GOVERNMENTS POLICY.

New Zealand Herald, Volume LXVI, Issue 20263, 24 May 1929, Page 12

GOVERNMENTS POLICY.

(MAKING RAILWAYS PAY.

ABOLISHING SHORT LINES.

ADJUSTMENT OF TAXATION. CLOSER SETTLEMENT OF LAND. [BY TELEGRAPH. —PRESS ASSOCIATION.] MOTUEKA, Thursday. 'At a banquet given in his honour at Motueka this evening the Prime Minister, Sir Joseph Ward, said ho could see the advantage the district would possess in being attached to the Main Trunk railway system of the South Island. It was idlo to build up a system of short-distance railways, for short-distance railways had in the past proved themselves absolutely useless in serving the country. They had drained the life blood of the main systems. Last year £498.000 had to bo paid out of ordinary revenue to meet the sliorlage on the working of the railways system. Short-distanco railways were weakening the whole system. The time had come for the Government to attack the present system of railway finance and to submit to Parliament some system for doing away with short sections and making the main systems pay interest on the money invested iu them. Other Problems to be Faced. People living m districts where there were short-distance lines would have to be educated to understand that the lines could uofc compete with motor transport. That was one of the problems that would engage the attention of the next Parhaineut.

There wero other problems, too. They could not have a deficit of £579,000, as there was last year, without doing something to make it up. They would havo to go into tho question of this shortage, and ho was sure it could be put right satisfactorily, but not without an adjustment of taxation. They must deal with the problem as ordinary, sensible men in charge of the affairs of the country.

The Government would have to examine the whole position carefully and eliminate those taxes bearing unduly on some sections of the community. It would have to look around to discover what sections .were not bearing a fair share. They would have to take every member of Parliament, no matter of what political opinion, into their confidence, and put the finances of the country on a sound basis. Giving a brief outline of the policy of the Government, Sir Joseph said it consisted, first of all, of obtaining money in quantities and letting it out at a cheap rate to workers and settlers. He was very glad to be able to tell those present that at present, in the advances to settlers and advances to workers' funds, the Government had, since assuming office, cleared off all the arrears, and there was a substantial sum available for advances. All that those who wanted mon.ey had to do was to send in their valuations. If the valuation was right the money was there for this purpose. There was plenty of money in the coffers and there need be no pinching. Encouraging Settlement. Dealing with the Government's land policy the Prime Minister said his party believed in obtaining land and finding people willing to go on it. There were some parts of New Zealand where land was held in large areas by individuals and it was the opinion of the Government that some of that land should bo shared. !A' fair price would be given to the owner and the land cut up. The speaker pointed out that to-day there were 15,C00 fewer men on the land in New Zealand than there were 10 or 15 years ago and that y/as a serious matter. The backbone of the country was land settlement and the amount of the exports sent out each year. Land must be provided to let other men and women get on it and add to the value of the country's exports. Extra people must be induced to go on the land and make the balance right between the country and the towns. The Government. intended to buy land and take part of the large areas. Prevention of Aggregation. Briefly its policy was: (1) To prevent aggregation of landed estates; (2) to cut up the land it was going to purchase and induce people to go on it; and (3) to make cheap money available. The Government was engaged at present in acquiring land, and with that end in view the Minister of Lands had been touring New Zealand from one end to the other to see what land was available Eight or ten settlements had been acquired, and they would add materially to the number of people on the land and to exports. Reverting to railways, Sir Joseph Ward reiterated the Government's intention to complete main lines, including the South Island Main Trunk and t}ie Nelson-West Coast line, saying he felt sure the South Island Main Trunk would bo a payable proposition.