NEW RAILWAYS CONSTRUCTION

Greymouth Evening Star, 10 September 1931, Page 5

NEW RAILWAYS CONSTRUCTION

BOARD’S DRASTIC REPORT A GENERAL STOPPAGE [per press association.] WELLINGTON, September 10. The immediate cessation of work on the South Island Main Trunk, NapierGisborne line, and the Kawatiri-Inan-gahua line, is recommended in the report of the Railways Board, presented to the House of Representatives, this afternoon by the Minister of Railways. The Board also reviewed the lines on which construction was stopped in December last, and recommends that the Westport-Inangahua, Waiotira-Dar-gaville, and Okaihau-Rangiahua lines be not proceeded with. Reviewing the South Island Main Trunk line, the Board considered that no advantage in the time factor regarding the transport of goods would accrue in view of the present sea service from Lyttelton; also the cost of haulage would he greater than by sea. The Board considered that even with the train and ferry the costs would not be in favour of tho rail route. Its conclusion regarding the possibility of substantial development of the line for stock traffic from Marlborough, was that the traffic was not at all like-

ly to be heavy. Regarding passenger business, it did not appear to the Board that there' would be any advantage for the railway against the sea, in

the way of comfort and speed. Advantage in cost, would certainly be with the present sea route. The Board stated that it reviewed the Clifford Bay proposal, and considered in view of the expenditure involved, it would not. be warranted, and would afford no justification for the completion of the railway. “The conclusion of the Board is that the completion of the railway line is not justified and work thereon should be stopped. The Board has reached this conclusion with careful regard to its obligations in its administration of the N.Z. railway system and has not overlooked the question of service to the public and the industrial development of-the country. If the Board could have found in 1 the course of -its examination of the problem, that the immediate deficiency in operating results mgiht within time not too remote, have been converted into more favourable results through the development of trade and industry, it would have been well disposed to recommend the completion of the line. The Board had, however, been compelled to conclude that neither the immediate, nor the remote prospect is sufficiently encouraging to justify the expenditure that would be involved.’*

Dealing with the Napier-Gisborne line the Board expressed the opinion that the total capital cost would be £4,927,505. The estimated annual loss, if the line is completed, would be £195,037. It was estimated that to complete the Kawatiri-Inangahua Tine would cost £1,597,000. The Board was not impressed with the prospects of goods traffic, because of the long .haulage making traffic relatively expensive to work by reason of its being a one way business. The coal traffic to Nelson did not call for the construction of the railway, and the developmental scope of the line was limited. The Board’s estimate of expenditure to complete the Westport-Inangahua line, is £450,000, total -cost being£37,s77 a mile. The increase in passenger traffic was problematical, and the Board was of opinion that the great bulk of passenger traffic between Westport and Greymouth -would continue to go by road route. Concerning goods traffic the indications were that the coal traffic would be largely confined to screened coal for stations in Canterbury. Other classes of coal from the present mines were not likely to be diverted to the railway to any substantial extent. Live stock traffic would be limited, and*’ it was difficult to forecast to what extent the general merchandise now coming to Westport by sea would be diverted to the railway. The Board was of opinion that if the line returned any net revenue at all on operating, the amount would fall far short of the interest charges. In dealing with the Walotira-Darga-ville line, the Board was of opinion that' the high cost of construction was out of all proportion to ' the traffic possibilities of the district. In condemning the Okaihau-Rangia-

hua line, the Board saw no reason for concluding that the extension of the line would deerfease the operating loss and on the other hand, the burden of interest charges would be very substantially increased.