TWO SOUTH ISLAND RAILWAYS

Dominion, Volume 29, Issue 228, 23 June 1936, Page 10

TWO SOUTH ISLAND RAILWAYS

Main Trunk and Inangahua IMMEDIATE START ON • COMPLETION vVork For Another 1500 Men MR. SAVAGE ON FINANCIAL J PRINCIPLES The Government's decision to make an immediate start with the completion of the South Island Main Trunk railway and the Westport- . Inangahua railway was announced last evening by the Prime Minister. ;Kt. Hon. M. J. Savage, who stated ..that the preliminary work in connection with both lines would be put in hand within the next few days. The ;t*rime Minister added that these two "works, along with the completion of•the East Coast railway, would be •responsible before long for the fulltime direct employment of over 3000 pien.

‘‘There has been, considerable argument in recent years about the position of the railways in the Rational transport system,” Mr. Savage said ‘•We have come to the conclusion that with regard to transport, and rail transport in particular, it is nece ® , 0 do more than just show a profit in ;1 balance-sheet If we were to wait for profits development would never take 1 “Our view is that the South Island Main Trunk will provide a commonsense connection with Canterbury and with larger markets. As a result .it will mean much to settlers and to the country , generally. It will also courage settlement and settlement is overdue in the area which the railway will serve. “There are still those people who criticise the railways on the grounds of financial losses. If the railways system of New Zealand had been credited with the values which it has been responsible for creating there would be a different story to tell. Motor transport s. rvices have .the roads provided for them. It is true that they contribute through taxation toward the upkeep of the roads, but the roads are there for t'r.dm. The railways system has to provide its own roads and its own upkeep?’ Focal Point of Public Works. The three railway construction works, Mr. Savage continued, formed in?some respects the focal point of the Government’s immediate public works policy, and the Minister of Public Works Hon. R. Semple, would be kept going the best’part of 24 hours daily to get the two new works under way. ’ In I he Prime Minister’s opinion the South Island lines should never have been stopped, but it appeared that, importance had been attached to political considerations rather than the respective merits of different forms of transport.

7 “The report furnished, to the Government by the Railways Department regarding the two lines was distinctly favourable,” Mr. Savage said. On the figures produced there may be just a small debit balance shown in the working of each line, but the prepared balance-sheet produced for our consideration naturally does not take into account the increase in values which will result directly from the completion of the lines. The Government is satisfied that it is embarking on a sound proposition.” '

Tire work on the two lines would be pushed on with all possible speed, the Prime Minister continued, and it was estimated that the South Island Main Triink alone would provide employment for approximately 1000 men. More than 500 workmen were likely to l.e. employed on the Westport-Inanga-hua line when construction was in full swing, and with approximately 1500 in rejfular employment on the East Coast Hire, railway construction would absorb probably over 3000 men under reasonable conditions and at decently remunerative rates of pay. In keeping with previous pronouncements on the subject, the men would be required to measure up to a recognised standard of-efficiency, and they would be supplied with the most modern implements for their work. piscussing the financial aspect of the situation, Mr. Savage said the Government would make all arrangements to hate the necessary money available.

u “There is no end to the money in

New Zealand,” he said, "so long as there are national assets to show for the expenditure. If we create wealth for the people of this country there will always be money available.”