A COATES RAILWAY

Daily Telegraph (Napier), Volume 58, Issue 171, 21 August 1929, Page 6

A COATES RAILWAY

Lecau^e tlie Nortli Island railsvay systein pays a tiifle over 4 per cent. on cost of construetion, while the South Islancl system pays a trifle ^under 1 per cent.; because the iSorth Island system returns a net revenue of £708.76 per mile of open lines, while the South Island system gives only £160.04 per mile ; it tvould be a great mistahe to suppose that ^there have been no bad railway "blunders" in the Nortb Island. One of them was the 'construetion of a railway, at the cost of some millions, in the far north of Auckland province. Every part of the North Auckland peninsula through which this line runs is within easy reach of the sea, and no ofher part of New Zealand has such an abundance of good harbours and inlets and tidal rivers. What were really wanted were good roads, not railway s, and disregard of this has brought about great loss. However, this mistake was made before Mr Coates assumed office, and whatever blame attaches is to the Massey Government. However, tbe railway we propose to say a few words about is due to Mr Coates. It is a brancb from the main line to Kirikopuni and to the Dargaville-Kaihu line. The idea put forward to justify it was that a railway outlet to the Kaihu Valley was needed. Erom this being an aecurate statement of the case, the Kaihu Valley happened to possess at the time a line connecting it with a remarkably good port. The abeged Deed for another "outlet" does not sound very convincing. Perhaps tbe faet that Mr Coates is member for the district provided with a second "outlet" is not entirely to be ignored bere. If be were convinced that its welfam demanded another line, and that'to provide it would not involve national loss, the position becomes understandable. Unfortunately national loss has occurred, and the loss will increase 3s time goes on. Tbe project committed the country to the construetion of some 31 miles of line. Of this some 13 miles has been completed, at a cost of approximately £80,000 per mile — it is tlirough diffieult country — and work on tbe remaining distance is in progress. It is hojied that this remainder will not prove quite so costly, but as to that we must "wait and see." It is estimated that the total cost will not be much more than a million and a half. Serious loss has already resulfed. We gather from tbe Year Book that the loss on the running of the portion of line already completed was €137.58 for the year 1926-27. It is possible — we should like to say "probable" — that the ratio of loss may diminish somev-hat when the iine is completed, but in any case it is clear that the interest earning power of the North Island system of lines must be substantially reduced bythe construetion of tliisunnecessary railway. Completion of the scheme involves the destruction of a good road and the construetion of another, and this when completed will enable motor traffic to compete with the railway. Taking a broad view of the situation, there are grounds for fearing that when this unnecessary line is quite completed the running losses will amount to £150,000. As interest at 5 per cent. on cost of construetion has also to be taken into account, the prospect is that for many yqars the country will have to provide for losses averaging over £8000 per annum. When we are told that there are 22 losing lines in the South Island — this does not mean lines not paying any interest on cost, but actual losses on running — and six such lines in the North Island, it will have to be remembered that the Kaihu line is one of the six. Shortly the House will have to consider Sir Joseph Ward's proposal to spencl several millions in extensive railway w*orks in the South Island, where for many years railway losses have been mounting up. When objections are raised that this will involve national loss — these have been raised already, but will be further emphasised — it will no doubt be urged that the losses cannot be on a greater scale per running mile than is the case with the Kaihu line built by klr Coates. But this will be irrelevant. It is to be hoped that the proposals in connection with South Island railway extensions will be discussed on other than "tu quoque" lines. With the national finances in the condition they are, no railway works, whether in the south or in the north, should be under taken unless rigid investigation justifies tbe conclusion that if not actual profit, no less is to be expected.