LOSSES ON RAILWAY LINES

Taranaki Daily News, 12 September 1930, Page 9

LOSSES ON RAILWAY LINES

AN INQUIRY PROPOSED WIDE ORDER OF REFERENCE KAILAVAY AND ROAD CO-OPERATION, EFFECT OF NEW CONSTITUTION. By Telegraph.—Press Association. Wellington, Last Night. The Hou. E. A. Ransom gave notice jn the House of Representatives to-day ot Jiis intention to move that a committee bo appointed, consisting of ten members, to consider the railway lines under construction as enumerated in the statement which was laid on the table of the House by the Prime Minister on August 22, and to make recommendations thereon, having regard to all relative circumstances, the inquiry to include: —

(1) Land settlement and probable development in districts which would be served by the continuation of such railways. (2) An estimation of the benefit and convenience to the general public. (3) The effect on the finances of the Railway Department. (4) A provision for interest and. operating charges in the case of railways whore the revenue is estimated to bs insufficient.

(5) The relative cost and utility of rail and road transport of (a) primary products to ports, (b) distribution of imports, (c) between centres of population, (d) over gaps between uncompleted ' sections of lines, having regard to cost of transhipments at existing railheads, (e) for developmental purposes. (6) The problem of harbour development with relation to the long distance transport of bulky freights such as timber, grain and coal.

(7i Tiie extent to which their completion will induce additional traffic on existing lines. (S) An unemployment relief committee to consist of Messrs ' Healy, Ho; ?.n, Howard, Jones, Jordan, Lye, MacM.nan, Taverner, Veitch 7 and Waite. The Rt. Hon. J. G. Coates said in his opinion the order of reference did not cover the whole situation. The relative cost and utility of rail and road transport services should be first on the older of reference, and he believed there should bo further provision for inquiry into the present and ultimate financial effect on tho country if the programme of railway construction recently outlined by the Government were carried, out 5 qiso into the . wisdom of expending borrowed money at the present high rate of interest in view of the adequacy of road transport to meet modern requirements. He contended that if this aspect were not included in the committee’s inquiry it would be possible for the real issue to be side-stepped. The mot important question was whether road transport could meet modern economic requirements. Mr. H. E. Holland asked whether the committee would be purely a sessional ope of whether it would sit during the recess as well. He suggested It would not be possible to cope thoroughly with such an extensive order of reference in a comparatively brief space of time. Mr. Ransom said he would be prepared to include in the order of reference the aspect to which Mr. Coates had drawn attention. The Government was anxious to have full information and desired to impose no restriction whatsoever. Mr. Coates- asked whether the Government would also include a clause giving the committee power to order any investigations. Mr. Ransom said he would bo prepared to consider this, ' Replying to Mr. Holland Mr. Ransom said he hoped the committee would be able to complete itg report during the session, but if that were not possible the Government would give further epnsideration to the matter.