STATEMENT BY MINISTER

Nelson Evening Mail, Volume LVI, 3 October 1924, Page 5

STATEMENT BY MINISTER

• WELLINGTON, This Day When presenting his development report to the House yesterday afternoon the Minister of Railways (Hon. J. G. Coates) stated that the report had not

been pl'OjyAred id any waV for the British Commission, which was arriving here on 9th inst. from Australia. The Commission would he asked to comment, upon the proposals, of couvSe. No doubt the pyoposolsi, which he raid had been prepared before the Cornmisison was appuiilted, would receive a good deal of consideration by the Commission, which might make suggestions and advise the Government generally as to Whether what was proposed WfiS in the best intcrcsts of the railway system. The report had been prepared with due regard to the Country’s finances and the cbuhtf.ji’s ability to- meet expenditure that was necessary for the bulk of New Zealand. Ail of the Works proposed had been arrived at after statistical investigation had been made, as to their effect. None of thbfii showed that less return than 8 per befit would he made, and in SOifie, cases they amounted to 3.7 pfir befit oh the inbney invested-. Iff other words, the test of merit h&d been applied in nearly every t-a'se.

The General Manager, in his fep'ort tins year, stated that at lehst £13,000,000 would be required for railway improvement. Thft Government had considered tho.b, but considered that the limit to which it could reasonably go-without increasing borrowing to any extent , was £8,081,500. Some of the works included in.the r.eport were those nfecttittitteilded by Mr Hi ley in 1914, but Which the war had made it impossible to carry out. Since I§l4, the passengers carried showed all increase of 5,000,000 and the additional tonnage of goods vvas 1,000,000. Over 200 miles of heW railway had been opened for traffic since 1914. In the opinion of Mr Hiley, the difficulties in 1914 had an adverse effect’on the earning power of the railways/ One could readily imagine wliat- the position inufet be today on account of the increase ill business. He anticipated that by 1931, an additional 427 miles of line would be opened, Which Would mean, further pressure oh the termini.

The Minister, added that £40,000,000 of capital weri invested in the railways and it was imperative that the railways should be put in a position to earn interest on outlay. Extra cost in. handling to-day made it almost impossible to pay a satisfactoiy rate of interest. He believed if the proposals to bring the rolling stock up to date and to reduce the overhead expense on non payable lines, /were approved, "that satisfactory interest would be made. Thirty-five new locomotives of the A. B. type had been ordered in England and it was absolutely necessary to have them. The shops in New Zealand would be kept at high pressure. If they were to be expected to run railways and pay interest charges, they must make some attempt to bring their marshalling yards and station equipment up to date. There should be some economical means ot handling the country’s produce and trade. Attention had been directed to essentials more than anything else.

Included in the . new , works are the following:—Auckland-Westfield duplication, £450,000; Auckland, new yard, £550,000; Wellington, new yard, £l,075,000; . Woolston marshalling-yard, Ohris'tchurch-Lyttelton works, and Lyttelton double-line .tunnel £515,000; New Lynn duplication £616,000;’ Rimutaka deviation, £1,000,000; ’ elimination *of level crossings, £200,000; Locomotive Branch Departments, workshops and equipment, £460,000.