THE New Zealand Herald AND DAILY SOUTHERN CROSS. THURSDAY, MAY 15, 1924. THE TAUPO RAILWAY.

New Zealand Herald, Volume LXI, Issue 18709, 15 May 1924, Page 6

THE New Zealand Herald AND DAILY SOUTHERN CROSS. THURSDAY, MAY 15, 1924. THE TAUPO RAILWAY.

Many interests and many diverging views impinge on the question of providing railway access to Taupo and district. The project discussed in Auckland yesterday, that of a line through approximately the district traversed by the Taupo Totara Timber Company's track, is only part of a much broader question. The history of proceedings leading up to yesterday's conference is already reasonably well known. It should be sufficient to recall that the people of that district at one time urged the Government to acquire and operate the company's line. Failing in this, they obtained authority for the formation of a district railway board. It has been empowered to construct a line, or to purchase the company's line or any portion of it. It has also been given the right to levy a royalty of one shilling on every hundred feet of sawn timber produced in the district served. The board desires to purchase 19 miles of the company's track. Its scheme is to construct another line from that point by a route different from that followed by the company. Yesterday's conference concerned itself principally with the projected purchase of 19 miles of line. On the form of payment representatives of the Taupo Totara Timber Company naturally asked for Wetails. It is as important to them as the purchase price. Out of the suggestions made, the most interesting is that advanced in tentative fashion by the chairman of the Railway Board — whether debentures guaranteed by the Government would be acceptable. The reply was affirmative, naturally. This proposition, allowing all the reservations with which it was advanced, merits a little discussion.

There were Government officials present at the conference, and for very good reasons. The Government is interested in several ways. As a timber-owner, it is concerned much as other owners of millable bush in the neighbourhood. When such a scheme is , propounded the Government must see that it is reasonably within the capacity of the district to finance, maintain and operate the line. Finally, there is the much broader problem of adequate communication for the Taupo district, which, it is generally admitted, this line would ■ solve - , only in part. Especially when there is mention of the Government guaranteeing financial arrangements, it must be seriously questioned what other commitments the State may be asked to make in adjoining territory. The Government is already weighing the merits of another line to Taupo by a different route, from Rotorua, through the Waiotapu Valley. The steps taken so far are in no way committal; but as often pointed out, the Government has strong interest in better communications .by this route. Along its course lie millions of acres of potentially valuable land which some day will be developed, as experience has shown it can be. In , the vicinity are Government plantations rapidly approaching the point when they will yield a return for the money spent on them. For these reasons, it is highly important that the Government should not allow its hands to be tied by participation in any one scheme, until it is ready to reach definite conclusions on the broad question of access to Taupo. As a timber-owner, it may benefit—probably will—if the board's scheme is successfully pursued. Yet there is the suggestion that it may be asked to do much more than any other timber-owner, while, at the same time, it carries a weight of responsibility from which the rest are entirely free. The board can make the proposition; there is nothing to hinder. But the Government 'cannot so easily fall in with it.

The very existence of the Railway Board is the result of Government refusal to shoulder financial burdens in the district affected. State purchase of the existing line was strongly urged for a considerable period, and just as resolutely refused. As the people of the district were not satisfied they were given the executive and rating powers now vested in the board. Therefore, if the suggested request for a guarantee to debentures is really pressed, the board will in effect be asking to have it both ways. It is easy to declare that the Government is not being asked to spend any money. True, but the purchase which it may be urged to guarantee is only a part of the financial operations involved in the PutaruruTaupo project. Greater sums will be involved in the future. If the Government takes this one step, arid difficulties are encountered later, what more natural than to have .recourse again to the same source of financial backing? Then the Government, already committed, might not find it easy to refuse. The result in the long run would be to

lead the Government into doing what it has several times, refused to do—assuming responsibility for a line by this route. It is not necessary to infer that such developments are contemplated by those who obviously count a Government guarantee for their debentures as a possibility. The Government itself must look this far ahead, however, and make due allowance for all contingencies when a course of action is suggested. It cannot treat the matter as simple and isolated. It cannot in consistency go the whole length outlined above. Therefore, for safety's sake, it would be well advised to refrain from committing itself in any way. Some day, indeed some day reasonably soon, it must take action toward providing better communications for a district with a future not confined to timber, but including farming and tourist traffic among its certain sources of wealth. All the more reason, then, that the Government should make no premature choice from among the alternatives offering.