ABANDONED RAILWAY

New Zealand Herald, Volume LXX, Issue 21562, 5 August 1933, Page 12

ABANDONED RAILWAY

NAPIER-GISBORNE LINE CONDITIONS OF DISPOSAL V _ COMMITTEE'S PROPOSALS ■ p []IY TELEGRAPH —OWN CORRESPONDENT] WELLINGTON, Friday Proposals for the completion of the Napier-Gisborne railway line by private enterprise have recently been the subject of discussion and a committee of departmental officers, together with tho chairman of the Railways Board, Mr. H. H. Sterling, has been considering conditions under which tho line might bo transferred to private interests. The committee has completed its tieliberations and members of Parliament for the districts concerned, Messrs. H. M. Campbell (Hawke's Bay), W. E. Barnard (Napier), D. W. Coleman (Gisborne), and K. S. Williams (Bay of Plenty), have been-informed of the conclusions arrived at by tho committee. Tho report suggests terms on which tho railway works could be taken over and tho line operated independently of tho Government system.

The acting-Prime Minister, tho Rt. Hon. J. G. Coates, was asked to-day if he was in a position to make public tho proposals of the departmental committee, but ho stated that he could not do so at present. The proposals had been forwarded to the members of Parliament directly concerned and it would be for them to make them public if they so desired. Two members of Parliament who havo been most intimately connected with the negotiations are Messrs. Camphell and Williams. Mr. W. D. Lysnar, former member for Gisborne, has also been taking an active interest in the matter. Several conferences have taken place in Wellington and it is believed negotiations have been advanced sufficiently to justify a prospect of the line being completed. The abandonment of the working section of the Napier-Gisborne line by tho Railway Department after the earthquake in 19131, and the cessation of construction when the railway was almost completed to Wairoa, led to an important legislative innovation at the end of last session. Under its terms it is possible for a private company to take over the assets, complete the railway and conduct it as a private undertaking- • • , Prominent interests in the district have not given up hope of seeing the railway constructed and there haTe been active negotiations with the Government on the subject to decide the terms on which the works can be made available now the Statu has indicated its desire to spend no more capital on the project. A committee of departmental officers was directed by the Cabinet to consider conditions under which the Napier-Gisborne railway works might be transferred to outside interests; in effect it was to advise the Government what would be a reasonable capital value to place upon it under the circumstances. Then, if the proposals are deemed commercially practicable it might be possible to interest capital in the venture and float a company to complete and operate the line. Before the State could part with its interests further legislation would be needed, when the terms settled for a lease or sale would have to be made known to Parliament.