THE EAST AND WEST COAST RAILWAY. Wellington July 21.

Te Aroha News, Volume III, Issue 112, 25 July 1885, Page 4

THE EAST AND WEST COAST RAILWAY. Wellington July 21.

A Ministerial statement regarding the East and West Coast Railway was read in the House this afternoon by Sir Julius Vogel. He said ;— lntelligence haß been received by cable from the delegates who went home to arrange the construction of the East and West Coast and Nelson Railway line that they have concluded an arrangement with Messrs Meiggs and Sons (a well- known firm of railway contractors and financiers), whohaveagreed in writing to construot the railway provided further concessions are granted. They ask, in addition to the land granted, a guaranteed payment of £97,000 in exceßS of working expenses per annum for 20 years, payable in London halfyearly, commencing after the railways are finished; and they state it is intended to finish them in from three to five years. I The amount of £97,000 is arrived at, because of its being 2£ per cent, on the cost, which is thus estimated : -—Actual cost of the works, £3,025,000 (which closely resembled our own estimate) ; interest during construction, £400,000 ; engineers and administration, £50,000; and expenses of under- writing £385,000, making in all £3,860,000, 1\ per cent, on which would equal (within £500) the £97,000 asked for. In considering this proposal, ifc is desirable first to compare it with one for constructing the railways ourselves. If we have to construct them ourselves by borrowing the money, we should save the £385,000, the last of the items I have mentioned. The railways would, however, cost us more for interest during construction. The £400,000, is evidently computed on tho basis of about four years occupied in the construction. But if W9 have to construct ourselves, we Bhould be very ] unlikely to do the work in less than ten ' years, and calculating interest at 4 per cent, for the mean period of five years, that would give us £615,000 as the cost of interest. Again, we should be out of the interest during construction, whilst under the present offer we pay nothing until the whole works are concluded, and then instead of paying 4 per cent, on £3,075,000, equal to £123,000, we shall be paying only £97,000. As regards the effects on the consolidated revenue, the difference i& this : In the one case we shall pay nothing until the railways are completed, and then be liable for £97,000 a year ; in the other, before the railways are completed we shall have paid out of ordinary revenue £615,000, and should have to continue to pay annually £123,000 a year. Again, as the £97,000 will only commence after the railways are constructed, we shall begin with the reduction, consequent upon the receipts in excess of worfcing expenses. It may be said, if we construct the railways they will be ours. This will only be so because we are liable for the cost as well as the interest ; in other words, we ehall have raised a loan of £3,075,000, but under the present arrangements we are liable for nothing but the £97,000 for twenty years, whilst we are to have the option of purchasing at cost price less depreciation at any time. In every way, therefore, the arrangement has much to commend it, except it might be urged the grant of land to which we are in this case pledged, but as regards this land the circumstances must be considered. It is a vast tract of inaccessible land which will be almost useless unless railways are formed. I have supposed as an alternative, we should be ready to construct the line in ten years, | but it might be the case that the line \ w.ould not be completed at the cost of the colony in much more than ten years Meanwhile, what is the use of the land ? If ifc were the property of a private individual, he would gladly give to any persons who would construct the railway half of it in alternate blocks, and that is what we have to do. The alternate blocks wo retain will b^ fivo times more valuable than the whole as it is now. Nor must we omit from consideration that whilst the line is being constructed we shall get immense receipts on the sections between Christchurch and Springfield, between Greymouth and BrunnertoD, and between Nelson and Belgrove. We propose to ask the House to consider this most important subject in committee of the whole on Friday next. We shall prepare a resolution approving of tbe proposal on the condition that after the roads are completed, and when the payment of £97 000 begins half the cost, whatever ifc may be, and ifc is not likely to exceed £60,000, for the railway 3hould at least yield 1 per cent, to begin with, should be charged to the provincial district of Canterbury north of the liangitata, and the Provincial Districts of Nelson and Westland, as well as the entire cost of maintaining the main roads between Nelson and Greymouth, and between Christchurch and Hokitika. Asregardsthemodeofimposing the charge, we propose ifc should bo done by means of a property tax imposed within the districts just mentioned. I estimate the maximum is unlikely to amount to a halfpenny in the pound, and that it will dwindle soon to very little, if anything, if the line continues open. Supposing the estimate of 1 per cent, over working expenses is correct, the colony would have to pay about £33,000 a year, and would save tho maintenance of roads that cost it now about £16,000 per annum. As regards the* three districts mentioned, the increase of property tax would yield over tbe present amount, after the expenditure of all the money, and the completion of the railways would be such that I consider they will not tequire to pay a tax of nearly so much as a halfpenny in the £ ; but, if they have to do so, they will be well able to afford it in return for the vast benefit, direct and indirect, tha railways will bring to them. In any case, they must consider that it is unlikely the colony will continue to maintain the roads in question for longer than the period of three or four years. Now, as^ regards the whole colony, the departure is of great importance. From all parts of New Zealand come up requests for railways more or less desirable. As long as provision is not made for the East and West Coast and Nelson Railways, the way is stopped to any fair extensions of other lines or to fresh routes, but if these lines be provided for, and if they are to be constructed at no cost to the colony, excepting when they are completed, and then a cost which compared with their value will be a mere trifle, the way is open to consider other lines, and the plan we now adopt will be applicable to other parts of the colony. There are other lines which we consider should be made on the responsibility of the colony —such as the main line to Auckland and its extension north, the extension of the Otago Central to the Wanaka, the extension from Hokitika to Grey ; but if Southland or Otago wish to penetrate to the We3t Coast ; if the Hakataramea or Waimate are to be further extended ; if Marlborough and Canterbury are to be connected ; if Gisborne, Tauranga, and New Plymouth are to have openings to the main line, the same plan of the districts interested providing half the annual coßt can be adopted. Mr W. F. Buokland wanted to know whether, if the matter were taken in Committee of the Whole, the debate would be reported in "Hansard." The Speaker replied that all financial discussions in Committee oftha Whole were printed.' ' '

Sir George Grey thought that notice of motion should bo given. > The Treasurer could cive notice now, and move, for going into Committee of the Whole to-morrow. He objected to the hurry. The Speaker : In that case the notice will have to be given. Sir Julius Vogel : Then I give notice that on Thursday I move that the House resolve itself into Committee of the Whole on Friday to consider this matter.