PUBLIC WORKS IN 1940-41

Press, Volume LXXVII, Issue 23401, 7 August 1941, Page 5

PUBLIC WORKS IN 1940-41

STATEMENT BY MINISTER

Allocation Of Expenditure

WAR AFFECTS PROGRAMME

(P.R.) WELLINGTON, August 6.

The effect of the decision of the Government to curtail public works in the Dominion is shown in the annual statement of the Public Works Department, presented in , the House of Representatives today by the Minister for Public Works (the Hon. H. T. Armstrong). Expenditure under the general purposes account of the Public Works Fund for the year 1940-41 amounted to £6.280,127, as against £9,238,447 for the previous year. •

That represented a reduction of £3,000,000.

The gross expenditure of the department for the year under review was £20,327,529, of which £4,267,869 was expended by Other Government departments. Recoveries in redaction of expenditure amounted to £7,317,521. Of that sum £1,362,390 was recovered by other departments. The net expenditure totalled £13,010,008, of which £2,905,479 was expended by other departments. In addition, the department collected £2,042,896 for the supply of electric energy, irrigation receipts and miscellaneous revenue.

Mr Armstrong, in his statement, mentioned the decision of the Government to curtail Public Works construction and to confine activities principally to those undertakings which had reached an advanced stage where completion should be effected and where special considerations demanded. He said: “Honourable members will appreciate that the public works organisation has not been engaged entirely upon operations normally associated with the public .works programme. The resources of the department in respect of staff, men, and material have been utilised by the Government for the prosecution of a large amount of work arising directly from the war and which has been financed from the War Expenses Account. It would be erroneous, therefore, to assume that the scope of purely public works activities

is reflected by the actual operations of the department. In order to afford a reasonable conception of the position it can be said that approximately onethird of the activities of the department over the last 12 months has been absorbed by special war work carried out at the request and no behalf of the Army, Navy, and Air Departments, the cost being a charge against the War Expenses Account. The military works carried out by my department were numerous and extensive, and comprised the design and erection of many hutments, administrative buildings, stores, and hospitals, including major institutions for the reception and treatment of returning sick and wounded, as well as other works of a special nature. The installation of water supplies, electrical equipment, drainage systems, food cooking and storage appliances, and fire-fighting and miscellaneous services also represented undertakings of some magni-

tude, particularly where large concentrations of troops were to be.accommodated. Staff Reductions “The progress of important national works the completion of which is fully justified and, indeed, necessary, has been affected by a shortage of men and material, a .condition arising from the existing world situation. At the end of the financial year the total number of men employed on all works controlled by the department was 14,797, a reduction of 4734 compared with the number at the commencement of the year. Of the 14,797 men, 3051 were employed by contractors working for the department, 1940 were employed by local bodies on public works subr sidised through the Department, leaving 9806 men paid directly by the department. Included in this latter

figure are 2877 men employed solely on defence works. The release of officers and men for military service, a large number of whom volunteered, has been such that the remaining personnel has been called upon to work under extreme pressure in order to meet the many urgent demands of the present. I mention for the information of honourable members that at the end of the year 485 members of the staff and 1912 workmen were serving with the overseas forces. Apart from the ordinary field companies of engineers, which included many public works engineers, eight specialist engineering units have been sent overseas. The majority of the officers and men of these companies were drawn from the Public Works Department; consequently it will be realised that the drain on the professional and technical staff of the department has been very severe. The Government has also released from public works a considerable number of men who were required in essential industries related to the nation’s war work. “To some extent the shortage of materials, previously obtained from abroad, has been met by the use of substitute products manufactured in New Zealand under the Government’s plan for' developing secondary industries, The main difficulty, however, has been to secure regularity in the supply of structural and reinforcing steel for essential works, with consequent unavoidable delays in time schedules. By redesigning minor proposals wher-

ever possible, the demand for imported steel has been reduced to a minimum.

Demand for Power “During the year under review the principal public works activities consisted of the continuation of projects already in hand at the outbreak of war. One of the most important programmes is that relating to the extension of the hydro-electric power supply. The demand for electric power has been increasing at such a rate that particularly in the North Island the output from additional generating units now being installed will be almost absorbed as soon as they can be brought into operation. Without the use of stand-by plants at peak periods the present North Island supply systems could not meet existing demands. The urgency of ’providing additional supply will therefore be fully appreciated, especially in view of the industrial developments which are taking place. Unfortunately, the shortage of experienced men and the uncertain delivery of machinery and equipment from overseas have delayed the completion of some extension works which have reached an advanced stage. Railway construction and irrigation schemes have been carried forward, and reasonably good progress has been achieved under the prevailing circumstances. “The erection of certain major public buildings has been continued in order to provide much-needed accommodation, and as structural operations are generally well advanced it is hoped that most of these will reach completion in the early future. Expenditure on main highways and settlement reading, which shows an appreciable reduction on the previous years’ figures, has been confined to the works already in progress or those which presented special merit and urgency. "The estimates for the current year have been framed in keeping with the expressed policy of low-level public works expenditure during the war. It will be appreciated that in respect of new proposals extensive detailed sur-

veys and investigations would be required in many cases before activities could be launched, and this factor is receiving close attention. The estimates this year include an item for rehabilitation surveys, and although at present the shortage of professional staff does not allow of much being dope in this direction it is anticipated that later in the year, when staff becomes available from the urgent national defence works now in hand, some of the required surveys will be commenced. River Control “The question of legislation to provide comprehensive measures for river control throughout the Dominion has received further consideration. Draft proposals were prepared by my department, which expressed the view that the important matter of soil conservation should be dealt with in conjunction with river control. In March last this House appointed a Select Committee to inquire into and report upon such questions relating to the protection of property from damage by floods and erosion and to the control of rivers

generally as might be referred to it by the Government, and the department’s draft proposals have been under examination by that committee. The committee has received and considered representations made by local authorities and other interested parties and has submitted important recommendations to the Government. As a result of these recommendations legislation' is being drafted for submission to honourable members. It is realised that

after the war a large number of men will be returning from overseas service who will not be able to resume immediately their former occupations or who will require to he specially trained in vocations best suited to their individual circumstances. In the interim other work may have to be provided for some of these men, and with this object in view careful consideration is being given to the selection of national development works where they, could be employed pending their rehabilitation in normal civil occupations. A comprehensive schedule of important post-war projects has been compiled, including provision for flood control and soil conservation measures, the improvement of access and transport facilities, and the resumption of construction programmes which have been suspended during the war. Expenditure Items .The major items of net expenditure for 1940-41 follow: ■ EXPENDITURE, PUBLIC WORKS FUND

Expenditure, 1940-41, Class of work.

Railways— New construction .. ~ 857,932 Improvements and additions to open lines ~ 1,072,160 Roads .. .. .. 599,013 Public buildings .. ~ 1,442,431 Lighthouses, harbour-works.

and harbour defences .. 34,354 Tourist and health resorts .. • 21,575 Telegraph extension .. .. 256,054 Departmental .. .. 49,979 Irrigation, water-supply, and

drainage ~ .. 611,038 Lands Improvement .. .. 242,958 Swamp land drainage .. .. 3,947 Small farms development .. 571,215 Native land settlement 238,583 Linen flax development ~ 245,977 Cost and discount, raising loans, etc. .. .. 32,911

Totals, General Purposes, Account ~ .. 6,280,127 Electric Supply Account (previously aid to water-power works account)— Construction , .. .. 1,704,043 Working exoenses .. 600,289 Totals. Public Works Fund .. .. 8.584,459 EXPENDITURE, OTHER VOTES, AND “ACCOUNTS £ Main Highways AccountAnnual AppropriationConstruction, reconstruction and improvements .. 1,527,776b Maintenance, repairs, and renewals .. .. 1,289,770b Administration, plant, and miscellaneous expenditure .. .. 173,371b Interest, fees, and loan redemptions .. .. • 530,365b Permanent appropriations ' (rate subsidies, interest on transfer, from Public Works Fund, etc. ) .. 314,643b Consolidated FundMaintenance. public buildings, roads, etc. .. 401,154 Plant, material, and miscellaneous services .. 174,543 Labour Department (expenditure by Public Works Department): Amounts not included above .. 13,927

Totals, other votes, and accounts v .. • • 4,425.549

Grand total of expenditure Public Works Fund and other votes and accounts for the year ended March 31, 1940 •• 13,010,008 Dealing with the source of the money extended, the Statement adds: Of the net expenditure of £13,010,008 previously mentioned, £9,299,234 may be regarded as having been expended from loan moneys (£6,247,216 General Purposes Account, £1,704,043 Electric Supply Account, and £1,347,975 Main High,ways Account), the balance, £3,710,774, being expended from loan recoveries, revenue, and taxation.