PM Transcripts

RAIL STNAD'. T0 T PREBt. KNFL
Sttmnb h rm ise c R. G. Men zies
Following is the ' ext of a 1. etter which I wrote
on 3rd Au~ gust to the Honourable SiLr Thomas P" Layford,
Premier of South Australia 9 on the subject of standardization
of the raiiigay betwMeen Port Pirie and Broken Hill
" Dear Sir Thomas, In your letter of 2nd April, 1 962 you invited
the Commonwealthi to consi. der approlving under the
Railway S4tan'qardizatien Agreement of-1949,-a programme_
of conversion to standard gauge of the permanent way
betwie,-n Port Pirie and iBroken Hill. You estimated
that tis o~ rogrammeq including ncoiling stock, would
costl-some f-17 million or œ-20 milIlion, and suggested
that the expenditure be spread ov er several years,
This is quite a sizable project, and th-ougha
we dr) o of course ac-cept the desirability of a standard
gauge line frcom Fort Pixie to Broken Hill, we have had
to measure the finsncisl commitment in-v olvd against
our gen~ eral. budgetary position present and prospective,
and against our1 other commitm-ants in respect-of major
works projects in the States, par-ticularly in the
field of rail ty. ansporbt, Here we have feltE we had to
pay special attention, in present circumstances, to
improvements in rail facilities whicha will permit a
significant increase in eyport earnings or a major
development of national resouirces.
My Cabinet colleagues and I have considered
closely, inj theD light of' these circumstances, your
request that th" e Commoniwealtn should provi4de the
finance to cnrry out the conversion to standard. gauge
of the permanent -way in, -the Petorborough Division,
But we do not see our w., ay to corhmit funds at present
for this projectQ, W-e are faced with a very large
deficit in the cu-r-rent year, and must tUake account of
this and of othter inescapablo demands on ou,) r taxation
and other revenue. i in this and thle coming two or three
years'But you will of couirse appreciate that our
present decision does not imp+. ly any definitivo rejection
of the Port Pirie-Broken Hll conve,, rsion work,, We
do intenOd to look again a~ t your present pr'oposal as
and when work en other railway projects to Whi! ch we
are financially commnit, 1ted i-s furvthier Ladvance-+ d..
Mearw hi le xwe-share with yKou the hoeand
belief thlat your acceptance of cur offer of finance
up to -Li ,25,000 for thea piirch-, ase of diesel engines and
oro wagons and their use on this route will not only
reduce the cost of transporctation in this area, but
will also benefit the, Scutht J! hUstLriian Railway,, s and the
pooplo Of Your State0 Yourvs sincerely,
) ROBITkT G. MENZIESO
The Ho3nourable Sir homas Payf: rd
Premier of Seutlh Ai.* stralia3
ADELATIDEO, S 0 TTE ATJS r 11 . A L IA
1 0t Augues~ t , 1