STATE SPENDING.

Auckland Star, Volume LXVII, Issue 184, 5 August 1936, Page 10

STATE SPENDING.

HOUSING PROVISION.

TRANSPORT DEVELOPMENT.

ASPECTS OF NEW POLICY,

(By Telegraph.—Parliamentary Reporter.)

WELLING TON, Tuesday

Important aspects of the Government's programme of public works relate to •housing and highways. The Minister of Finance, Mr. Nash, said the Govern-

mcnt was planning an extensive programme for the construction of houses to meet the present inadequate accommodation. The only limit to the erection of useful and necessary buildings was the number of tradesmen and the materials available.

Mr. Nash said provision was made in the Housing Act for the erection of houses, and plans were in course of preparation to provide for the construction of some 5000 houses at a cost of approximately three million pounds. It was hoped to erect some 900 houses before the end of the financial year. Finance would be available to local authorities for house building and full details of procedure would be sent to inquiring local bodies within the next few weeks. Those who saved to buy land upon which to erect their own homes would be able to borrow a large proportion of the total cost at special low rates of interest — the interest and principal being repaid by small quarterly instalments spread over a period of 40 years. An interesting innovation in the Act was a provision under which the addition of a small sum to the principal of the mortgage to cover the life of the borrower enabled the property on his death to be handed over to his widow free from all further payments, said the Minister. Improvements in Transport. "The improvement of transport routes, in both densely and sparsely populated areas, is one of the most important services which can be provided for the community," Mr. Nash continued. "Roading expenditure is divided between two main accounts— the Main Highways Account providing for about 12,000 miles of road of primary and secondary importance, and the "roads" vote providing for a certain number of new "tourist" roads and numerous small metalling, formation and bridge works in outlying areas. The provision for the "roads" vote has been set down at £705,000 out of capital funds, together with some little assistance from current revenue; £444,377 was the net expenditure last year. The main highways expenditure is estimated to reach approximately £3,050,000 for the current vear, inclusive of certain permanent charges for interest and subsidies. The major portion of this sum will be found from the petrol tax, tyre tax and other taxation revenue earmarked for the purpose." Drainage of swamp and other lantls, irrigation works, flood prevention and protection, and reclamation _ of land from the sea in suitable localities, were the principal types of activity under the heading of lands improvement, said Mr. Xash. The net capital expenditure on such works last year was £13(5.245, and the current year's allocation was £320 000, this to be augmented by a substantial provision from the Consolidated Fund for such works as were not considered justifiable projects for the expenditure of loan money only. The extension of irrigation works in Canterbury was being pursued steadily, and care was being taken to ensure that the revenue froip this work for the benefit of private lands would repay the interest and other annual costs.

Electricity and Other Works, The Minister pointed out that the supply of electricity by the was one of the most important of public services, and it was pleasing to state that a strong financial position was being attained, a net profit for last year of approximately £122,000 over the whole of the Government's undertakings having been gained. This profit was automatically used .to reduce past losses, which had now been reduced to £224.000. Last year's revenue at £1,041,000 had passed the million mark for the first time. It was considered that the substantial reductions in the price of electricity to the consumer which had taken place during recent vears as a result of the bulk supply of nower by the Government warranted (he extension of Government operations in this sphere. "Substantial provision will also be made for general land development and the settlement of unemployed workers on the land, and also for continuance of the policy of establishing natives on suitable land," said Mr. Nash. "Greater activity in afforestation will be met from an increased vote for the State Forests account. Sundry other works include the extension of telegraph and telephone systems, for which £360,000 will be allocated in the capital expenditure programme, and also lighthouses, harbour works in more remote localities, and additions to tourist resorts.

"Included in the miscellaneous works will be the installation of radio beacons for the use of ships fitted with wireless direction-finding apparatus." he said. "This is to be carried out in Cook Strait and in outlying islands marking the approach to Auckland, and will be carried out at all other stations where equipment is necessary. Arrangements have also been completed with the British Admiralty whereby a fullyequipped survey ship (IT.M.S. Endeavour) will arrive in New Zealand next April to commence a resurvey of the coastline, the existing charts of which contained many inaccuracies. All the Government will be asked to contribute toward '•he cost of this work will be the provision of coal and the cost of the ship's annual survey and refit."