GISBORNE RAILWAY

Timaru Herald, Volume CXXXVIII, Issue 19862, 27 July 1934, Page 2

GISBORNE RAILWAY

ADVERSE REPORT By Telegraph—Press Association HASTINGS, July 26. That the line would not return sufficient revenue, including the net feeder value to ’ pay maintenance and operating costs, even if no portion of the capital cost was added to the railway capital liability, is the considered opinion of the Railways Board, in its report on the proposed completion of the Napier-Wairoa railway, to the Prime Minister, the Rt. Hon. G. W. Forbes, which was considered at a conference of interested parties in Wairoa to-day. The report emphasised the increasing competition which would have to be faced from both road and sea, in event of the line being put into operation. It also pointed out that certain revenue, which it was earlier considered would be available, -was affected by the decision to proceed with the erection of the Wairoa freezing works. After discussing the report the conference decided: (a) To ask the Government to have the Railways Board submit a detailed report upon the whole line. <b) To find out what guarantee would be required for a State railway from Napier to Wairoa and from Napier to Gisborne. (c) To discover what amended conditions would be required for private enterprise to complete and operate the line.