NEW RAILWAYS

Evening Star, Issue 20587, 12 September 1930, Page 2

NEW RAILWAYS

PARLIAMENTARY INQUIRY EXTENSIVE ORDER OF REFERENCE [FkOM OCR PARLIAMRNTA.RT ERPOBTR*.] WELLINGTON, Septombber 11. The Acting Prime Minister gave notice in the ' House of Representatives to-day to set up a special committee to consider the recently circulated statement giving the estimated cost of completing the various railway extensions now under construction, and the probable financial results of their operation. The subjects set down for investigation arc numerous, and led to prompt suggestion trom the Leader of the Opposition, who added some points of inquiry himself that it would be impossible adequately to deal with during the session. However, the committee is to at least make an attempt to report to the House before the session is over. The proposed committee will consist of Messrs T E* F. Healy, E. J. Howard, J. T Hogan, D. Jones, F. Lye, C. E. Macmillan, F. Waite, W. J. Jordan, the Minister of Railways (the Hon. W. A. Veitch), and the Minister of Public Work (the Hon. W. B. Taverner). The representation is: Government, four members; Reform, three; Labour, two; Independent, one. The committee will hi instructed to inquire into the following questions:— 1. Land settlement and probable development in districts which would be served by a continuation of such railways. 2. Estimation of benefit and convenience to general public. 3. The effect on the finances of the Railways Department. 4. Provision for interest and operating charges in the' case of railways where the revenue is estimated to be insufficient.

5. The relative cost and utility of rail and road transport of—(a) primary products to ports; (b) distribution of Imports ; (c) between centres of population; (d) over the gaps between uncompleted sections of lines, having regard to cost of transhipments at existing railheads; (c) for developmental purposes. 0 The problem of harbour development with relation to the long-distance transport of bulky freights such as timber, grain, and coal. etc. 7. The extent to which their completion will induce additional traffic on existing lines. 8. Unemployment relief. WIDENING THE SCOPE.

The Hon J. G. Coates stated that ho had seen the order of reference beforehand but he did not think it covered the whole situation. In his opinion, the first item on the list should be that of the relative cost and utility of rail and road transport, while the question of land settlement and developmental aspect should be put down on tho list. Ho would like the Government to include in the inquiry the ultimate financial effects on the country if the construction of tho lines dealt with in tho summary is carried out, and the wisdom of expending borrowed money at the present high rate of jntyrest, having regard to the suitability ol modern road transport to meet tho economic requirements The last point, continued Mr Coates, was tho real question for decision, but it was possible, under tho original ordei of reference, that the committee might side-step that question. It was not at. tho moment a question whether the developmental aspect would mean £200,000 a year advantage to the country, because the real question was the financial capacity of the country to carry this burden of construction, when it was passing through* a period of financial difficulty The problem was linked up inseparably with the question of whether road transport would in most instances meet the economic requirements. These were questions which the country would like to see discussed and decided. Mr H. E. Holland (Leader of the Labour Party) asked if tho Acting Prime Minister thought the committee could report adequately on all the questions set down for its attention before the House completed the session? Mr Ransom replied that the Government was- anxious to have the fullest information, and in the Order of Reference it hae endeavoured to make tho inquiry ns wide as possible. It did not wish to restrict the committee. The Hon; Downio Stewart: Are you including the question of non-political control? . . .

“That is more a question affecting the working railways,” replied tho Acting Prime Ministep, who added that if it was found impossible to report by the end of the session, he would consider whether there should be a recess inquiry by tho committee. He was sorry ho had .not been able to set up the committee earlier,' Mr Holland: You don’t expect the House to sit til) tho end of tho year? The Acting Prime Minister; “ 1 realise that to go thoroughly into the matter thev could sit all tho year round.” The Leadoi of tho Opposition: Would you consider giving the committee power to order any investigations which might bo deemed necessary? The Acting Prime Minister: 1 would bo quite satisfied to do that.