GISBORNE RAILWAY

New Zealand Herald, Volume LXXII, Issue 22262, 9 November 1935, Page 17

GISBORNE RAILWAY

NO PRIVATE CAPITAL p FINANCIERS NOT INTERESTED LABOUR CANDIDATE'S CLAIM [BY TELEGRAPH—OWN CORRESPONDENT] GISBORNE, Friday A declaration that there was not the •lightest hope of tho Napier-Gisborne railway being completed by the employment of private capital provided from London was made by Mr. D. W. Coleman, M.P., at a meoting in Gisborne. Tho Labour member stated that he had investigated carefully the possibilities of the scheme advanced by Mr. W. D. Lysnar and had satisfied himelf that there would not be a penny forthcoming from London for investment in the line. "Some little time ago I asked the Prime Minister whether during his stay in London he had been approached by any financiers or thoir representatives in connection with tho Gisborne railway. He assured mo that not one representative of a financial group had approached him either in Britain or in New Zealand with any proposal to put one shilling into the scheme," continued the speaker. "Ho said that he had been approached in London by two company promoters to secure in concrete form the terms on which the New Zealand Government was prepared to deal with private enterprise, and that he had told them the terms were in a letter he had given to Mr. Lysnar and also to Mr. K. S. Williams, M.P., and mj'self. "There were two minor clauses in those terms which might have prevented interest from being aroused in the project, and the Prime Minister agreed to delete or amend these. He was asked whether, if an agreement was drawn up for him to sign, the New Zealand Government would bo willing to dispose of its assets. On the subject of the agreement, which he held was one for legal advice, Mr. Forbes referred the company promoters to the High Commissioner, promising to sign an agreement before ho left London if the High Commissioner was satisfied as to the legal aspects of the agreement. Mr. Forbes told mo that he had heard nothing further from the_ promoters nor had the High Commissioner. "The two company promoters were simp'y working to get something they could put before financial interests, commented Mr. Coleman. He had a letter from Mr. Forbes fully* endorsing the oral statement he had repeated above and it was clearly proved that there was not much, likelihood of the line being taken up by private enterprise. He offered the electors of Gisborn© a pledge on behalf of the Labour Party that it that party was returned in sufficient power to secure the reins of Government the Gisborne railway would be one of the first major works to be undertaken.