PUBLIC WORKS.

Press, Volume LXVIII, Issue 20736, 22 December 1932, Page 10

PUBLIC WORKS.

REORGANISATION AND ECONOMIES. STATEMENT BY MK COATES. [THE MESS Special Service.] WELLINGTON, December 21. Details of the economies effected and fho reorganisation carried out in the Public "Works Department were referred to by tlie Rt. Hon. J. G. Coates to-day. "it has been apparent," said Mr Coates, "that on account of the necessary reduction in the funds available for public works purposes that a heavy curtailment of this Department's activities was unavoidable and, indeed that tjho changed conditions had made imperative a general recasting of the whole public works organisation. The money voted bv Parliament for public works in recent years has been as follows (each year ending March 31st): —

39"0 .. 8,210,717 I'.'3 1 .. 8,007,779 .10.12 . (;,40.">i405 TJC:J .. 330,027 ••These figures indicate the extent to which reductions had to be made, and corresponding reductions in the personnel of the Department 'were also unavoidable. Staff Reductions. "Considerable reductions in staff have already been made, hut further retrenchment is necessary. In September, -l!K!.l, 7<31. permanent and SSI temporary officers were employed. On November Ist, 1032, these? numbers had been reduced to 050 permanent and'iWO temporary, a reduction of 10f> permanent and 542 temporary, making a total of 647 officers. This leaves a total remaining staff in the Department of 005, ami further retrenchment now in process of arrangement will reduce this number to 073. It will thus be seen that since April Ist, 1931, the staff has been reduced by 41 per cent. Certain internal reorganisations in various branches will enable additional economics to be effected, and a total reduction of staff by 50 per cent, is in siglu. iluch as one dislikes asking officers to retire, especially thoso who have given splendid service to the State in some cases over long periods, such action at the present time cannot be avoided. Tho position that must be recognised is that the smaller amount of work consequent on the restriction of loan money for public works does not warrant their retention. We must retrench; no other course is open. Saving in Administrative Costs. "The saving already made in gross administrative costs is considerable. For 1030-31 this charge was ii 507,000; for 1032-33 it will be £307,000, a reduction of £200,000. A comparison with 1019-20, when Public Works expenditure was tho lowest for the past twelve years, is illuminating. Then the Department's staff numbered 732, and the gross expenditure was £1,612,000. At that time tho Department had not taken over the maintenance and operation of hydroelectric and irrigation schemes which have since been completed. Now tho staff ig 702, excluding 221 engaged on hydro-electric operation and maintenance, and 50 on highways, and the estimated expenditure under fill votes for this year is £3,461,000, more than twice what it was in 1010-20. Furthermore, in 1919-20 tho Department collected in rcveifuo £51,600, whereas this year the estimated revenue is £830,000. This increase in revenue is largely owing to the increase in the sale of electric I>ower consequent on the coming into operation of the State's hydro-electric schemes. This fact alone indicates how conditions under which the Department works have changed. It is not now a purely spending Department, and every year the Department's receipts from capital expenditure is, as shown above, assuming large proportions. "On tho revenue side it is difficult at present to effect any great reduction in tho personnel of the hydro-electric branch doaling with maintenance and operation, but as tho major power schemes still under construction reach completion the reduction will he expedited. Varied Activities. "It; must not be assumed," continued Mr Coates, "that the Public Works Department deals only with the expenditure of loan mane)'. In 1019-20 the loan monoy expended was nearly 80 per cent, of the total expenditure, whereas tlus year tho estimate is only 59 per cei™., the balance being highways and other revenue moneys. The Department's activities are many and varied, and for this reason it is not possible to reduce boyond a certain point. For instance, in addition to its loan money expenditure on railways, roads, bridges, buildings, harbour works, etc., it administers the Tramways Act (involving the perusal and approval of plans,- the preparation of Orders-in-Council and the inspection of tramways), the electric supply regulations, and several other administrative requirements. It also deals with stroet exemptions, the legalisation of roads and Ordersun-Council, _ and proclamations arising therefrom; it inspects motor-omnibuses and passenger vehicles on behalf of the Transport Department; it reports on loan applications for the Local Government Loans Board, on applications for and the payment of subsidies to local bodies on relief works, and reports to the Unemployment Board on suggested relief works. For other Departments it arranges accommodation, it purchases stores, and undertakes lanci purchase work. It administers -" ul operates the Government's electric power schemes, irrigation works, anu other works." Contract System. lii reply to an enquiry as to whether it was proposed to adopt as a general policv for the Department the recommendation of the National E*P endlt "™ Adjustment Commission that public works be undertaken by means of outside contract, Mr Coates said that it all works were to be carried out by private contract it wouid be Possible tr> reduce the Department's staff still further, but it was difficult to see where the contract system could be used Tn many ° £ the works now 1U - pr °" will bo remembered," said Mr Prvitcs in the P ast scvera , l the Department's larger works have , iJ. + 0 outside contractors, but the U°» «•* »=«" torv and the Department m , seveial cases has had to complete tho jobs with t Jm, staff- Notwithstanding these I "riences, however, it is intended as ! policy, with the exception of % nresent partially completed worns 4 i vwSa ™t at this stage over to private contractors, that works bp undertaken hy public + 'is far as practicable. Tho conI f avstem 13 already used to a ipZible extent. The erection of | public building 8 ' the construction of