MERELY SUSPENDED

Nelson Evening Mail, Volume LXIV, 8 January 1931, Page 4

MERELY SUSPENDED

STOPPAGE OF RAILWAY CONSTRUCTION

IMPORTANT STATEMENT BY HON. A. E. RANSOM (By Telegraph—Press Association) WELLINGTON, This Day. An important statement concerning the Government’s reasons for calling a halt in a certain part of the railway’s construction programme, and Cabinet’s opinion that steps will have to be taken to effect further economics in the field of national finance, was made by the Acting Prime Minister, the Hon. E. A. Ransom, in replying to a deputation protesting against the cessation of work on the Waikokopu-Gisborne section of the East Coast railway. In expressing the opinion that the time was over-ripe for a complete review of the transport system of the Dominion, especially in relation to the heavy losses on railways caused through competition from motor vehicles, Mr Ransom said-he wished to make it clear that the four lines upon which work had been stopped had not been abandoned as seemed to be thought in many quarters. Work had merely been suspended in order that the Government might have breathing space in which to go into the whole question. It was imperative that heavy expenditure on these lines should be stopped. In the meantime the Government intended to apply itself to a further adjustment of the national finances. It was hoped in the course of a few days that it would be possible to make an important announcement concerning the future development work. The works would not be started again until it could be shown that they would be justified. The whole question was wrapped up in that of transport generally. The time would come when the people would realise that the railways should no longer be subjected to the unfair competition that had prevailed in the past. THE GISBORNE LINE CABINET’S DECISION TO STAND WELLINGTON, This Day. Refusal to alter the Government’s decision concerning the closing of the Waikokopu-Gisborne section of the East Coast railway was made by the Acting Prime Minister, the Hon. E. A. Ransom in reply to a deputation from Poverty Bay local bodies which asked that the section be completed. For nearly five hours the deputation put its case and listened to Ministerial replies. Although Mr Ransom said he regretted the necessity' of having to stop the work he would not reverse Cabinet’s decision.