RAILWAY LOSSES

Evening Post, Volume CIX, Issue 139, 16 June 1930, Page 10

RAILWAY LOSSES

SERIOUS POSITION

PROBLEM FOR PARLIAMENT

(By Telegraph.) (Special to "The Evening Post.") NEW PLYMOUTH, This Day. Tlio position regarding railways is such.that Parliament must before long seriously consider the whole situation, declared Mr. C. A. Wilkinson, M.P., on Saturday night, in an address to the olectors of Egmont. The speaker severely criticised the railway programme, and expressed tho hopo that the Commission just constituted would inquire- into the vital, matter of construction policy. About 00 millions sterling, all borrowed, was at present invested in the railways, said Mr. Wilkinson; and that great public undertaking was causing immense concern. On top of that, tho country was committed to spend a further 15 millions. There was undoubted need for the Commission to inquire into the construction policy. The Railways were asked to pay only 4 per cent, intorest, while loan money cost up to 5S per cent. Then there was no depreciation account, and there- never had been. In desperation the Keform Government had dismissed the Railway Board and appointed Mr. H. H. Sterling at a salary of £3500 and £.2000 superannuation. The losses still continued, greater than ever, and still the country built more lines. , THE SOUTHERN MAIN TRUNK. Strangely enough, in Mr*Wilkinson's view, the "United Government, had scrapped the Taupo-Rotorua line and the Palmerston North deviation; yet, in spite of all opposition it had commenced tho Pjuth Island Main Trunk. Mr. Wilkinson had opposed that, and had also strongly urged an inquiry before its commencement, for not v shred of evidence existed that there was justification for the line. In 1915 the estimate had been. '£2,500,000, but there- had been no estimates since the ray-Casey report had absolutely condemned the line, and no railwayman of standing in New Zealand would justify its construction. Many months after . tho protests, said Mr. Wilkinson, the United Government had only just 'set up a Commission to investigate. While the Prime Minister had indicated that the Commission would inquire regarding the working of the railways, the Public Works Department had stated that tho Commission would inquire also into the construction policy. Previous estimates by the Public Works Department on railway costs in», 1923 had been increased by £2,088,000, said Mr. Wilkinson, while 168 miles, of short lines built in six 1 years had been estimated to cost ■ £2,000,000 less than tho actual cost. ;' Almost every estimate of costs had been greatly exceeded. Almost every ['■line under construction in New Zealand to-day would not stand a- searching investigation. PRIVATE ENTERPRISE UNRECOGNISED. i Ho could only hope that the present i Commission would do good work, and that useful information would be avail- ■ able. Private enterprise was hardly i valued sufficiently. It had brought ' down freights and rendered great seri vice to the community, and was taxed '. directly very heavily. In Mr. "Wilkin- , son's opinion, it was useless for any ' Government to attempt to monopolise ] road transportation, for private services would always bo cheaper and [ more useful, and above all competitors. ; Last session tho Government had [ written off eight million pounds in ; Railway capital costs,, which : . meant that the general community, would, be asked to pay the interest instead of '. the Railway Department. That writing off did not improve the taxpayers' position by a single- farthing. , In conclusion, he said he. considered the position such_that Parliament must soon seriously consider tho whole situation. • " .