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Sun (Auckland), Volume II, Issue 392, 28 June 1928, Page 1

VIEWS ON UNDERTAKING ‘•The land must be settled and developed in conjunction with the construction of the railway, otherwise the proposal is futile. It is a golden opportunity for the Government to show a progressive land policy.” This was the opinion of Mr. H. T. Merritt, president of the Chamber of Commerce, on the Government’s decision to proceed with the Rotorua-Taupo railway. Mr. Merritt said that it would be quite useless to leave the development to private enterprise. Early development of the area to be opened up by the railway would give revenue to the department much earlier than if the country were allowed to remain waste until private enterprise took it up. “We are quite satisfied from the reports we have had, that the country, even the bush-sick areas, can be made productive,” he said, “but the railway itself will only be a burden on the finances of the country if no development policy is entered on.” AVOIDING A LOSS “I>oubts have been expressed about the Prime Minister’s statement of afforestation possibilities. We have no 'information that supplies of timber will be marketable in five years. “It seems clear that the line will be uneconomic for a period without the essential feature of land settlement,” The past-president of the chamber, Mr. A. G. Lunn, said: “We can only conclude that the Government has weighed up all the possibilities and decided to face the question of this railway’s not being added to the unfortunate list of political lines which do not pay any revenue and are a deadweight on the country’s taxation.” FORMER DOUBTS | Last year the chamber expressed several opinions about the line, including this one:—“lt Is doubtful If there will be, even in 20 years’ time, sufficient goods and passenger traffic to enable this costly extension to yield sufficient traffic to cover interest on capital.” After hearing an address by Mr. E Earle Vaile on the railway, the chamber passed the following resolutions: “This committee is of opinion that everything should be done to make provision for the land development of this portion of the Dominion in common with other localities. “If it can be shown that the scheme is an economical one and will not be a burden on the Consolidated Fund, the chamber will give it full support.”