PUBLIC WORKS.

Press, Volume LXVIII, Issue 20510, 1 April 1932, Page 3

PUBLIC WORKS.

CLOSER CONTROL OF COSTS. INTERESTING EVIDENCE FROM HANSARD. (Contributed.) Willi the whole public works system of New Zealand in the melting-pot, the present time offers an jnvalual.de opportunity to so recast it as to prevent in the future any recurrence of the enormous extravagances of past years. There is no doubt that the words of Sir Joseph Ward, when speaking on the Public Works Statement in the House of Representatives on November 4th, 11127, mirrored the conditions that existed. Jle said (Hansard, volume 21.", page (Ml).— Does ther position not suggest to us the present need for a great; change! In the House of Representatives wc are becoming a sort of grand road board. Periodically we come here and ask the Government to make provision for Ihe expenditure of millions of money. Although there is not a member who is ignorant of the fact that the Government has not got the money to spend, they have the authority for over £12,10(1,000, truly a'prodigious sum of money. . . . If n local body desires to make an impression upon the Government the member for the district is asked to introduce the deputation to one of the Ministers. That sort of thing continues throughout the session until the fatal day arrives when the Public Works Statement and estimates are brought down and hou. members see the result of their efforts. Today the position is worse than ever, and wo are still hovering around like vultures around the carrion to pick out what: we can get. Comment by Mr Forbes. In the same debate, the present Prime Miuister, the JRt. Hon. G. W. Forbes, then -speaking as a private member, voiced some trenchant criticism of the system of public works. He said (Hansard, pages 032 and (333): The lion, member for Auckland Central said it would have been very much better if, instead of the work (Arapuni) being let by contract, the Public Works Department had undertaken it. I cannot subscribe to that view because wc have seen some of the results of the Public Works Department carrying out hydro-electric installations. Take, for instance, the Mangahao scheme. The estimate made in 1919 was that the cost would be £1,000,000. In 1922 it was again estimated that the work done to date had cost £1,">34,000. The actual cost of the work was £2,243,000. After an experience like that with the Public Works estimates, they do not appear to be a very good basis on which to build anything. We had an experience in Canterbury with an engineering firm employed by the Christchurch City Council to give an estimate in regard to a scheme for utilising the Waimakariri river. The firm was an American one (name given), and it made a most extensive investigation in regard to the dam and the country round about before attempting to make an estimate. It was for nearly six months boring and investigating, and it has been recognised by those who have engineering experience, that there has not been a more thorough investigation made in regard to any public work in this country. When the investigation was complete, the firm said that if a lower contract could not be secured it would do the work for 10 per cent, in addition to the amount of the estimate it had furnished. I would like to know in regard to the estimates submitted to the Minister for Public Works, and to the House, what happens when the estimates are exceeded to such an enormous extent as in the case of Mangahao. . . . When wc are asked to believe that the Department can carry out the work more cheaply than a private firm, all we can say in the light of actual experience, is that in hydro-electric work we do not .get results when it does undertake them How Costs Grow. Mr Forbes then added:— I know it has been a matter of pride almost with successive Ministers of Public Works when they get hold of the Department to be able to say, "1 have been able to beat all my predecessors in expenditure." I do not question, the ability of flic men in charge, but I do say that when the Department has a free hand for the carrying out of works without any check, it is apt to show disregard to cost. The officers say, "We do not need to go to the trouble of investigating, for wo can carry out the work even if there is a mistake, and no one will question the cost. It does not matter whether .the work costs double the amount of the estimate, no ■question .is raised." ... I have said before that I believe the time has come when wc should have a closer control of the immense expenditure on public works. At present it is left almost entirely for the Department to determine what money is to be spent. The Departmental officers bring their estimates to the Minister and he presents them to the House and no reduction is made in them. Since taking office Mr Forbes's opinion of the public works system must have been confirmed, and it is only reasonable for the country to expect that he will place-the Department on a proper business footing, thereby ensuring to the taxpayers a proper return for their money. This would be done by thoroughly investigating all proposed enterprises and entering into contracts with private enterprise for all public, works.