NORTHERN AUSTRALIA.

Taranaki Daily News, 24 January 1933, Page 6

NORTHERN AUSTRALIA.

It is not surprising that the City of London is not enthusiastic over an alleged proposal to build a railway from New South Wales to Northern Australia. It was reported that a private company was being formed to build the railway on condition that it received large grants of land in the areas served by l the railway. In addition the Federal Government was to be asked to guarantee the interest payable .on the bonds the company proposed to issue. The capital mentioned was £15,000,000, but the fact that a Government guarantee is being sought shows considerable doubt of the soundness of the proposal as an investment. The proposed route, from Bourke to Darwin, follows the suggestion made 20 years ago when the Commonwealth first took over the Northern Territory from the State of South Australia. Undoubtedly. such a railway would serve some of the finest grazing lands ,in the Territory. When the proposal was made South Australia claimed that the transfer of the Territory included an undertaking to complete the partially constructed “direct” railway from Adelaide to Darwin. Ultimately this was admitted and work proceeded at both ends of the line, though there is still a gap of some hundreds of miles to be filled before the North-South railway connection is complete. On the eastern route the cheapening of transport would certainly increase production. For many miles from the borders of Nevz South Wales and Queensland the tableland country has proved excellent for sheep and cattle raising. Stations have been abandoned simply because the cost of transport and labour made them unprofitable. Further north there are thousands of acres of excellent cattle fattening country, provided water supplies can be made available. This is quite possible by means of sub-artesian bores, but transport and labour costs have made them prohibitive. Ample capital will be necessary for any large developmental work, and if the Commonwealth is asked to guarantee a private company it may prefer to find the capital itself. So far the returns from State or private enterprise in Northern Australia have been insufficient to make it an attractive field for further investment. '