4,758,000. - Particulars of the estimated cost of-completing the whole railwaysome sections, as yet, are only explored or surveyed—are not at present available. Obviously, however, great benefits would follow if the rate of construction were appreciably expedited. Apart from the effect in opening up additional country for close settlement and facilitating a corresponding increase of production, there would be an important saving in hastening the day of payable returns on a capital investment much of which otherwise will yield small returns or none at all for a very long time to come. The selection of an actual work or works on which to concentrate the expenditure of any special loan that may be made available under the scheme formulated by the Economic Conference is, of course, a matter for careful consideration. At a broad view, however, trunk transport facilities appear to have an unrivalled claim where expenditure of this kind is in question. Hvdro-elcctric power is of great present and potential value, to farmers as well as to town-dwellers. Its increasing use will do a great deal to facilitate the expansion of primary and secondary industry . and production. Facilities for transport are, however, in a deeper sense the key to national progress and development. Probably it would not be difficult to demonstrate that well-directed expenditure on the construction or improvement to modern standards of main roads and trunk railways will do more than an equal expenditure on any other form of development work to promote and further closer settlement and production. , . . Full account ought to be taken of these considerations in deciding upon the utilisation of any special loan that man become available in the conditions proposed by the Economic Conference.