A RAILWAY MENACE.

New Zealand Herald, Volume XLVI, Issue 14047, 29 April 1909, Page 5

A RAILWAY MENACE.

OTAGO CENTRAL LINE.

SOME OUTSPOKEN STATEMENTS.

[by telegkaph.—press association.]

DuN'Emx, Wednesday. The action of the Government in stopping construction work on the LawrenceRoxburgh railway has, of course, caused great indignation amongst the residents of the districts concerned, and to-day a deputation waited on the Prime Minister (Sir Joseph Ward), and quoted figures in support of their contention that work should be continued.

Mr. .Sidey, M.R., who introduced the deputation, said exception was taken to the application of what seemed to be a new principle, namely, that before a railway was started it must be shown that it would pay 3 per cent, interest. In this case it was possible the capital cost might he lessened by laying down a light line, or by utilising waterpower now running to waste. It was believed the. Minister had not fully taken into account the capabilities of the district. The impression was strong that the line would, in a few years, return a fair revenue on the outlay.

In reply, the Prime Minister said he. had not the slightest hesitation in saying that the Government was not going to be tied down by promises by members of its own, or other Ministers, to carry out works which would injure the country. It was never stated as a principle that all railways at the outset must pay 3 percent. In a young country it was the duty of the Government to help those who were least able to help themselves. In the past he had helped the Otago members to promote the Otago central railway ; he had helped it right through the piece. The matter of the Lawrence-Roxburgh railway had been brought before Cabinet by the Minister for Public Works in a disinterested manner, for the purpose of discussing it in relation to the position that had ark-en in connection with the Otago central railway. It was a joint difficulty in connection with two railways, which caused Cabinet to decide that it was proper and imperative to report to Parliament before going any further. The revenue from the Otago central railway had been going steadily down, and with £1,280,000 of public money spent on it, it was earning: 6s per cent. There was nothing comparable to it, and the railway, with its diminishing results, was menacing the whole of the railways in New Zealand. livery cession for years past a leading member of the Opposition had put on record the falling off of revenue on railways in the Middle Island, and every member of the Government knew that one factor which was causing this was the falling revenue on the Otago Central line. They were faced with this: That these two railway lines were going to result in a 'oss of £50,000 a year. How could they go on professing in one breath that they wanted to have a railway system paying, and in the next urge that they continue to construct railways that were going to burden them with a lots of £50,000 on interest only.

It was not hie- fault, and none of theirs, continued Sir Joseph, that there was no place in New Zealand so cursed as the city of Dunedin had been by political promises, made in the past by people for political purposes, and they were suffering for it. The Government was anxious to help Dunedin in every way possible. They would have to face the position in regard to the Otago Central railway in some form or other before very long, and they could not shut their eyes to the fact that the return of 6s per cent, was so low that, it was £ question of whether the other railways should be penalised to keep that line up. Let the people join together and show that they were sincere, and pay any deficiency on the rate, of interest. I! the people wanted to construct the line themselves, he would give them every facility. The only way to serve Central Otago was by a narrow gauge railway—it could not produce results to pay for a 3ft 6in gauge. He would undertake to have the arguments fully and impartially examined, and he would also undertake to say that the matter would be reconsidered by his colleagues, who would report to Parliament.