RAILWAY CONSTRUCTION.

Manawatu Herald, Volume XXXI, Issue 497, 21 October 1909, Page 3

RAILWAY CONSTRUCTION.

GOVERNMENT'S NEW POEICY.

THE PEOPEE TO GUARANTEE THREE PER CENT.

The Prime Minister on Monday afternoon made an important statement regarding a new policy of railway construction that the Government has decided upon. He was addressing an Otago deputation that had come from the south to urge the completion of the Lawrence Roxburgh railway—a hue that had recently been stopped altogether because it was clear that it would be a nonpaying line. Sir Joseph Ward said be wished to tell them plainly and frankly that the Government had no intention of making railways that would not pay. Unless applicants for lines were prepared to show their sincerity by helping to prevent the other lines of the country being saddled with unproductive railways and so increasing the cost over the whole, the Government could not come to their assistance. Where they were sure that the return was not going to give a reasonable result, the Government could not undertake to make railways. It was the position in connection with this railway and another railway in Otago that was not paying that had made the Government stop this work at the present point. What the Government now proposed was that the line should be carried to Beaumont, hut not on to Roxburgh. This would give an opportunity of seeing whether the traffic would be augmented to such an extent that it would pay if carried on to Roxburgh. The figures in the possession ol the Government were quite different from those in possession of the deputation and showed that the line would not pay. There must be something more than a mere statement that the line would pay, and the people interested would have to guarantee the difference if it did not pay up to three per cent. For instance, if the line was found to pay only per cent, then the people between Lawrence and Beaumont would have to make up the extra half per cent. Looking at the railway system of the country a as whole, he did not think the Government should be pressed into the position of providing railways that were going to pay less than three per cent; That amount was not equal to the interest paid on the loans. The Government was anxious to help the people. If the people interested in this railway had faith, and were prepared to support that faith, the Government was anxious to help them. The Government expected this particular railway to pay 3 per cent., and they proposed to ask Parliament to make such provision as would enable any shortage to be made up ; and the same principle would apply to any other line asked to be constructed.

Mr Jas. Allen asked what principle the railway was to he constructed on; was it to be constructed on the present principle, or would the Government permit the line to be constructed upon absolute business principles either the contract or some other system in which the workmen would be paid proper, yet reasonable wages ? What the deputation said was that the line could be constructed for less than ,£SIOO a mile.

Mr Roderick M'Kenzie: The Railway Department would not let their rolling-stock run on such a line.

Mr Allen : They let their stock run on lines costing only ,£4OOO in Australia. He asked whether any credit would be given to this line for acting as a feeder to other lines.

Mr Arnold; If the line to Beaumont paid, would you then carry it on to Roxburgh ? Sir Joseph Ward: We would then consider that, but we do not want to put the heavier burden on the people in the first instance. Mr Sidey said the principle should be made general throughout the country, and not applied only to one line.

Sir Joseph Ward said the general principle was a matter for Parliament. He had no objection to make it apply generally from one end of the country to the other. Indeed, he thought it would be a good thing. Certain non-paying lines were having an effect on the railway system as a whole, and causing an outcry and criticism even beyond our own country that was not fair to the railways as a whole. He said the comparison with Western Australia as to the cost of construction was not a fair one, as, in that State, the country was flat, and railways were much easier to make. In New Zealand it was possible that we had made a few mistakes here and there, but it could not be said that our railways had been made at an excessive cost. If at first they had laid down 701 b. rails, a great deal of expenditure since incurred would not have been necessary, and our system would have been a very cheap one. As to how long it would take to construct this line to Beaumont, that depended upon how much money the Government had available in one year.

They could not say how long it would take to finish it. Mr Moritzson said he could show the Prime Minister how to complete the line quickly. Let them do one at a time.

Sir Joseph Ward : Very well, Mr Moritzson, let us stop this one for five years. We are all prepared to sacrifice our brother's blood to save our own. The policy of the Government is a matter that will

come before Parliament. I have told you how you can carry this line on. You can meet and consider it, and afterwards I shall be glad to hear what you have (o say. The deputation met subsequently in the afternoon. The proceedings were private. It is understood they will submit certain phases of the question to the people interested before again approaching the Government.