HEAVY WRITING OFF.

Auckland Star, Volume LVIII, Issue 87, 13 April 1927, Page 18

HEAVY WRITING OFF.

LOSS OF A MILLION.

EXPENSIVE DRAINAGE

SCHEMES.

ANNUAL SUBSIDY NECESSARY,

• (By Telegraph.—Special to "Star.") THAMES, this day. It has been ascertained by the Minister of Lands, that it will be necessary to write off not less than £1,000,000 on the Hajuraki, Rangitaiki, W T aihi, Hikurangi and Kaitaia drainage operations. Explaining the reason for this the Hon. A. D. McLeod stated, in the course of a lengthy speech here, that, with the advent of the Great War, which quickly brought about an increase of 50 to 100 per cent (and in some instances more) in the cost of labour, machinery, finance and other necessities for drainage undertakings, pre-war estimates went by the board. The Hauraki, Rangitaiki, Hikurangi and Kaitaia operations will have cost before the date of completion (which it is now anticipated will be in the course of the next five years) with added interest charges, not less than £2,000,000. This will he the case even if the large subsidiary expeOlitures as suggested by the Pateton»a, committe of inquiry, together with additional expenditures from time to time KFged by deputations, are not undertaken.

"With my officers," said Mr. McLeod, "I have investigated the whole position sufficiently to be able to eay that it will be neccssary to write off not less than one-half of the foregoing amount, including the amounts already dealt with in Rangitaiki, Waihi and Kaitaia. This is a large amount, but I confidently believe that the general taxpayers of the Dominion will ultimately be compensated by increased population, and production resulting from the work. The real difficulty, however, in which I find myself as Minister in charge, is the providing of large sums necessary for the speedy completion of these undertakings, and at the same time provide finance for new development work of a more or less similar nature. If I have a fault to find with my predecessors, it is that adequate provision was not made against ultimate writings-off as the works proceeded. The writing off in a short period of a million or more, consisting largely of interest accrued when a work is completed, exposes a Minister and his officers to a degree of criticism which an annual subsidy toward specified Works of, say, £80,000 or £100,000 per annum would prevent. If it is the wish of the general taxpayers that these doubtful interestearnings proposals be undertaken for the general good, then it is the duty of the Government and Parliament to see that adequate provision is made against probable losses as the works proceed. I believe, however, that, instead of one vote being made direct to the Public Works fund specified, such should be allocated as annual surpluses towards certain developmental works. This, after all, may be a detail, but it would at least let the public know eacli year how much was being set aside for special works, and to what extent the various portions of the Dominion were participating.