Facts to be Studied.

Gisborne Standard and Cook County Gazette, Volume II, Issue 169, 14 July 1888, Page 1

Facts to be Studied.

I The Report of the Committee of the Legislative Council on the increased capital coat of railways opened since 1883 was presented by Mr Waterhouse last week. The report shows that the Minister for Public Works had stated in 1875, on the assurance of experience, that a correct estimate of actual length and cost showed that 991 miles of railway “ fully equipped ” will cost £6,091,981, or £6,200 per mile. This increase of cost on first estimate had, he stated, been caused by “ 104 miles of the railway being of a much more permanent character than had been contemplated” by an “expenditure of £120,000 for fencing beyond the original estimate” ; by the “ very high prices ” required to be paid for land; and by an expenditure of £96,000 for rolling stock ; necessitated by the traffic being “ very greatly in excess of the estimates.” While, however, the Minister, with the knowledge gained by experience and the advanced progress of the works, estimated the cost of those lines “ fully equipped” at £6,200 per mile, the actual cost, in Jspite of a persistent fall in the price of materials, has been £7BOO per mile. In 1882, when 1383 miles of railway were open, the Minister for Public Works declared that in order to “ complete and properly equip ” these open lines so as to provide for the “ unexpected and large increase of traffic, ” and to “ materially facilitate the working of the lines, ” an expenditure of £376,000 was required. To what extent this estimated expenditure has been exceeded cannot be accurately stated, but cannot be less than three times the amount estimated. The report goes on to consider how this vast increase arose and it finds that it is attributable to repairs and reinstatement being charged to capital and effected out of loan, and it specifies the bridge over the Waimakiriri in 1878, where damage only was done to the bridge, which was not washed away, but, under cover of the accident, the line was reconstructed for some miles at a cost of £lO,OOO, and other instances of the same character. But they attribute the chief cause to the laxity of Parliament in allowing the control of expenditure to pass out of its hands into that of the Ministry. A system had been in force of voting money for railways under the oompreheniive heading of " Additions to open lines.” The public regarded the term 11 additions " as implying " extensions," but instead of extensions it went to local works. Thus, out of the vote “ Additions to epen lines," the Wellington station, with the cost of its three removals, was paid. The .Dunedin station, costing about a quarter of a million of money, the Dunedin railway bridge, costing over £30,000, the Auckland station, costing probably over £lOO,OOO, and other important works involving large expenditure were paid for out of similar votes, and were undertaken on the responsibility of Ministers, and without any special authorisation by Parliament. The Dunedin railway bridge has proved utterly useless, and promises to invoh’e a complete loss of its cost. Again, stations were built which were not required ; storage accommodation provided for traffic which was to be, and has not yet been developed: and at Kawakawa an expenditure for cattle trucks and yards, costing £’7oo, was incurred for a cattle traffic which does not exist. The Committee concur in putting the railways under a Commissioner, but add the following:— “ But this measure, which the Committee is happy to bulieve will shortly be adopted, will itseli' fail unless—(l) Parliament resumes -complete control of the expenditure of the moneys appropriated to railway purposes by itself deciding the precise works to be undertaken and withdrawing from the Ministry of the day the power of commencing works the Parliament has not specifically sanctioned. (2.) As railways are equipped aud open to the public the capital account should be closed and only reopened by the express vote of the Legislature. By this means the requirements of growing traffic can readily be provided for and the true financial position of the railways be easily ascertained. Until this course be adapted it will be impossible to tell with accuracy what is the true financial position of our railways.”