NAPIER-GISBORNE RAILWAY

Greymouth Evening Star, 15 August 1933, Page 3

NAPIER-GISBORNE RAILWAY

THE GOVERNMENT'S TERMS. [FEB PBESS ASSOCIATION.] WELLINGTON. August 1-1. Conditions under which the Government are prepared lo Im nd over the land and the permanent works in connection with the uncompleted East Coast. Railway Line, between Napier ami Gisborne, if a. company could be formed to undertake the completion of part, or tin 1 whole of it, ami its running, have been supplied to Mr. 11. M. Campbell. M.P. for Hawke’s Ray, and Mr. K. S. Williams, M.P. for the Ray of Plenty. In the communications which they received from the Acting-Prime Minister, it. is pointed out. by Mr. Coates that tire decision of Parliament with reference to the abandonment of the lino precludes the Government from incurring further financial responsibility. He states it is estimated that £1,800,000 will be required to pay salvage value on the route, complete the line, equip it with suitable rolling stock, and provide for adequate maintenance and for any losses likely to be incurred in the conduct of the line lor a period of years from its opening. In the event, of a company being formed, states Mr. Coates, the Government. prefers that, the shareholders should be resident in the district through which the line, passes. If these and other stipulations are complied with, the Government, is prepared to recommend to Parliament, approval of the handing over of the line or a section of it, upon a number of specifications. These provide for a 21 years’ lease, and also set out the time to be allowed for completion of the various sections, also the profits that the company is allowed to earn on its capital, and other requirements it would be necessary to fulfil. Mr. Coates states that of the £1,800,000 estimated to be required, the Government is of the opinion that at least, one quarter should be found by capital subscribed before the commencement of the work, and that one quarter should be in the form of uncalled capita] in shares held by persons whose credit is sound, and who can transfer them only to like persons. The other half may be raised by loan, but thr> Government must have submitted to it the terms of any prospectus and other application for such loan, which must, make a. full disclosure of the whole of the circumstances under which the construction of the line was abandoned, and is being recommenced. The Government desires to avoid being pul in the position of having crcditors, particularly foreign creditors, coming to it at. a. later date, and staling I hat they had been induced to advance the money necessary lo finance the completion of the line without being fully acquainted with the circumstances under which it had been abandoned ami the construction resumed. DISTRICT COMMITTEE FORMED. WAIROA. August I I. The most prominent, meeting in the history of Wairoa was held, to-day, for the purpose of considering’ a memorandum received from Mr. Coates concerning tin? Napier—Gisborne railway. Those present, included Members of Parliament. Messrs. Williams, Coleman, Barnard and Campbell, and also the Mayors of Hastings, Napier. Wairoa and Gisborne, and two hundred others. ! After a lengthy discussion, it was

unanimously decided t.o set. up a committee (o secure absolute and definite facts and figures to place before the Government, when it is hoped to make the. district’s right to railway facilities unassailable. Financial provision for an investigation is also to be arr:tng< d, ami later the result of the d>. liberations is to bo pl.-med before i m- Govi.rnmeiit, showing the necessity for completing the lino, and also the definite m v.-mte returns available when tin* line is completed. When

satisfactory terms are granted from] the Government. the Committee is to ci range for die necessary finance to] complete the lino.