REPLY TO MEMORANDUM,

Grey River Argus, Volume XII, Issue 1507, 3 June 1873, Page 2

REPLY TO MEMORANDUM,

The Superintendent of Canterbury replied as follows : — i The Provincial Government, recog-. nising the great importance, both from i colonial and local point of view,iof thj; proposal made by the deputation r oi th i Inland Communication r Cominit'tee, ha 3 given it its most careful consideration. Tt appears from tiie letter of the Hoe. Mr Yogel, of 9th April, 'that the Colonial - Gov eminent is disposed to attach additional importance, .to the; original enterprise for which their assistance was invited in the event of the company seeing' its way to constructing from "some poinl of the Nelson and Brunnerton Railway a branch or extension to the Hurunui River 1 ,, so as to form hereafter a part of a trunk line through the Middle Island, and suggests that "although the line would only reach the borders of this Province! it might recommend a grant of land as iy\ subsidy," and in the event of this bein^ agreed to, the Colonial Government would ask the Assembly to authorise a loan t6 the company to the extent of the cost oil 1 the rails OfOJb "per yard) for*the"whol^ line, including the. extension. ' As stated to the deputation, the Proi vincial Government is not favorable to making any subsidy by grants of land, al suggested by Mr Yogel, and believes thai such a proposal would not meet wit! acceptance by the ;Provincial Legislature! With this understanding, and in the belief that having regard to the various public works already contracted for by the General Government or authorised b^ the General Assembly, there is little hope of any of the extension being constructed from Colonial funds for many years to come. The company propose that the extension from the Ahaura to the Huruaui, a distance of $6 miles pr'therer abouts, should be subsidised by the. Prloi vince of Canterbury to the extent of one-^ half of the total cost of the extension^ provided that the. maximum cost "to the Canterbury Covernment should not exceed L2OOO a mile, or a total of L 160,000. The memorandum proceeds to point out the conditions on which such a subsidy is asked for, which it is necessary' 'at the present minute to enter upon. It is understood that the deputation submit $he proposa} w^ a request that the Provincial' Government will give its opinion upon it prior to bringing it before the Provincial Council, and in order that the deputation may, if they think fit, have an opportunity of modifying its provisions. The Provincial Government i 3 of opinion that the success of the undertaking would depend upon the perfecting of the through communication between the northern terminus of the lines at present authorised in Canterbury and the West Coast, and that the proposal is therefore incomplete without provision being made for the interval between the rivers Kowai and Hucunui, a distance of 30 miles. The uost of the interval would probably be not less than L 150,000. It is estimated that viewing the enterprise, that is, the construction of 110 miles of railway as a whole, the proportion of the liability which the Province 5f Canterbury might be called upon to

undertake would not unfairly be represented by the construction of the line between the Kowai and Hurunui rivers, which falls within its own limits ; and that it could not properly be asked to provide moneys to be expended outside the boundaries of the territory which would incur, the ultimate liability. ..... "It may be observed that the principle which has hitherto guided the Colonial Legislature in the providing funds for the construction of railways, w,here;chargeable on the land revenue is, that tEe land revenue of the Province within which the railway is constructed, is primary liable, and then the districts through which the railway passes, by means of direct .taxation (see section \% sub-sections 4 and 5, "Immigration and Public Works Act. 1870.") -.:.■■-■ If, 1 therefore, the Province of Canterbury were to borrow on its own security moneys which wtere to be expended outside its boundaries, the districts in which the moneys were expended would- derive large benefits without ihcurriiig, anj^responsibility. This wonld notiably be the case of the Amuri district, winch,' without . being part of the Province of Canterbury, would receive advantages whiclrin' accordance to the principle to whicnlnave re- ; f erred, would probably only, aqcrue to portions of the Province which contracted the liability. ..';,,', ,.'■ ". ; ;, Holding this view, the Provincial; Government of Canterbury would f not feel justified in recommending, the acceptance by the Provincial Council oMheiprqposal of the deputation in its^resent^ornH* It will be gathered from the above minute that the simultaneous constructiou of the line from the Kowai to the Hunrunui, a line which would not probably be undertaken for some years to come, except in vie jv of perfecting communication with the West Coast, is iii' the, opinion :of the Provincial Government, a condition WHich ; would .properly-bp insisted upon by the Provincial .Council,'. and ;that the" Prpyincial, Government, considers that it would not be justified under the circumstances of the case, in proposing to' the Provincial Council the undertaking of liability for works outside : its- own; boundaries. At the same-time, should" the deputation be unable; to- see their way jto a modification .of. their proposal in the direction indicated, every facility will be afforded forA^ full discifssibn'of the; matter] by the W> vincial Council, and the Superintendent will forward the proposal for v the cj;!^ aideration of the Council at once, s' ■■■.'■ '■■' ■:■■-■'■ ■ ■ 'i! r 'WM.RoiiI^SIOKi;! Superintendent of Canterbury.