NEW ZEALAND RAILWAYS

Taranaki Daily News, 3 September 1929, Page 11

NEW ZEALAND RAILWAYS

LONDON CRITICISM OF POLICY REPLY BY THE PRIME MINISTER. •‘ESSENTIAL TO FINISH LINES”By Telegraph.—Press Association. Wellington, Sept. 2. Referring to the Financial News cable Sir Joseph Ward comments: “I notice in the cable news reference to an article in the Financial News on the position of the railways, apparently arising out of the discussion that has been taking place in New Zealnd concerning what js commonly referred to as the South Island Main Trunk. I have not seen the full text of the article referred to, but it appears to have been written under a misapprehension as to the facts. “The Government is not going to embark on the construction of any new lines, but merely proposes to complete the existing trunk lines, and it is essential in the interests of the Dominion that the main lines should be completed as soon as possible. The financial position of the railways generally is admittedly not satisfactory at present, but this is due to motor competition, a difficulty that is by no means confined' to New Zealand.

“As stated tn the Budget the Government proposes to take prompt action to remedy matters and when the short branch lines have been dealt with and some measure of co-ordination has been obtained between road and rail transport I feel sure that the trunk railways as‘» a whole will earn full interest on their cost. It cannot be gainsaid that the railways must be the backbone of the transport system, and obviously the trunk lines must be finished before it will be possible to obtain a complete and unified transport system based . on co-ordination between . road and railway transport.” The cable referred to by Sir Joseph Ward stated:—

The Financial News, discussing in a leading article New Zealand's railway policy arising out of criticisms in New Zealand regarding the South Island Main Trunk line, points out that the British investor will presumably be asked to lend money. If he forms the impression that the loans are to be employed on works that will long remain unproductive and constitute a drain on the general revenue, then the rate of interest will inevitably harden. “These considerations , suggest in the present state of the railway finance of New Zealand and elsewhere that caution should be exercised where it is a case of embarking on heavy capital commitments,” adds the paper.