WILL NEW LINES BE PROFITABLE?

Star (Christchurch), Issue 18543, 17 August 1928, Page 8

WILL NEW LINES BE PROFITABLE?

RAILWAYS EXTENSION CRITICISED IN HOUSE.

(Special to the “Star.”) WELLINGTON, August 17.

Grave doubt was expressed by Mr G. Forbes, leader of the Nationalist Party, iti the House last night as to whether the Government is pursuing a policy, announced some years ago, of not proceeding with the construction of new railways before they had been fa-\-ourably reported on by the Railway Department, agricultural experts and others who could say that a line would be profitable and that there were good evidences of payable traffic. Mr Forbes challenged the Prime Minister to show where such reports existed in regard to the recent railway extensions.

Mr Coates: The evidence is all in the Public Works Statement. Mr Forbes repeated that he had looked through'* all possible Departmental reports, but could find nothing, and he was assured by people who lived in Hawke’s Bay that the GisborneNapier line was costing an immense sum with its huge viaducts and bridges, but there was no likelihood of its paying. Even the member for Hawke’s Bay had expressed his doubts about it payinp’ and, if the Government had any information showing that this line would not be a drag on the national railway system, he would like to see it. This line had cost £1,800,000 to date. Expenditure was still going on. but he was positive, if this project was examined by any body of intelligent men and the probable earnings taken into consideration, the line would not go on. He liked to see the transport facilities extended to every part of the Dominion, but there was a limit to railway extension if the line would not pay interest on the cost of construction. “People in Hawke’s Bay,” continued Mr Forbes, “are declaring that this line is scandalous extravagance, and wonder if it is justified, or whether there is political consideration behind it or not, or whether it is being constructed entirely on its merits as a businesslike proposal.” The Prime Minister: You don’t know.

Mr Forbes retorted that people in the district said it was a scandal, and he would be lacking in his duty if he did not bring that opinion forward and urge an inquiry into all railway extensions by a select committee which could call evidence. He would prefer this procedure to that of a Royal Commission. As business men with a responsibility to the country, it was high time members undertook some further examination to see if the line was justified.

A member: What about the South [sland main trunk?

Mr Forbes replied that the member for Waiau had mentioned the necessity of completing this line, and he had introduced a deputation to the Government urging this course. Despite the fact that it ran through his district, he would not advocate it going on if it was not a proposal which would show a reasonable return on the cost of construction.

Mr Coates: Kaikoura is out of the honourable gentleman’s district. He is very brave now. Mr Forbes: The Prime Minister was always one to attribute want of courage to an opponent. He would get the name of being a strong man if he allowed the whole policy of railway construction to be examined by those who are independent of political considerations.

The report of the Royal Commission which investigated the prospects of extending the railway from Rotorua via Waiotapu to Taupo some years ago was quoted by Mr Mason (Eden). He stressed its doubtful expressions regarding the character of the land and the amount of traffic likely to be created, expressing the opinion that it appeared to be the wildest possible enterprise. The only one thing certain was that tens of thousands a year would be spent to serve land of such character that it was doubtful whether it was worth spending money to improve it. Mr Mason thought the only possible justification for building the East Coast railway was perhaps the desire of Mr Coates (the man who got things done) to build a memorial to the efficiency of the Public Works Department. Doubtless Mr Coates was annoyed that the huge Sydney Harbour Bridge should be out-rivalling his project in size and cost.