PUBLIC WORKS.

Auckland Star, Volume LXVI, Issue 213, 9 September 1935, Page 8

PUBLIC WORKS.

RATES OF EXPENDITURE. The expenditure of the P:iblic Works Department was heavily cut down when the depression set in. In 1930-31,.when borrowing was still having its effect in swelling the figure the programme of public works cost £9,307,000. Two years later the amount was reduced below two millions. Since then there has been aii increase until to-day the expenditure is. at the rate of between four and five millions annually. Three years ago a graph of annual public works expenditure in relation to the population of the Dominion was prepared for the National Expenditure Commission. It showed a high peak in 1575, when Sir Julius Vogel was launching his borrowing scheme; then there was a steep drop, which was halted three years later, T>ut continued its downward course again in the early 'eighties. The leanest years were from 1890 to 1896. Then, with the easing of the depression expenditure began increase, and until the outbreak of the war the annual cost of public works fluctuated around two millions. In 1919 a steep rise began, and the Public Works Department was soon spending as much as six or seven millions a year. For nearly 10 years expenditure was around this level. Strong comment was made by the National Expenditure Commission on the borrowing activities of the Department, and it was s.tated in the commission's report that a mistake had been made in not depending to a greater extent on revenue for works of a developmental. nature. Unemployment Financed by Taxes. In contrast with this expenditure of loan-money, the Unemployment Board's activities for several years have been financed entirely out of taxation. So. far not , one penny has been added to the debt of the -country. -;. The possibility of a revival in borrowing on a moderate scale envisages an expansion of public works for employment purposes. Interest rates, which are now around 3J per cent, are- mentioned as exceptionally favourable for loan-raising.