PUBLIC WORKS

Auckland Star, Volume LXVII, Issue 184, 5 August 1936, Page 11

PUBLIC WORKS

COST £10,450,000.

PROGRAMME FOR YEAR

NO PUBLIC BORROWING. MORE BUILDING PLANNED. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday. A total expenditure of approximately £10,450,000 is estimated by the Minister of Finance, Mr. Nash, in tlie Public Works and development programme planned for the ensuing year. In his Budget speech to-night ne explained that this sum, which included maintenance of highways, would be made up as follows: — Railway construction and improvement £2,350,000 Buildings 1,300,000 Koads and highways 3,700,000 Land development and iniprove- „ n l on 1,550,000 Hydro-electric supply 510,000 Other works 080,000 Total f10,450,000 Of this total, £5,9*10,000 would be provided out of borrowed moneys and the balance of £4,510,000 from revenue, the Consolidated Fund, the Highways Account and the Employment Promotion Fund being drawn upon for the purpose. 'Expenditure on public works out of money was drastically curtailed in 2o„ and 1933 ' from over ±,8,000,000 to less than £2,000,000 in the space of two years," said Mr. Nash. "This sudden curtailment of public works activities undoubtedly accentuated the effects of the fall in prices, and was a material factor in the increase in unemployment throughout the Dominion. Practically all financial authorities agree that in times of depression, when interest rates are lo\v, is the time when public works should be expanded to relieve the economic pressure, and as soon as the Government assumed office it took immediate steps to resume the orderly development of the resources of the Dominion, thereby providing full employment on useful works for a large number of men. As part of the deflationary policy which accentuated the depression the public works wage rates were reduced to the low level of 8/ a day for single men and 10/ a day for married men. Under the agreement recently concluded with the public works men the Government has not only restored the wage rates but has rais(*-l them to the level of 10/ a day for both married and single men with a five-day week, and in addition is providing various facilities which will substantially improve the standard of comfort of the men engaged upon public works. Dominion's Financial Resources. "The fact that the moneys required for this financial year for an expanded programme of public works are available without any loan issue to the public is in itself evidence that the financial resources of the Dominion have not been utilised to the fullest extent. The distribution of moneys following expenditure on public works not only '■ increases the purchasing power of the I people directly, but supplies a stimulus i to secondary employment, which is most < desirable and necessary to the process 1 of recovery." I

"Many of the works which have been or will be placed in hand are of such a nature as to ensure a full and immediate return of the annual costs attaching to the loan funds utilised," said Mr. Nash. "Into this category fall such works as liydro-electric extensions, erection of postal and other office buildings, railway improvements and additions in the more heavily trafficked localities. Other works represent an immediate and probably full return of costs to the community, but not necessarily to Government accounts; I refer to works of improvement to main highways, new schools, various schemes of land development and the completion of certain main lines of railway. Aerodromes and Farms. "A third class of works is that which is undertaken now 111 the knowledge that a full return, direct or indirect, is not obtainable immediately, but in full anticipation that the continuance of recovery and the normal development of the country will bring such a return within a reasonable term. Such works comprise tourist roads and the development of tourist resorts, harbour works, and afforestation. There is a final type of work, however, which provides a great deal of employment, but for which a full return, direct or indirect, seems so little likely of realisation within a reasonable number of years that it is considered desirable to finance it in the main from current revenue. The works of this type arc grading and constructional work on aerodromes and landing grounds and' lie settlement 011

farm lands of unemployed workers, and a substantial contribution for these works is being made out of the Consolidated Fund. Mainly for this reason, the vote 'Maintenance of Works and Services' lias increased from £145,000 for last year to £1,182,000 for this year." In the programme of substantial works to be executed by economical methods, using local plant and equipment to the full, and even importing a small proportion of plant where necessary, railway construction occupied an important place, Mr. Xash added. A commencement had been made some months ago on the connection between Napier and Gisborne, and operations on the incompleted length between Westport and Inangahna had been started recently. The connection of the Marlborough and Canterbury districts by means of the South Island Main Trunk railway had also been taken in hand. A total of £000,000 for all such works for the current year would be provided in the Public Works Estimates, which would be presented later in the session. The intended provision of £010,700 for additions and improvements to opened railway lines compared with a net expenditure of £292,909 last year, and would be applied in completion of the new station and yards at Wellington, the provision of additional rolling stock and equipment, the electrification of the line between Wellington and Paekakanki, including the length to Johnsonville, and other works. In addition, expenditure out of renewal funds of the railways upon new rolling stock, bridge renewals and other works would amount this year to £1,000,000, said the Minister. State Building Operations. T.ho initiation of a greater volume, of useful building work is a policy in which tho Government is particularly inteiested, by reason of the great I number of subsidiary industries and businesses which are affected by the in- ■ crease of such activity," he added. Furthermore, there is need and ample scope for expansion for our schools, mental hospitals and public buildings generally, which at present leave much to bo desired. Accordingly, the building : programme has been considerably expanded, the loan allocation for this year i being £1,200,000, as against a net ex- t penditure last year of £346,880. There is a continuous demand for new post office buildings and works, and the new loan money provision for these purpose.* for this year will be £300,000, which will be supplemented to the extent of £100,000 from the post office depreciation leserve, established for the purpose of renewals. Additions and extensions to schools and erection of new buildings have been provided for to the extent of £500,000, and £400.000 has been allocated for general buildings, including large office buildings in Auckland and Wellington, which, when completed, will save the payment of rentals in various' private buildings scattered through both of these cities."