The Guardian (And Evening Star, with which it incorporated the West Coast Times.) SATURDAY, JUNE 18, 1938. RAILWAY FINANCE.

Hokitika Guardian, 18 June 1938, Page 4

The Guardian (And Evening Star, with which it incorporated the West Coast Times.) SATURDAY, JUNE 18, 1938. RAILWAY FINANCE.

“The wonder to me is that they ever tried to get over the hill at all with a railway,” said the Prime Minister, referring to the Rimutaka tunnel work. “There is more to be ’ done than to make figures to show whether the railways are paying or not. You have to take into consideration the areas to be tapped and the development of the country through which the railway passes. They can say what they like about the railway system, but if a. proper balance sheet were made, crediting the railways with the values for which they are directly responsible, there would be sufficient revenue to pay for the railways two or three times over. Instead of that, people bought and sold land, and they got rich; and it was almost painted on the clouds that the railways were not paying,” The foregoing remarks by the Rt. lion, M. J. Savage are heartening, for his view-point may be applied to other

railway works of a prospective character. In particular there is the extension of the railway south—from Ross to Wataroa, as a first stage. The Prime Minister takes areas to he tapped into consideration, and in South Westland there is a great tract of country—largely Crown-owned land. Not only is that the case, but it is studded with valuable forest, from which again the Government will draw revenue in royalties. The penetration of the railway will better the country’s estate in value, as against the land-owners who are not numerous, and it can be said are not holding tile land for speculative purposes. The appearance of the railway will give an added value to the land served (chiefly Crown land), and result certainly in a greater output of timber on which royalty will bo payable—also to the Crown. The finance to be derived from the construction of the line will benefit the general revenue account greatly, and according to Mr Savage’s dictum must be considered in studying a proper balance sheet of the possibilities of the undertaking. Rut there is more in it than that. The settlement" factor in a growing district will mean an increasing freight to the line. The stock to be produced .and marketed will create added wealth, which the railway will help to produce. The convenience of the railway for prompt export of timber will mean more economical working for the forest, both in regard to the greater utilisation of the tree, and in the subsidiary material sent out for use in various branches of woodwork. The forests owned by the Crown will show a greater profit, and that extra, will contribute to the justification for the line in no small way. South Westland his been termed the Taranaki of the South, and that means with the gradual clearing of the forest, more land will be brought into profit. The south still labours under the stigma of isolation it has endured for more than seventy years. A railway moving south would in itself indicate to prospective settlers that there was now no question of isolation. All other settled parts of New Zealand and particularly on the East Coast of this Island, have their railway system to serve greater production. This West Coast is served but meagrely with rail communication, and none at all serving the vast stands of timber-lands in the south. The lack of justice to the district in rail communication should appeal to the members of the Cabinet, who in many parts are showing practical attention to railway works. Here there is an undertaking which lias so much to commend it from both the national and district point of view that to overlook it will, be an injustice difficult to explain by other than a failure to realise the true worth of a work of such outstanding importance and future importance, also, as time goes on.