NOW IN THIRD PLACE

Dominion, Volume 26, Issue 10, 6 October 1932, Page 8

NOW IN THIRD PLACE

Expenditure on Railways EFFECT OF NEW CONTROL As a result of the policy adopted recently, capital expenditure on new railways has been reduced considerably, and the extent of the cut was disclosed by the Prime Minister, Rt. Hon. G. W. Forbes, in his Budget speech in the House on Tuesday. “It has been the experience in recent years for the expenditure on railways to constitute the major item in public works expenditure, but on this occasion it will be seen that the expenditure is relegated to third place," Mr. Forbes said. “The average capital expenditure on railways during the previous three years amounted to £3,218,000, whereas last year the expenditure was only £1,021,000. This substantial reduction is due not only to the factors to which I have already drawn attention, but to the policy adopted by the Government in 1931, when the railways were placed definitely upon a commercial basis under the control of a non-poli-tical board. “Of the total expenditure on railways last year of £1,021,000, £643,000 was in respect of new construction works, and the balance on improvements and additions to lines already open. The new construction expenditure was incurred mainly on the Stratford to Main Trunk connection, which is now the only new line on which operations are proceeding actively. The provision which it is proposed to make in this year’s estimates will be sufficient to complete the work. “The expenditure of £377,000 on improvements and additions to existing lines was mainly in connection with the purchase of additional rollingstock and also on the Tawa Flat deviation near Wellington.”