“A LITTLE FEELER”

Evening Star, Issue 22308, 7 April 1936, Page 16

“A LITTLE FEELER”

A METHOD TO FINANCE RAILWAYS [From Oor Parliamentary Reporter.] WELLINGTON, April 6. What ho called “ .lust a little feeler ” was put out by Mr Wright (Independent member for Wellington Suburbs) in the House when he worked out for himself how the Government must be planning financing the NapierGisborne railway. Three millions had been lost, he said, and it would take another one and a-half millions to complete it. He assumed that it was the idea of the Minister of Finance to issue that amount of paper money or a loan, or whatever ho liked to call it, and the lino would start running without any of the capital cost being debited against it. The revenue and expenditure of tbe branch lino would, he suggested, be kept separate, and whatever'profit was made would be used to redeem the one and a-balf million of notes. Of course, lie was not a financier. Financiers might say it was unsound, but that was his idea of how it was to work.

“ But the only point is,” continued Mr Wright, “ will the lino pay? It must only return operating expenses, and if there was a reasonable profit we would be pretty well back to where wo were. (Laughter.) But if it makes a loss because the farmers prefer to use the road, as being more expeditious or cheaper (as they do in other parts of the Dominion), what will become of tbe note issue? It cannot be redeemed except by taxaton. I don’t know. I am only putting this out as a feeler.” (Laughter from the Government members.)_