FUTURE OF RAILWAYS.

New Zealand Herald, Volume LXVII, Issue 20668, 13 September 1930, Page 13

FUTURE OF RAILWAYS.

INQUIRY INTO NEW LINES.

CRITICISM.OF COMMITTEE

LACK OF TIME ALLEGED,

FEAR OF SHELVING EXPRESSED

[BY TEI.EGfI AMI. —SPECIAL HKPOnTF.It.] WELLINGTON', Friday.

The futility of the Government's plan to appoint a Select Committee to consider virtually all phases of railway construction policy and to report to the House before the session ends in a few weeks was u strong point made by the Reform Partv in the llouso of Representatives to-day, when the motion for the setting up of the committee was debated. If was slated that the order of reference was sufficiently comprehensive to keep the committee fully occupied for several months. It was further urged that the questions to bo referred to the committee could be much better investigated by a •i committee of business men. Scvcial speakers were apprehensive lest the Government was setting up the committee with the object of shelving tho construction policy until next session, and one suggestion was made that if the committee were unable to report by the end of the session, Parliament should be reassembled a little later to avoid the possibility of expenditure on unprofitable lines for a further period of 12 months. The acting-Prime Minister, the Hon. E. A. Ransom, in reply, said the committee could make an interim report before tho end of the session, and the matter could then be further considered. A great deal of information would bo available to the committee immediately so that there need be no delay in getting down to business.

Two More Clauses Added,

In moving tho motion, of which he gave notice yesterday, Mr. Ransom was granted permission to add two further clauses to the order of reference. These were, firstly, that the committee should inquire into the financial effect if the construction of such lines was carried out; and, secondly, the wisdom of expending borrowed money on such work at the present rate of interest, having regard to the availability of other modes of transport to meet economic requirements. "In the event of tho committee finding it has insufficient time or that some information is not available, will it have power to direct the making o' an investigation ?" asked the Leader of the Opposition, the Right. Hon. J. G. Coates. Ho also stated that a difference of opinion might arise as to figures of estimated costs, estimated revenue, developmental value, and so on. It would seem advisable that the committee should have power to investigate such matters. Mr. Ransom said he did not think it advisable at the present stage to make such provision, but if the committee found such powers were necessary it could report back to the House, and the matter could then be reconsidered.

The Leader of the Labour Party, Mr. 11. E. Holland, said he thought the clause in the order of reference in connection with the problem of harbour development with relation to the long distance transport of bulky freights would unduly restrict the investigation. If the clause remained, it would mean no investigation could be made into coal freights over the Inangahua-Westport section. He suggested the words "long distance" should be omitted. "Work for 12 Months."

Mr. Ransom said he was prepared to adopt the suggestion. Criticism of the order of reference was made by Mr. A. M. Samuel (ReformThames). " This committee has an order of reference which, if properly investigated, would occupy the committee for 12 months," he said. " Why the necessity for this committee ? Surely it is a question of policy. If the committee reports after a fortnight, where will wo pet then 1 Whatever report is brought in will be futile. The only way to bring the railways to a proper financial and economic basis is to set up a board and let the board run the railways without political control, and then wo will get down to a payable system."

Mr. P. Fraser (Labour —Wellington Central) said ho had no objection to the committee being set up, but the committee would not have enough time to make the exhaustive inquiry it should by the end of the session. " At. the same time* it is rather disconcerting at this late stage after the lines have been pushed on to find that the first item to be investigated by the committee is that of land settlement and probable development in districts to be served by these" railways," said Mr. Fraser. " I voted for the lines being pushed ahead on the assumption that the Government had all details about these questions." The Taupo Construction.

Attention was drawn by Mr. Fraser to the fact that the Rotorua-Taupo line construction was stopped on the ground that the settlement it would encourage did not warrant the expenditure, and it was most disappointing to find that an inquiry had now been ordered to find out whether other constructional work should be prosecuted on tho score of land development. Information on that point must already be in the possession of the Government. " It seems to me that the Government feels a great deal of uncertainty about a matter upon which it was certain 12 months ago," he added. The opinion that tho questions the committee was to bo called upon to decide should havo been included in the order of reference of ( Commission was expressed by Mr. C. A. Wilkinson (Independent—Egmont). He considered it would be quite impossible for the committee to do justice to tho demands rude upon it in tho short time that would be at its disposal before tho House lose. " Impossible lor Archangels." '

"A committee of archangels could not inquire into this order of reference in the timo at tho disposal of the committee." said Mr. R. A. Wright (Reform —Wellington Suburbs). He believed tho Government was at Inst, beginning to realise that tho construction of these lines was proving a drain on tho finances of tho country. "Tho Government must expect to be severely criticised for bringing down a proposal of this kind so late in (he session," said Mr. W. E. Barnard (Labour —Napier). Tho Government's repentance is belated, but if this proposal means that the construction of lines is to bo lifted out of the realm of party politics and dealt with, not by one party, but by Parliament, then that is to be welcomed."

Mr. 11. G. Dickio (Reform —Patea) said it looked to him as if the committee was being sot up to "whitewash" the Government. Mr. Dickie also declared that members whose political salvation depended on particular lines being continued should not be on tho committee. "It seems to mo that tho Government is committed to something it cannot support in tho light of information since acquired, and that it is seeking a way out," said Mr. W. J. Poison (Independent—Stratford), 110 said ho thought it essential that the committee should be impartial. He did not liko to make reference to any particular member of tho committee.

Mr. E J. Howard (Labour —Christchurch South) raised a point of order to ask whether Mr. Poison was entitled to suggest any member of the committee would be other than impartial.

At Mr. Speaker's suggestion, Mr. Polson said ho would withdraw any int« putation of partiality. He suggested that no partisan, however impartial, should ho on the committee. Mr. Speaker said if that were earned out no committee would be possible. Mr. Poison wns not in order in suggesting that anyone who went on the committee was biased or partial. Mr. Poison withdrew (be suggestion. ] Mr. A. E. Ansell (Reform—Chalmers) said concern had been expressed at tho fact that men would bo thrown out of work if 'construction were stopped, but the point seemed to be whether the men should be on the work at all, and whether that was not a matter for greater concern to the country. Mr. 11. S. S. Kyle (Reform—Riccarton) said tho committee would no doubt whitewash the railway policy of the Government..

Origin of the Request. " It seems extraordinary that the party which asked for the committee should now snv the committee is for the purpose of whitewashing the Government," said Mr. D. G. Sullivan (Labour —Avon).

Mr. Coates: Is that correct? Mr. Samuel: The usual misrepresentation. Mr. Coates: Will the hon. member stand by that, statement? Mr. Sullivan: Three members of the Reform Party are on the commission, and I do not know why that party wants to prejudice the committee. Mr. J. S. Fletcher (Independent—Grey Lynn) said the surveys on the South. Island Main Trunk had not been completed, and if, was therefore impossible to get estimates of cost. For that reason alone the committee could not report in a fortnight. The Government would be well advised to make it a recess committee. " I must say that the position is becoming more acute every day." said the Minister of Public Works, the Hon. \V. R. Taverner, " and it is only right that the. House should have nn opportunity or going into tho matter." The statement had been made that the committee could not report in time for the House to consider its finding, but the suggestion had. been made by the acting-Prime,Minister that it could sit in the recess if that was necessary. Mr. Taverner added that he fully recognised that the desire existed in the mind of the public that the ways should be removed from political control and from the sphere of party politics.

Denial by Mr. Coates,

Mr. Coates denied that the Reform Party had ever asked for a Parliamentary committee to go into the question of railway construction. Mr. J. McCombs (Labour— Lyttelton) s You asked for an investigation. "Yes, a full investigation," said Mr. Coates, "but that has been turned down. Members will realise that the Government brought up the question of railway construction last election and urged an increase, but now the Government, is throwing the question open. Whether that is the best way of going about it is not the concern of the Opposition at the moment.

Mr. Samuel: It should be an investigation by business men. Mr. Coates: I fully agreH with that. "Tho country wants to know whether the money lo be spent on railway construction during the next 12 months will be a proper investment, and for thafc reason the report of the committee sliou.d not be delayed until next session." said Mr. K. S. Williams (Reform —Bay of Plenty). "I suggest to the acting-Leader of the House, that he should adjourn Parliament when we have finished tha business and should reassemble the Hoasa a fortnight or so later to receive thft committee's report." Reply to Criticisms.

Answering the various criticisms, Mr./ Ransom said the inquiry had been brought about as a result of a promise made by the Prime Minister, tho Hon. G. W.Forbes, at the close of last session that a repoit would be made concerning railways construction. The logical corollary of that was an inquiry, such as was proposed. He could see no better way of dealing with the problem of the unpaying lines than to allow an impartial committee to inquire into their construction and operation.

It had also been said that the Government was trying to place (he responsibility for the lines on to others, but it had to be acknowledged that in such questions of national import, while the party in power at the moment had to accept its share of responsibility, the final decisions were .made by the majority of the House and not necessarily by tha Government.

"We have now arrived, at a time when I feel, as do other members of the Government, that a full measure of responsibility must be taken by the House a# a whole," Mr. Ransom said. "Before the House can accept that responsibility, members are entitled to have similar information to that the Government has before it." One reason why the committee was not set up earlier was to give the members a chance to apply themselves to their task with less interruption. The Government had not brought down the recommendation for setting up the committee before, as members were fully aware that there had been time for nothing else during the weeks prior to the departure of the Prime Minister.

Much had been said about the construction of new lines which wore not likely to pay, but it was worthy mentioning that the South Island Mam Trunk line, the one the Government had advo« cated, was the only one of the seven under construction that was expected to show a profit on its working, apart from other charges. One of the biggest factor! in bringing pressure to bear upon the Government, as far as the prosecution of railway works was concerned, was tha problem of unemployment, and it wa» realised that if construction were stopped it would affect the position seriously. If the railways were to be regarded quite apart -from national development they might as well close them all down and go in for road transport. The railways had not been run for profit iu the past, but for national development. Mr. Ransom concluded by expressing tha opinion (lint there would be plonty of information made available for the committee and he thought it would be able to report at an early date. If it could not report back to tho House before the end of the session, it could possibly make an interim statement.

Tho motion to set up the committea was then agreed to.