RAILWAY CONSTRUCTION

New Zealand Times, Volume LIII, Issue 12538, 30 August 1926, Page 8

RAILWAY CONSTRUCTION

SCHEME FOR FINANCING COMPLETE IN THREE YEARS SUGGESTION IN HOUSE In order to complete the different railways which have been commenced throughout liie Dominion, Sir Joseph Ward suggests tliat bonds bo issued within New Zealand to pay the contractors. In this way ho would hope to • -omnlete all lines—involving an expenditure of approximately eighteen milJi.ms sterling—in three years. The Hon. W. Xosworthy stated that tho country was going fairly fast at the present time, and if the policy of >ir Joseph were adopted. New Zealand would have to absorb from 20 to 30 thousand of migrants annually. In commenting generally upon tho Public Works estimates. Sir Joseph Ward said the country could no more carry out the works placed in the estimates than could any member of the House fly from the building. The estimates provided tor the expenditure of t‘7.037,000, but if anyone would look at last year’s estimates they would find item upon item voted upon whioh nothing had been spent. Eleven millions had been borrowed last year of which nine millions had been spent, and authority had been given fot much more money to be borrowed, this bringing the amount op to » tremendous sum. What was th* oae of putting tho hand over the heart and say* ing that the sinking fund had been dispensed with. It was farcical to 9ay that a reduction had been effected when ♦deven millions had been borrowed. RAILWAYS FIRST He was as sensible as anyone that, the country could not stop malting railways, roads, hydro works, and other public utilities —requiring millions of money—but tho rate at which the country was rushing was far too swift. He suggested that a scheme should be adopted providing that the railways be completed in three years; and when this was out of the road the other pub lie works could be gono on with.. Instead of putting votes on the estimates for two, five, or ten miles of line, why not get the whole thing out of the way, and adopt a scheme for the payment of the work on similar lines to the pur?hase of land under the lands for settlement scheme? Hon. Mr Xosworthy: It would mean a lot more borrowing. Sir Joseph Ward: I don’t tTnnk we can borrow more money from the London market for this. Mr Xosworthy: I know that. Sir Joseph continued that at the outside the completion of the railway would mean eighteen millions. He suggested that bonds should be issued which wero worth par at five per cent., instead of going on to the money market at all. If they cut the different railways into, say, twelve sections and offered to pay for them in their own stocks better results would be obtained than would be secured through going to the money market. The scheme was feasible and sound. There were some railways that had been in the course of construction for fifty ■'ears REDUCING DEBT He realised that in the course of the next five years the country would have to pay a huge sum in immigration, and this would add to the population by twelve or thirteen thousand people. But unless the railways were carried into the outlying districts where was the land to be procured for these people to live in ? Why should one railway be singled out and placed definitely out of the picture because the motor ran alongside, such as the South island Main Trunk. He thought that in spite of the fact that motors ran alongside many of the lines, the rail would be required just the same, and was essential for the development of the country. The people in the Old Country were not going to lend money to the Dominion at the rate of eleven millions annually indefinitely unless the policy nf development was altered. The indebtedness should be reduced in such a manner that it would in time wipe itself out. Hon. Mr Xosworthy said that a sysof finance would be required for jiving effect to the rural credits commission’s report, and if the same thing were to be adopted in respect to the development of the railways, he could not see how the country was going to # btand it. Sir Joseph Ward: 1 said pay the contractors with the bonds. Mr Xosworthy: It would add to the national debt just the same, and would force the Pubic Works policy of the country. We are going fast now, but this would force the pace to such a degree that the Government would have to bring about 20 or 30 thousand people here per annum to force the policy to completion. .Sir Joseph Ward: No, you would not. MORE BORROWING YET Mr Xosworthy: I cannot see how w> are going to get away from the policy that is being pursued at tho present time, and get the best possible value. I frankly admit that wo have had to borrow much during the past few’ years, and we w ill have to borrow much more during the next few years to complete hydro-electricity, and certainly railways. I do not believe that we should go on and hand everything down to future administrations. Mr W. K. Parry: They would have the habv to carry. Mr Xosworthy: We will have the baby to carry if we force the pace as has been suggested. We have as much as we can do to carry out what we have now. A nation is just like a farm —you have to produce according to development, and you cannot make this country anything other than what it is by forcing the pace. It is uatienee, and hard toil that will pull trie country through.