The Timaru Herald TUESDAY, AUGUST 26, 1930. THE TEST OF SINCERITY.

Timaru Herald, Volume CXXV, Issue 18655, 26 August 1930, Page 8

The Timaru Herald TUESDAY, AUGUST 26, 1930. THE TEST OF SINCERITY.

Only a few hours before the time fixed for the departure of the Prime Minister for the Imperial Conference, the hope recently expressed by Mr Forbes, that he would go to the Imperial Conference as Prime Minister-, and would be allowed to return in the same capacity, was recalled by the Hon. W. Downie Stewart, in the course of his speech on the Government's Land ajid Income Tax Amendment Bill. “I do not know whether the Prime Minister is going to blame us if in his absence at the Imperial Conference his Party expires of its own accord,” remarked Mr Stewart. “Its pulse is not beating very strongly now, and if for any reason it stops altogether during the Prime Minister’s absence, I hope he will keep in mind that it is no act of ours.” The Prime Minister replied: “It may be an act of Providence.” “It may be an act of the Labour Party,” rejoined Mr Stewart. “If the Prime Minister gets a cablegram when he is away stating (hat the United Party has come to a natural end, I do not want him to assume immediately that there has been any attempt to disrupt the position by the Reform Party in his absence.” The Prime Minister ultimately appealed to the House of Representatives to put aside all Party feeling and not pay too much regard to parochial claims. It is deeply significant, however, that some people who talk most glibly about disregarding party and parochial interests, are often the biggest Offenders when it comes to the division of loaves and fishes. For example, let us take the railways. If the Prime Minister really stands for national interests before all parochial claims, he could save the country thousands of pounds and the prospects of heavier losses in the immediate future. Already an effort is being made to balance the railway budget by the closing down of unprofitable branch lines, in the interests of national finance. And in this connection it is worthy of note that the people of New Zealand should take note of the trend of financial and economic affairs in Australia and be warned in time. Not unnaturally, the great body of electors, having had their attention repeatedly drawn to the menace ahead, might not unreasonably ask themselves if the Prime Minister and his colleagues are really prepared to lead in taking a statesmanlike stand against all efforts to place parochial interests before the interests of the nation. The report on railways under construction that was presented to Parliament last week, offers the Government and the House of Representatives an opportunity to rise above Party feelings and at the same time ignore claims that have nothing but parochial backing. The report showed that the Government’s railway building operations are likely to impose additional burdens on the national purse. If Mr Forbes really believes what he says, when lie urges that Parliament should sink Party differences and ignore parochial advantages in the interests of national welfare, it will be difficult for the Government to demonstrate the wisdom of its railway building programme. Already the country faces a railway loss of £1,211,269, and this, with the savings and revenue increases it is hoped to effect this year, is likely to be reduced to below £850,000. The promptings of national considerations ought to convince the Government that it is inviting disaster by persisting in railway building operations which, on the most conservative estimates, are likely to show net operating losses of nearly £50,000 per annum. But this is not all! The return submitted for the consideration of Parliament shows that the Government’s railway building operations will involve an interest, loss totalling £687,000. Doubtless, the Government may offer the explanation that railway construction is needed to link up the national system, but the fact remains that the State railways are already showing heavy annual losses, and it is a grave reflection on the capacity of the Government that it persists in adding to the losses on the railways by building new lines which are doomed to increase the burden already being borne by the general taxpayer. There are lines, of course, which are nearing completion, and comparatively little interest-saving is possible, but in the three lines set out below there is yet time to reconsider the desirability of proceeding: Line. Total cost. Spent. £ £ Gisborne-Eskdale . 4,871,000 2,998,904 S.I. Main Trunk . 2,581,000 193,631 Kawatiri-Inangahua 1,853,000 187,500 These lines will involve interest charges totalling nearly half a million a year. Hence if, as has been forecasted by experts, the lines have not the remotest prospect of yielding operating profits, it will be seen that if the annual interest and sinking fund charges are added to estimated losses on operating, that a big increase in the annual deficit on tiie railways operations is certain with the inevitable consequences

of heavy taxation to meet the losses. Obviously, here is an opportunity for the Government to ignore Party considerations and pay no regard to parochial claims, lmt to take a line o 1 action in the interests of sound national finance.