N.Z. RAILWAYS

New Zealand Times, Volume L, Issue 11665, 1 November 1923, Page 4

N.Z. RAILWAYS

REPLY AND GRITIGISM DEVELOPMENT OF COUNTRY CONSIDERED. STATEMENT BY MINISTER. Per Press Association. CHRISTCHURCH. October 31. Referring to the criticism of the Zealand Railway Department in the "Financial Times,” the Hon. J. G. Coates, Minister for Railways, stated to a deputation at Horrelville that it was often forgotten that the Railway Department considered the development of the country as well as the financial side of the service. Mr R. AY. McVillv. general manager of railways. stated that the Railway Department always considered the development of the country, although there has been a big deficit on the workings of branch lines, most of which were in the South Island. They acted as feeders to the main lines and also tended to develop the country through whicli they passed. But the department was not always given credit for tho manner in which it developed the country. Tlie Minister stated that Mr McVilly’s statement, in a measure, provided a reply to the criticism of the ‘‘Financial Times.*’ In New Zealand the department did not stick strictly to the financial side of the railway question, but considered the matter of development of the country, He did not think that the “Financial Times” quite realised this point of view. There were limits to expenditure. but the department was satisfied if it could earn 3| per cent., in fact Parliament had made a stipulation to that effect.

The Hon. D. Buddo, who wb6 present, asked that if the department earned more what 32 per cent, whether it would be able to give concessions. The Hon. J. G. Uoates: I don’t know about c(7ncessions, but we wil« bo able to give better service.