ONLY ALTERNATIVE

Evening Post, Volume CXII, Issue 86, 8 October 1931, Page 14

ONLY ALTERNATIVE

IF LINES GO ON

£600,000 ANNUAL LOSS

ME. COATES'S VIEW

An annual loss of £600,000 which the taxpayers would have to bear was pointed to by the Minister of Public Works (the Eight Hon. J. G. Coates) in. the House of Bepresentatives last night as the only alternative to the rojoction of the Kailway Board's recommendations for the stoppage of lines under construction. In discussing the board's recommendations, the Minister said he had been surprised to find the Buller line sorted out, as he had believed that the linking up of the coal areas with the main system coulu be justified. Concer.ning all railway construction, however, the altered conditions and the economic Suorrn which had swept the country had to be taken into account. Mr. Coates was about to elaborate this theme when interjectors diverted him to other aspects. "What would have been the loss had you been allowed to go on as you were going?" asked Mr. H. T. Armstrong (Labour, Christchurch East). The Minister: "Very little good will be served by raking up that story." Mr. J. T. Hogan (Independent, Bangitikei): "That is an easy way out." "It would have been better to have taken a more conservative line of policy in rushing into railway construction," said the Minister. "If the resolution before the House is not approved, it will be an instruction from Parliament to the Government to go ahead with, these lines notwithstanding that the result will be an annual loss to the community and a charge on the taxpayer of £600,000." Mr. Coates paid a tribute to the capacity of the members of the board, commented on their impartiality, and expressed the opinion that they would serv.o the interests of New Zealand.

"Did you! select them?" asked Mr. W. J. Jorda^ (Labour, Manukau). The Minister: "I had nothing to do with that matter. I 'was never consulted, but that does not prevent me from saying the late Government made a fair selection." UNWISE TO BORROW. Continuing, Mr. Coates referred to the practicability of raising sufficient loan moneys to continue the present rate of construction. The information in the possession of the Government showed that it would be doubtful if fresh money could be borrowed for construction purposes. Mr. W. D. Lysnar (Independent, Gisborne): "That is for Cabinet; it has nothing to do with the question before the House."

Mr. Coates: "In my opinion it has. I believe capital funds have a very important bearing on the subject. I appeal to members to look at this issue in its broadest sense. If we are unable to borrow money to continue railway works —" Mr. Lysnar: "Sj:op all the works." Mr. Speaker said' he would have to name tho member if he persisted in interjecting. Rising to a point of order, Mr. Lysnar said he had been asked a question, and thought that out of courtesy he should answer it. (Loud laughter.) In reply to an inquiry from the Chair, Mr. Coates, with a smile, said he thought the "boot was on the other foot." " ' ' Mr. Speaker said he did not want to do Mr. Lysnar an injustice. "I am afraid the reprimand I bavo given him will have to do for another time," he added amidst laughter. Continuing, Mr. Coates contended that in view of all the facr.s it would be wise for the House to adopt the board's report. Mr. D. G-. Sullivan (Labour, Avon): "The board's report is your own original policy." Mr. Coates: "My policy was that in view of the economic stress all public expenditure should be overhauled, and v only such expenditure as could bo justified after investigation should be approved."