NAPIER-GISBORNE LINE

Northern Advocate, 21 July 1933, Page 2

NAPIER-GISBORNE LINE

STATE’S INTERESTS. QUESTION OP TRANSFER. AS PRIVATE- UNDERTAKING. (Special to “Northern Advocate.”) WELLINGTON, Thursday. The abandonment of the working section of the Napier:Gisborne line by the Railway Department after the earthquake, and complete cessation of railway construction when the railway was almost completed to Wairoa, led to an important legislative innovation at the en'd of last session. Under its terms, it is possible for a private company to take over the asset, complete the railway, and conduct it as a private undertaking. Prominent interests in the district have not given up hope of seeing the railway constructed, and there have been active negotiations with the Government on the subject, to decide the terms on which the work can be made available, now that the State has indicated its desire to spend no more capital on the project. A committee of departmental officers, including the chairman of the Railways Board has, it is understood, been directed by Cabinet to consider the conditions under which the Napier-Gisborne railway works may be transferred to outside interests. In effect, they will advise the Government what would be a reasonable capital value to place upon it under the extraordinary circumstances. Then, if the proposals are deemed commercially practicable, it might be possible to interest capital in the venture, and float a company to complete and operate the line, Mr. K. B. Williams, M.P. for Bay of Plenty, and Mr. H. M. Campbell, M.P, for Hawke’s Bay, have been concerned in these negotiations, while the former member for Gisborne, Mr. W. D, Lysnar, has also participated in some of the conferences. The results are not yet known, but iu any case, before the State could part with its interests, further legislation would be needed, when the terms settled for lease or sale would have to be made known to Parliament.

Legislative Phases. The legislation under which such an interesting arrangement could be made, departing from the principle of State ownership of railways in the Dominion, is wide enough in its terms to enable any railway which the Railways Board declines to operate to be submitted to any company incorporated in New Zealand or elsewhere, to lie acquired by such an organisation “by sale, lease or otherwise.” The Government also takes power to lay down conditions for completing any railway works, and the methods of conducting the railway. According to the Public Works Statement, the gross expenditure on the various sections of railway be-

tween Napier and Gisborne totals; nearly ! £3,900,000, of which a section of over 38 miles from Napier northwards, which had been completed, but was damaged by earthquake, cost £2,220,500. Included also in the total is £6.15,000 expended on the WairoaWaikokopu branch, which is in use. Practically all the formation work is completed from the south to Wairoa, and the most important work left on this section is a lofty bridge over the river at Mohaka. All the preliminary work for this bridge has been done, and the steel is on the site. Mr. K. B. Williams, commenting on the legislation when it was passed by the House, declared that it would be useless to ask anybody to take shares in a compajiy, or to finance the work, unless the conditions to be laid down by the Government were known. “It must be a businesslike proposition,” he added. He has followed up the project, and there should be legislation next session indicating the conditions on which capital can be invited totake over expensive assets, now rapidly depreciating.

NO INFORMATION YET. POVERTY BAY GRIEVANCE, INDIGNATION VOICED. (Per Press Association.—Copyright,) GISBORNE, Thursday. Auckland business men appeared to be interested in the possible acquisition by private inter&ds of the GisborneNapier railway. At a meeting of the Gisborne Chamber of Commerce, a. letter was received from the Auckland Chamber of Commerce asking for infer motion as to the progress of negotiations in this direction. It was decided to reply that no information was available.

Later in the meeting, Mr C. Blooro referred to the injustice done to the Poverty Bay district through the Government’s failure to provide rail access. He referred to promises he said had been made by the Rt, Hon. .1. 6. Coates that the local line would be the first major work proceeded with, yet such projects as the Wellington railway station and the Dunedin post office, which, he continued, would not yield a penny extra, revenue, were being embarked on. Poverty Bay was up against a deadlock, as the Railways Board was completely antagonistic to the line. Finally, it. was decided to ask the Mayor to call an indignation meeting of Gisborne citizens simultaneously with the meetings at Wairoa and Napier.