NO MORE LOSSES ON BRANCH RAILWAYS.

Star (Christchurch), Issue 17833, 29 April 1926, Page 4

NO MORE LOSSES ON BRANCH RAILWAYS.

MR COATES EXPRESSES HIMSELF EMPHATICALLY.

(Special to the "Star.") WELLINGTON, April 28. Replying to a deputation from the Tauranga Harbour Board which waited on him to-day, the Prime Minister declared emphatically that the country was not going to be allowed to incur further losses c»n the branch line railway system if these could be .avoided. It was no use to say that losses could be made up from the Consolidated Fund, because, in the end, the people had to meet those losses.

There is a four-mile stretch of railway line, laid down by the Public Works Department from Mount Maunganui t-* a point on the line between Tauranga and Whakatane, and the Tauranga Harbour Board is anxious that this piece of line, which was constructed by the Public Works Department, not as a branch of the ordinary railway

system, but merely for the. purpose of conveying the material from Mount Maunganui for the continuation of the East. Coast railway, should be used for the transport of goods landed at what, is known as "The Mount,” but without any surcharge. It was stated by the deputation, that there was a prospect of certain companies starting industrial undertakings at "The Mount,” and that the carriage of their goods over the line would be worthy of consideration from the revenue point, of view. Mr Coates stated definitely that the section of the line would be no means be regarded as a branch of the ordinary railway system, but if the interests concerned were agreeable the commercial branch of the railway Department would be prepared to arrange contracts for the carriage of goods over the line. "In the interests of the people of New Zealand, I am not running into any more losses if T can avoid it,” said Mr Coates, in urging the Tauranga Harbour Board to be cautious in regard to expenditure for wharves at "The Mount.” Mr Coates remarked on the tendency, of harbour boards to spend money on works when they should be conserving their expenditure until they were certain that the proposed undertakings would be a success. lie warned the Tauranga Board against "lashing out” into expenditure on a second port at "The Mount,” for which he was not prepared to grant any facilities. Harbour boards should not speculate with public money. They should be satisfied that they had a good proposition before they did anything. "We are not at liberty.” said the Prime Minister, "to speculate with public money, whether it is from the pockets of the ratepayers or the general public.”