RAILWAYS AND LOANS.

Dominion, Volume 5, Issue 1424, 26 April 1912, Page 5

RAILWAYS AND LOANS.

PREMIER ON NEED FOE BORROWING. (By Telegraph-Press Association.) Auckland, April 25. Some interesting remarks wero mado by the Prime Minister, in reply to a deputation from Waiuku district, which waited upon him and tho Hon. A. M. Myers to-day, to urge tho claims of branch railway construction. Mr. Mackenzie said the matter of branch railway construction must be dealt with on definite lines of policy. The country at tho last elections had raised a loud voice of protest against excessive public borrowing, and tho Ministry of which he was tho head intended to respect the wishes of the people jn this connection. Regarding tho claims of Auckland, he mentioned that this province had come in for a good, share of railway expenditure out of loan moneys last year. "Thcro are many parts of New Zealand," the premier continued, "which aro far worse off for railway communication that Waiuku, and unless the country comes to a decision regarding tho desirability for construction of these branch railways, I don't think they will go on. At any rate, tlio question will be made a matter of policy for the Cabinet to consider." , r Mr. Mackenzie added that the Ministry wero not going to assume responsibility in this matter, and risk denouncement from one end of the country to the other for purely political reasons. Ho expressed a wish to visit tho country, lyid added. "I havo no hesitation in saying that if the country is willing I am quite prepared to borrow for the undertaking of public works of this nature. T am for progress, and so aro my colleagues." (Hear, hear.) The Premier assured the deputation that he was satisfied that: their railway scheme should be included among others in aiiv general borrowing scheme. Hesnyl that, in face of the outcry against borrowing, there was not a single item in the recent five million loan which any nublic-spiriteil citizen could tako exception to. "Of course." the sneaker added, "I quite agreo with tho spirit of economy, but whsre a country is progressing at the rate New Zealand is. it is essential to maintain a borrowing policy. At the present time we are receiving from our public investments more than sufficient revenue to meet the interest upon all of our borrowed money. The financial nosilion of the country is good, and I shall be glad indeed to go into the matter of branch rraihray construction with the Cabinet." (Hear, hear.) He had no doubt that it was a wise policy, mid ho asked why should m'oductivo district's bo held ui) for 20 or 30 years when tho whole of their nroduce could be sot on to

wheels and slipped along to the market? Ho intended.to pursue a forward policy. (Hear, hear.) Hamilton, April 25. Honlying to a deputation of settlers ot the To Awamutu district, who asked for a trial survey of a railway lino' from Te Awamutu to Putaruru, the Premier said at present there was no money available for such work. At the last election one nf the blackest charges levelled against the Ward Government was that of borrowing. The Government had been blackguarded and abused from one end of the country to the other, and if the Inst election wns to bo tnken as an indication nf .the opinion of the people, there would be no money for constructing a railway. It was easy to anpease the outcry of reckless borrowiiu' liv ceasing to borrow: if the ncoplo. did liot want development it would not be given. Personally, ho was in favour of progress, but if there was no nionev in hand it could not he favoured. Ho concluded by stating that political hypocrisy must cease.