CAPITAL CUT

Hokitika Guardian, 22 March 1933, Page 3

CAPITAL CUT

NEW SOUTH WALES RAILWAYS.

WRITING OFF £40,000,000.

SYDNEY, March 9,

"Within the next few weeks tile Government, of New South Wales will write down the railway capital debt from £140,090,000 to £100,000,000 with the object of .fixing the capital,i charges of the system at a figure that will enable it to provide efficient service at a reasonable rate. The formula, to he adopted in determining the exact amount by which the capital shall be written clown has not yet b' e e» decided upon, but f.lie major factor will be the developmental value of the system.

Non-paying branch lines are generally regarded as being the cause of the constantly recurring railway deficits, but, without the traffic from those lines, the main lines generally would have difficulty in paying their way. Most of tileagricultural development of the State during the past 30’years has been made possible by the construction of the branch lines.

One, of the most prolific wheat-grow-ing districts in the State is served by a non-paying line. If the line were closed wheat-growing would cease, for the production of wheat is unprofitable if ftffhas to he hauled more than 20 miles to the railway siding. The railway does not pay because of the measure oi assistance given to the growers by the Government.

■ It is argued that the loss on the branch lines should be a general charge on the poor taxpayer. If the railway debt is written down it will not disappear. The interest, burden will still fall on the State, or, in other words, on the ever-patient taxpayer. Still, if the railways have to find less interest the deficit will he less, and in that way tilings will be evened up. It is verv much like robbing Peter to pay Paul. There is a chance that. the. pub’ie will lie given relief in the direction of lower railway charges. The sting of railway taxation might not then be so irritating. That at least is what the politicians arc hoping. .' ' '■