RAILWAYS AND MOTOR COMPETITION.

Manawatu Herald, Volume XLIX, Issue 3763, 6 March 1928, Page 2

RAILWAYS AND MOTOR COMPETITION.

ULTIMATE SUCCESS OF RAILWAY SCHEME. PRIME MINISTER’S CONFIDENCE. Dunedin, March s'. Confidence in the ultimate success of New Zealand’s Railway scheme and its effect on the future of the country as a whole was expressed by the Hon. J. G. Coates, Prime Minister and Minister of Railways, at a farewell social to Mr. H. P. West, retiring district traffic manager yesterday. In a spirited address, he saidthat the country would have to face a heavy expenditure for the next two or three years to place the railways on a thoroughly payable footing. But when once they did become firmly established there would *be steady progress and prosperity without any retrogression. « “It is possible,” he told his hearers, “that within the next few years the Department will be faced with the hardest fight which has yet fallen to' its lot. But lam certain of its ultimate success, for already it has achieved singular results. “At present we are meeting with a keen competition which means a loss of £1,000,000 a year. This is the result of road competition alone. We are not out for a, complete monopoly, but we have to be wise for all possibilities and be first on the mark at all times to handle competition, and we cannot do this unless we have the equipment to give complete satisfaction.

' “To the visitor from overseas we must give all the attention that he would receive in other countries. We have got to live up to what other people want, and if we can complete the rail sj f stem conjointly with other transport systems with which we are linked up a great avenue of business and opportunity is open for us.” .. ,

Mr. Coates then expressed his complete confidence that in five or six years if the present policy is proceeded with and if the services asked for are completed, the Department will be placed in a position where it can compete successfully with motor traffic, give satisfaction to the Dominion as a whole, and develop the country on lines which-will make for prosperity and success. “It is quite possible,” he added warningly, “that you will lose money for the first few years. But don’t let people interfere. Complete your scheme first although it may involve you in quite a number of millions—and indeed it will —the requirements are essential.”