UNFINISHED RAILWAYS.

Otago Witness, Issue 1990, 17 April 1890, Page 11

UNFINISHED RAILWAYS.

There would seem,' judging from recent addresses of members of the. House to their constituents, to be a very general impression that the "tapering off" policy in regard to loan expenditure is not likely to come J to the natural end of a cessation of such expenditure altogether. No very 1 hopeful feeling is expressed as to the j realisation of the anticipations of 1887, nor indeed does it appear to be within the possibilities that at the conclusion of the next financial year the condition of the consolidated fund will admit of bearing the charges of carrying to completion the railways in course of construction. It may therefore be considered at least probable that the Government of the day, unless restrained by a very distinct expression of public opinion, will find themselves in difficulties ' from ■which a new loan would be the simplest way of extrication, and, however much it may talk about being opposed to increasing the indebtedness of the colony, will be strongly urged by the exigencies of circumstances to borrow sufficient money to complete the lines, authorised, at various times, by Parliament. In our opinion the mistake throughout has been in placing no finite limit to the railway expenditure. Loan after loan has been raised and expended, and railways remain unfinished, the money sunk on their construction lying dead, and we are now face to face with the absolutely certainty that the allocation under the Loan Acts of 1886 and 1888 are altogether insufficient to bring important lines to remunerative points. In the debates on the Otago Central Bill last session it was clearly demonstrated that the North Island is only biding its time, and has in view railway construction even over and above the large and costly works which have been initiated. The look out altogether is not a very hopeful one, unless the theory upheld by a certain eccentric school of political economists be accepted, and we can induce ourselves to believe that the prosperity of a country increases pro rata with the national debt. It would clear the ground for consideration of the situation and possible contingencies, if, in regard to the railways' under construction, the cost of bringing them to completion could be shown, and the aggregate amount compared with what has been allocated or remains available. The data at command do not enable this to "be done except approximately ; but it is sufficiently obvious that a very large amount would be required. Under the New Zealand Loan Act of 1886, L 1,325,000,, 325,000, less the sum of L 63,000 for costs and charge of the loan and contingencies, was appropriated towards the construction of certain lines of railway named in the schedule, and in 1888 a further amount of L 500,000, less L 30,000 was appropriated for the same strictly defined purposes. The railways included in the schedule of these Acts, with the exception of the North Island Trunk line, for which a special loan of L 1,000,000 was raised, comprise all that are in course of construction, and the details given in the Public Works Statement of last session show the progress, in each case. The ambitious project of connecting Wellington with Auckland by a through line was evidently conceived with- very vagus notions as to the cost. Instead of L 1,000,000, 000,000 covering the construction, over L 2,000,000, it now appears, will be required. The expenditure up -to the end of 1888-89 was M 12,000, and it is now estimated that, exclusive of the purchase of Native lands, and the costs and charge of raising loans, the completion would cost either L 1,673,000, L 1,666,000, or L 1,341,000,, 341,000, according to the route which may be adopted. The total sum available on March 31, 1889, was L 434,000. The Helensville northwards railway, for which L 75,000 altogether has been allocated, requires an expenditure for completion of LBO,OOO, with a balance towards this of only L 56,92 9; but L 23,000 allocated for the Penrose, another Auckland line, has been diverted to make up, or nearly so, the deficiency. The Penrose line, however, is sure to be revived when the occasion is favourable, being estimated to cost LI OO,OOO. Beyond the point where the Helensville northwards is now proposed to be carried, an extension is projected to Maungatoroto, 32 miles ; and, in order to provide for this and for the further extension in future, the Government propose to introduce a Bill next session, " set- " ting apart the proceeds of certain " kauri forests, the property of the

lt Crown, to the north of Auckland, as "an endowment." In regard to the Grahamstown-Te Aroha line, the loan allocation is short L 65,000 of the amount required to complete the work. The Wellington-] Woodville line, for which LIOI,OOO was allocated in 1886, is now complete to Ekatahuna, but there remains a gap of 27 miles of somewhat difficult country in the through railway communication between Wellington and Napier. The loan allocation is, however, exhausted, and the 27 miles of construction would no doubt be very costly. The BlenheimAwatere, also provided for in the Loan Act of 1886, is only completed for a distance of about 12 miles, and has absorbed the whole amount allocated, L 36,000. What it would cost to complete the line does not appear. The Grey mouth - Hokitika line requires LBO,OOO for completion, of which only L 26,178 was available on March 31, 1889. The allocation in 1886 was L 76,000. Coming nearer home, the Obago Central can only be completed to Middlemarch out of the present loan allocation, and as the line only carried to that point must be practically unproductive, it will involve an annual charge on the colony of the interest on the cost of construction — somewhere about L 500.000. The Oatlins River Branch, for which L 38,000 was allocated in 1886, cannot be carried within this amount further than about 13 miles from Balclutha, and the RiversdaleSwitzers line requires for completion L 15,000 beyond the balance of the existing loan allocation. The Seaward Bush line is also at a standstill for want of funds, only L 3961 remaining available. The few facts we have put together unmistakably indicate how serious is the position, and how imminent the probability that great pressure will be exerted from every part of the colony to renew the borrowing policy. Parliament has been in truth most reckless in authorising extensive railway construction without counting the cost, and of this recklessness the fruits are now being reaped. Ministers have a difficult problem to solve, and on its proper solution will very much depend the more immediate progress of the colony. Further increase of taxation is out of the question \ new loans involve proportionally augmented annual charges for interest. How, are ends to be brought to meet if there is further borrowing? On the other hand, what is to be done as to railway construction when the present public works fund is exhausted %