PRIVATELY OWNED RAILWAYS.

Taranaki Daily News, 11 March 1933, Page 4

PRIVATELY OWNED RAILWAYS.

It was only to be expected that the Labour members of the House would offer strong objection to the Government Railways Amendment Bill, which is. in direct opposition to the fundamental but entirely fallacious Socialist policy of nationalising anything and everything. Even the member for Napier, whose constituency would be one of the chief beneficiaries if the Bill leads to anything concrete, criticised the measure on the grounds that it went too far, and supported his leader in the contention that the Government’s rights should be restricted to leasing. But in view of the facts the argument has some vital weaknesses. The Bill originated from a proposal made last January that in the interests of tfieir district certain East Coast residents should take over the completion and running of the Napier-Gisborne railway. As a commercial proposition the prospect is by no means an attractive one. Construction was abandoned by the Railways Board because the line was found on investigation to be a wholly uneconomic one. Approximately £3,500,000 had already been spent on the line, and it was estimated that another £l,500,000 would be required to complete it. Of this the Gisbome-Waikokopu section alone would require £1,186,180. And even if completed, the annual loss on the line was estimated at £290,930. It is little wonder that the board made the recommendation that it did. Against the estimated loss, of course, must be set the general benefit to be derived by better communication between Gisborne and the rest of the North Island, parti-

cularly in the transport of stock, and the country that would be opened up. There would not be much advantage from the latter point of view, however, for the surveyed railway does not deviate a great deal from the route pf the existing road. Local patriotism and the spirit of enterprise were nevertheless strong enough to prompt a definite suggestion that this pig in a poke be taken over and operated as a private line. Even with the return of much better times it Is difficult to see how the venture could be a financial success, but if private enterprise can achieve this desirable result all the more credit to it. In its widest application the Bill really gives power only for the Government to open negotiations with a company if one is formed, and the Prime Minister has given an assurance that any further developments will be referred back to Parliament for consideration. There seems little reason behind Labour’s united opposition to the measure except that it represents the antithisis to the party’s fundamental doctrine of universal socialisation.