PUBLIC WORKS POLICY

Press, Volume LXXXVI, Issue 26205, 31 August 1950, Page 5

PUBLIC WORKS POLICY

OVERCOMING ARREARS OF CONSTRUCTION

FINANCIAL AND OTHER RESOURCES

“It is evident that the Government is faced with a formidable task in endeavouring to overcome arrears of construction and to satisfy the demands being placed upon it from ajl quarters for works and buildings of every description,” said the Minister of Works (Mr W. S. Goosman) in the Ministry of Works statement presented to the House of Representatives yesterday afternoon.

“Unfortunately, many are prone to believe that these demands can be satisfied at once, but each year’s programme must be related to the physical resources available and, further, must take cognisance of the funds available to the Government for capital construction work,” said the Minister. “These factors prevent decisions being given which would be pleasing and acceptable to all sections of the community. However, I have been careful to point out the limitations, financial and otherwise, which must be placed upon the construction programme if this is fo maintain a reasonable balance with other expenditure to which the Government is committed.”.

A complete examination of the whole capital works programme was undertaken by the Ministry of Works, in association with the Treasury, very shortly after the present Government took office. The proposals of all State Departments were clpsely examined together with all other proposals involving, directly or indirectly, the expenditure of State funds. Due allowance was made for commitments made by the outgoing Government and for works already commenced. It had been found necessary to defer many works which were in themselves desirable but which could not, from a national point of view, be considered as immediately essential. The deferment of these did not mean that they would La indefinitely postponed, but that come up for annual each year’s construction and would be commenced as soon as conditions permitted. “I have found in going round the country, proposals advanced for developmental works of all descriptions put forward by local authorities and interested organisations without much consideration as to how these were to be financed. There has been in the past an undue reliance "on the central Government. So far as local' authorities are concerned J have endeavoured to point out to them that if local government in the country is to function properly local bodies must be prepared to accept greater responsibility for the works they put forward. “The Government is committed to an exceedingly heavy construction programme and in considering works which it must carry, out itself, as distinct from those of local authorities and private individuals, it is of great importance that the Government should not draw upon the limited construction potential to the detriment of these other interests. Failure to equate works rationally over the who|e field of construction to the resources available to carry them out has resulted in many difficulties confronting the country a.t the present time.”

No Major Curtailments

No curtailments of major Government undertakings commenced was contemplated. They would be pushed to completion as vigorously as resources available permitted, and a special attempt would be made to accelerate the programme of hydroelectric works with a view to bringing, as soon as practicable, the supply of electric power more in step with the demand. There were many other works which it was recognised were necessary for the proper development of the country. It was the policy of the Government to encourage people to own their own homes and increased facilities to enable them to do that had been made available. Having regard to the fact the economy of New Zealand depended in the main on primary production, the Government was anxious that more houses should be built in the rural areas and in the smaller towns and , was taking the necessary steps to ensure that an improvement of the housing position in those areas was secured. “At the same time the Government is conscious of the fact that there remains much to be done to overtake the existing acute shortage of housing accommodation in the larger centres,” he said. “The construction of State houses will be continued, but the Government hopes that, by making available to individuals and to building organisations land near the larger centres, there will be sufficient inducement for private interests to build homes instead of the Government cccepting such a heavy responsibility in this particular field.

Slum Clearance

The clearance of slums in the major cities was long overdue. It was a matter in which the Government was particularly concerned and on which discussions with local bodies had already commenced. It was intended that the State’s responsibility should be limited to financial assistance and that the planning and actual work of demolition, rebuilding, and rehousing of displaced persons should be, the responsibility of the local authorities. He was sure that the Government s intentions would have the whole-hearted support of local bodies and the general public. The activities of the Ministry of Works covered a wide and diverse field involving the expenditure of large sums of public money. In 'he post-war period it had admittedly been very difficult to estimate costs ahead and to control expenditure once works were commenced. These difficulties existed, but it was hoped that with a pro-; gramme of work more closely related to the resources available some stability in that matter could be reached and the alarming upsurge of costs arrested. “Although much of the Department’s work is carried out by contract, I feel that there is a need for further extension of this policy,” concluded the Minister. “Other major works now being undertaken by rhe Department’s own labour'force should be opened up to competition by public tender as soon as circumstances permit, and the Department’s labour force limited to that required for works of a maintenance character and to such other works which for various reasons cannot be

submitted to public tender. With this change of policy I am sure the whole resources which can be made available to the Government will be used to, greater advantage.” 1