RAILWAY EXTENSION

Opotiki News, Volume II, Issue 173, 24 April 1939, Page 2

RAILWAY EXTENSION

TANEATUA TO OPOTIKI AUCKLAND OPPOSITION CONSIDERED UNWARRANTED A report condemning the expenditure of the. Taneatua,-Opotiki railway as absolutely unwarranted was received by the Auckland Chamber of Commerce council from the junior chamber. It was stated that the prospects of the line ever paying working exponses- let a lorn l interest on capital, were negligible. After quoting figures showing the loss on working on the existing line, from Paeroa to Taneatua, the report stated that the loss per mile on the extension to Opotiki i>robably would be greater than that on the existing line. As that loss for the Last fiscal year was £1340 per mile, the proposed- 25-mile extension would show an annual loss of no less than £33.500. Transport by Sea. Although it was realised that the value of railways could not always be calculated in terms of their operating profit and loss, in the present case it was difficult to see how the line would increase the. productivity/ of the district served!. The main products, butter and cheese, were at present transported to Auckland by sea.

The report suggested that the Government would bo well advised to spend £200,C00 on road improvements, rather than £050,000 on the proposed: railway. The chamber was urged to: make every effort to stop what was considered wasteful expenditure cli the rail extension.

The junior chamber’s report was discussed by the communications and transport committee of the chamber, &a<v- its recommendation that the -Chamber should make representations .to’ tlie Commission on Transport was ■apprCA-ed. .iC.iN).-