UNCOMPLETED LINES

Poverty Bay Herald, Volume LXIII, Issue 19099, 21 August 1936, Page 10

UNCOMPLETED LINES

COST TO THE COUNTRY POLICY OF GOVERNMENT DEFENCE BY MINISTER (Per Press Association.) AA’ELLINGTOX, last night. In the course of the Imprest Supply debate in the House of Represents lives, the Rr. Hon. G. AV. Forbes said the House and. the country should be supplied with an estimate of the financial return that would cOiiio front the railway lines, the completion of which the Government teas undertaking. The Hon. R. Semple said that the position of the uncompleted lines was investigated before anything was done, and reports wore submitted to the Government. He was prepared to lay those reports on the table of the House. Referring to the South Island Main Trunk line, the Minister said that £535,000 had been spent and the interest amounted to £134,000. The estimated cost of completion was £2,300,000. There was a possible loss, he believed, of £40,000, but the figures submitted to him took into account the running costs only. There were other facts which would probably reduce that figure considerably, and the Cabinet considered it was far better to go ahead, with the possibility of increased returns in future, than to carry an interest burden for many years.

Regarding the Westport line, continued the Mini.-ter, the total spent was £027,000, the interest was £28,700, and the estimated cost of completion was £750,000. He did not know the estimated loss.

Coming to the Dargaville line, continued Mr. Semple, the sum of £444,000 had been spent, the interest amounted to £22,000, and the estimated cost of completion was £60,000. His own personal opinion was that the line should be completed, but he could not commit the Government.

Interest charges on uncompleted lines amounted to more than £1,000,000, and they had to be turned into services that might one day lie profitable from the New Zealand viewpoint. Few lines paid at the outset. When the highways were built, they were not expected to pay, but they were a service the country must have.

Mr. C. 11. Burnett (Lab., Tauranga) said ho was hoping that in the life of the present Government the railwayline to Tsneattta would be extended to OpOtiki.