EAST COAST RAILWAY.

New Zealand Herald, Volume LXVIII, Issue 20766, 8 January 1931, Page 11

EAST COAST RAILWAY.

CESSATION OP WORK.

DECISION TO STAND.

A FRUITLESS DEPUTATION. REPLY BY HON. E. A. RANSOM. [by telegraph.—own correspondent.] WELLINGTON, Wednesday. A refrsal to alter the Government's decision concerning the. closing of the Wai-kokopu-Gisborne section of the East Coast railway was made by the actingPrime Minister, Hon. E. A. Ransom, in reply to a deputation representing Poverty Bay local bodies which waited upon him to-day with a request that the section should bo completed. For nearly five hours the deputation put its case and listened to the Minister's replies. Mr. Ransom said that although ho regretted the necessity of having to stop tho work, he would not reverse the Cabinet's decision.

Other members of the Cabinet, present included the Minister of Railways, Hon. W. A. Veitch; Minister of Public Works, Hon. W. B. Taverner; Minister of Native Affairs, Hon. Sir Apirana Ngata; and tho Hon. R. Masters. The deputation was headed by Messrs. W. D. Lysnar and KS. Williams, M.P.'s. Mr. Lysnar said they had been under tho impression that the Government would not have decided definitely to stop work until tho deputation had been heard, but on arriving at tho House that morning he had received a telegram from three storekeepers to the effect that men on the construction work had definitely been discharged. The senders of the telegram said they were faced with bankruptcy, as they had granted credit to the men in the belief that construction would continue. They were placed in an awkward position through the Government's decision to close the line. Effect on Labour Markst. " You said in the House that it was a question for Parliament to decide whether these lines should be stopped," said Mr. Lysnar, " and you are departing from that now. I ask you to suspend this order in the meantime and that you and your Cabinet Ministers should inspect the line for yourselves and allow the question to be dealt with by the next session of Parliament." Mr. Ransom: Parliament would not do it

Mr. D. W. Coleman, Mayor of Gisborne, said the Waikokopu line jvould not be the only one affected, for the cessation of work would affect those lines already completed and which would serve as part of the system in the district. Men had been placed on the work from all parts of the country and they would be thrown upon the labour market with absolutely no hope of finding employment. A number of single men had lived on fish they had caught in the past week. Mr. Ransom: Yet on the average they have been earning 17s a day. Mr. Coleman said a number had been earning only 8s a day and men had been forced to seek the assistance of the Charitable Aid Board. Estimates of Revenue. Mr. C. G. Bloore, representing the Chamber of Commerce, said it was felt that, the decision had been arrived at ■without a full knowledge of the position. Tho railway authorities estimated that the annual revenue from the line would be £60,000, whereas exhaustive investigations showed that a total annual revenue of £145,743 could be expected from Gisfcorne alone. Mr. C. Matthews, chairman, who spoke on* behalf- of five county councils, said the railway was an urgent necessity, especially in view of the fact tnat the roads were being destroyed by motor traffic carrying passengers and goods that would otherwise go by rail. Mr. Claude Williams, representing the Sheepowners' Federation, said there was a difference of about 3s or 5s in the price of sheep at Gisborne and Hastings as the result of wastage of animals sent south bv road. A railway would mean the difference between prosperity and stagnation .to the district. Mr. K. S. Williams said he appreciated the financial difficulties of the Government. Time should have been given for a consideration of the position. it seemed that having taken the line ?o far the Government was 'spoiling the 6hip for a ha'p'orth of tar. Drop in Railway Revenue.

Mr. Veitch said it had been stated that tho revenue from Gisborne alone wou.d be about £145,000, or £35,000 more than the. amount, estimated by the department. However, last year the cost ofearning revenue was 91.68 per cent of the total revenue, so that the actual net increase in revenue on the supposed figures quoted by the deputation would not be very great. During the past 11 the railway revenue was down by £295.000 as compared with the previous year, an this drop had occurred mainly on noncompetitive operations. . Mr. Ransom said he appreciated tne feelings of the Gisborne people. Some nuestion had arisen concerning the closing of the line, but the Governments announcement in tho press was meant to ho a definite statement, that the four lines would bo closed. That was not, however, an intimation to the various staffs, which would not necessarily bo notified that they were to receive notice at the same time. That, accounted for the replv he had sent to Mr. Lysnar concerning dismissals. All men would be given a week's notice. Members of the deputation said that although men working on the co-opera-tive system were to receive a weeks notice, those working by the. day would Earnings of the Men. Mr. Ransom said he had instructed that all were to be treated alike, and he, would look into the position. It, had been stated that men were living on fish during the holidavs, but it was hard to accept this statement. It made one wonder how much reliance could bo placed on the other statements made by the deputation. The men on the works had been earning an average of 17s a day, and the Government could not be blamed if they took no care for the futuio \vh thev were earning good money. The suggestion had been made that, .he line could be made to pay 10 per cent but if it, could be proved 'hat it would pay even less than that, tho Government would bo warranted in going ahead with the work. There-was no reason to believe that the, railway would eliminate tho motor traffic, as this had not been tho case in other parts of the country. He sympathised deeply with those who were'out of work and those who would bo affected by tho cessation of construction. However, if the Government had waited until no one would bo hurt y taking action, it would then be too late to prevent further waste. It was fully recognised that the line had been advocated by Ministers, but times had changed greatly and they had been forced to change their opinions. The Government's decision would havo %a- stand atj least in tha meantime..