PUBLIC WORKS LOAN

Evening Post, Volume CXVIII, Issue 54, 1 September 1934, Page 10

PUBLIC WORKS LOAN

MINISTER CRITICAL

UNEMPLOYMENT RELIEF

A proposal by Sir William HallJones that the Government should raise a loan of £5,000,000 for the purpose of pursuing a public works policy mainly with the object of completing the unfinished railway lines of the Dpminion was criticised by the Minister of Education in tho Legislative Council yesterday during the debate on tho second reading of the Imprest Supply Bill (No. 2). .

Sir William Hall-Jones suggested that in addition to the completing of the Napier-Gisborno line, tho Government, might finish tho South Island main trunk. Both works would absorb a largo number of men who could bo employed for a full week at a reasonable rato of pay. Ho also advocated laud settlement as a means of absorbing the unemployed. Many of tho men who had been settled while he was; in the Ministry were now wealthy farmers. They had started on public works, and had acquired a fondness for country life. The Government had given them a chance to take up land and they had mado good. The unemployment tax had realised almost £,4,500,000 last yoar, but they could still do bottor, and he suggested a £5,000,000 loan for public works purposes. Tho cost of tho loan at 4 per cent, would be something like £200,000 per annum, and many of those who could ill afford the unemployment tax could- be relieved of their burden. , INCREASINa THE DEBT. In reply, Mr. Masters said that tho borrowing 'of £5,000,000 for public works might provide an easy way out of the unemployment problem, but ho did not think it would be a wiso policy to pursue. It was like a man trying to lift himself up by the strings of his boots. If they had adopted this suggestion instead -of raising unemployment taxation, the Public Debt would today bo £20,000,000 greater than it was and they would have.had an additional interest bill of £800,000. The debt would have remained with them and posterity would have had to shoulder an additional liability. Furthermore, it had been shown by investigations that the completion of tho unfinished railways would mean that the State would have to bear tho loss on the operating costs as well as the interest on tho loans moneys which had been used in tho construction of the lines. Surely such a policy was not a prudent one. It had been shown by the 1930 Commission of which ho was a member that the loss on the branch lines of New Zealand was £750,000 per annum, and some of' them, were losing as much as £3000 per mile. Ho was not in favour of any construction work that did not. increase the productivity of the country or add to its capital value, and said that it was better to meet the cost of unemployment out of taxation. During the time that Sir William Hall-Jonea was a member of the Ministry there was a great deal of country to be opened up, and railways were ii ecessary for that purpose. He did not think it could be shown today that any parts, of the Dominion would be opened up by the construction of new. lines. '.'■■* Tho Minister drew the attention of the council to tho announcement in the Budget that it was proposed to construct new administrative blocks of buildings to house Government Departments in Wellington. Tho Government was paying a largo amount per^aunum in rentals and tho erection of tho new buildings would mean a saving to.the State. At the samo time the construction work would absorb a large number of the unemployed. The Bill was put through all stages and passed, and the Council adjourned until Wednesday next.