WELLINGTON TOPICS

Hokitika Guardian, 16 March 1933, Page 2

WELLINGTON TOPICS

RAILWAYS. V-. FOR SALE OR LEASE. (Special Correspondent).-. WELLINGTON, March 10. Among the Balls that were rushec through Parliament yesterday in ordei that members of both House liiight get away to their K6)nes before the week end, the Government Railways Amend-ment-Bill attracted mast attention, The purpose of ( this bill, the Prime Minister explained in the House oi Representatives, was to enable the Government to' deal with companies or individuals that might desire to run lines' that were incomplete or unprofitable. “It would require a good deal of optimism for a company to go in for such an undertaking,” Said Mr Forbes with' characteristic candour, “hut possibly there may be optimists in the' country who - are prepared to take ‘over a line after it has been abandoned by the Railway Board or the Public Works Department ” The underlying idea of this scheme appears to; be to hand over the unproductive lines to private enterprise and so relieve the Railway Board of all its serious worries. ONLY HALF WAY. The “Evening Post” reminds Air Forbes and his colleagues that their negotiations for th 4 lease or gale of tho country’s railways will have to go much further than those they yet have indicated if any tangible results are to follow upon their overtures. “An agreement for sale or lease,” it emphasises, “should cover also' the rates in operation and construction, the terms of co-operation with the main railway system, and concessions to he given for reasons of public policy. The principles underlying these terms are of such, importance that they should be fully considered by Parliament before they become even the basis for negotiations. Presumably the terms of such sale or lease would have to be confirmed by Parliament, but we think the basic principles should be defined before negotiations are begun.” One can gather from the bill itself that it was but a crude and hasty production.

CAUTIONING THE GOVERNMENT

The “.Dominion” is not quite so emphatiiV'as Vs its evening contemporary in .reminding the Government that the country’s railways still stand in need of attention. “Private enterprise may succeed with unprofitable railway lines where State ownership has failed,” it says. “At all events the Government is prepared to give it the opportunity of trying,, if pffers to do so are forthcoming. The New South Wales Government came to a similar decision' Yedantly 'in connoctiiait with the Sydney tramways, hitherto n State enterprise 1 controlled by the Railway Department. The point 1 is that the Government has satisfied itself by painst-akihg (investigation that these lines cannot be run otherwise than at a heavy loss. Here again it is necessary to caution the ' Government against the'risk oil 'having s uch ventures thrown back on its hands with the possibility of having to run them at a loss to satisfy a clamorous district and its political representative.” This, surely is a catastrophe that could be avoided. SUBSIDIES AND CONCESSIONS. The contention is, however, that successive Governments have overlooked or disregarded the fact that the railways are bearing burdens for which they receive but little credit. The other day the New Zealand Manufacturers’ Federation submitted to the Government figures showing the financial assistance given directly and indirectly to the farming industries. The figures applied to a whole year. Free railage of lime, £60,000; subsidised railage fertilisers, £120,000; herd-testing, £7,700; subsidy on superphosphates, £l'o4,000; Massey College, £9,450; Rabbit Board subsidy, £11,500; condemned stock, £12,500; fields division, £189,000; labour for

farmers, £300,000; Exchange, an indirect levy on the community equivalent to 25 per cent, of the sterling value of , exports, £8,000,000. These and other simple facts put before the Government appear to show that the farming industries are supported by the community to the extent of not less than £12,000,000 a year.