A BIG PROGRAMME

Evening Post, Volume CXXII, Issue 31, 5 August 1936, Page 7

A BIG PROGRAMME

TO COST £10,000,000

NO LOAN THIS YEAR

A : vigorous programme of public works involving an expenditure of

£10,450,000, was outlined by the Minister of Finance, who said that the moneys required for the present flnan-i cial year were available without any loan issue to the public. That, ,he .., said, was evidence that the financial! , resources of the Dominion had not been Utilised to the fullest extent. Vigorous prosecution of railway works and public buildings was promised by . the Minister. .., . ■ . j ; "Expenditure onfpublic works out ,of loan money was drastically curtailed in 1932 arid 1933, falling' from , over £8,000,000 to less than £2,000,000 [ in the space of two years," the Minister stated. "This sudden curtailment • tif public works activities undoubtedly accentuated the effects of the fall in prices, and was a material factor in ' the increase in unemployment throughj out the Dominion. Practically all >■ financial authorities agree that in times . of depression, when interest rates are low, is the time when public works ' should be expanded to relieve the economic pressure, and as soon as the Government assumed office it took immediate steps to .resume ths orderly development of the resources of the , Dominion, thereby providing full em- -.. ployment on useful works for a large , ■ number of men. As part, of the .deflationary policy which accentuated the depression the public works wage •"< rates were reduced to the low level ■■-.: of 8s a day for single men and 10s a day for' married men. Under the agreement,.recently concluded with . the Public Works men the Government has not only restored the wage-rates but has raised them to the level . of 16s a. day for both, married and single men with a five-day'week,- and in addi- ' tibn is providing various facilities '•' which will substantially improve the • standard of comfort of the men engaged upon public works. "The fact that the moneys required for this financial year for an expanded programme of' public works are avail- ' able without any loan issue to the public is in itself evidence that the financial resources of the Dominion have not been utilised to the fullest extent. The distribution of moneys following: . expenditure on public works: not. only increases the purchasing-power of. the , people directly, but supplies a stimulus to secondary' employment, which is most desirable and necessary to the „ process of recovery. ' i A FULL RETURN. : "Many of the works which have been " or will, be" placed in hand are of such a nature as to ensure a full and im- < mediate return of the annual. costs attaching' to the loan funds utilised. Into?'tHis.category fall such works -as hydro-electric extensions, erection of , postal and other office buildings,- railway^ improvements- and additions in the -more heavily trafficked localities. Other works represent an immediate and. probably. full ■ return of- costs -;■ .to r the community, but not necessarily to Government-accounts; I refer here .to works of improvement to main highways, new schools, various schemes of land development, and the "completion >of certain main lines of railway. A ''third class of works is that whichv-is undertaken now in the knowledge that a full return, direct or indijject, is notobtalriaDle"immediately■''.but. mi • full , anticipation that, the,^continuance of ~ recovery and the'normal development •;pf: the; country will bring such a return ajr.easonable term. .Such works comprise tourist roads and the development of tourist resorts, harbour works, ;;. and'-•■afforestation. is a .final '* type.Vdf-.work;, however,.which provides '■:a;greafe-.deal of employment, but for I Which a full,return, direct or indirect, v seems.'so ■ little - likely of realisation » within i a reasonable-number of years ': that it is^ considered desirable to; finance it. in the main fromHcurrent revenue.The'works of this type' are grading " and; cbiistructionalwork"on aerodromes ■~ and'lart'ding-grounds and the settlement ' pn farm lands of vinemployed workers, * and "a substantial contribution for these works is being made out of the Con- , solidated Fund. Mainly for this rea- ' son, vote 'Maintenance of Works and I 1 Services' has increased froni £145,000 '" lor last year to £1,182,000 for this year. . '! " 'THE RAItWAY PROGRAMME. , '.'-In, the, .jHTOgramme of substantial ~works to be executed by economical ,-methods, usinig local plant and equip- j ment to the full and even importing a small proportion of plant where neces-;-,sary, railway construction occupied an fimportant place. A commencement was made' some months ago on the ;• connection; between Napier and Gisborne. Operations on the incomplete * length between Westport and Inangar hua were started recently. The coni nection of the Marlborough and Cah- • terbury districts by means of . the T- South Island Main Trunk Railway-has also been taken in hand. A total of £000,000 for all such works for the 1 -current year will be provided in ' the Public Works Estimates which will be presented later in the session. ,

V ''The intended, provision of £610,700 for additions and improvements to < opened railway lines compares with a net expenditure of £292,909 last year, and will be applied in completion ■ of the new station and yards at Welling- * ton, the provision of additional rollingstock and equipment, the electrification -o" the line between Wellington and Paekakariki, including: the length to , Johnsonville, and other works. In addition, expenditure out of renewal funds of the railways upon new rolling- ,. stock, bridge renewals, and other works ' will amount this year to £1,000,000.

PUBLIC BUILDINGS. "The initiation of a; greater volume of useful building work is a policy in which the- Government is particularly interested, by reason of the great number of subsidiary industries and businesses which are affected by the increase of such activity. Furthermore, there is need and ample scope for expansion for our schools, mentai hospitals, and public buildings generally.

-.'hich at present leave much to be de-

■"Accordingly, the building- programme has been considerably expanded, the loan allocation for this year being £1,200,000 as against a net expenditure last year of £346,880. There' is a continuous demand for new post office buildings and works, and the new loan money provision for these 'purposes for this year will be £300,000, which will be supplemented to the extent of £100,000 from the post office depreciation reserve established for the purpose of renewals. Additions and extensions to schools and .erection of new buildings have been provided for to the extent of £500,000, and £400,000 has been allocated for general buildings, including large»office buildings in Auckland and Wellington, which, when confpleted, will save the payment of rentals in various private buildings .scattered through both of tnese cities.

"Concerning mental hospitals, there are at the present time in our hospitals 935 patients in excess of what is considered to be proper accommodation, a state 's£ overcrowding that calls for

immediate action. In addition, provision has to be made for an annual increase of about 250 patients. Definite steps are being taken by the Government to improve the position, avA at the present time there ?-; under construction accommodation for approximately 600 patients.

"In addition to these building acti" vitics, the Government is planning an extensive programme for the construction of houses to meet the present inadequate accommodation. The only limit to the erection of useful and necessary buildings is the number of tradesmen and the materials available. IMPROVED TRANSPORT MEANS. , "The , improvement of transport routes; in both densely and sparselypopulated areas, is one of the most important services which can be provided for the community. Roading expenditure is divided between two main accounts—the Main Highways Account providing for about 12,000 miles of roads of primary and secondary importance, and the 'roads' vote providing for a certain number of new 'tourist' roads and numerous small metalling, formation, and bridge works in outlying areas. The provision for the 'roads' vote has been set down at £765,000 out of capital funds, together with some little assistance from current revenue; £444,377 was the net expenditure last year. The main highways expenditure is estimated to reach approximately £3,05,0,000 for the current year, inclusive of certain permanent charges for interest and subsidies. The major portion of this sum will be found from .tlie petrol tax, tire tax, and other taxation revenue earmarked for the purpose.

"Drainage of swamp and other lands, irrigation Works, flood prevention and protection, and reclamation of land from the sea in suitable localities, are the principal types of activity under this heading,' whereon the net capital expenditure last year was £136,245, and for which the current year's allocation is £320,000, augmented by a substantial provision from the Consolidated Fund.for such works as are not considered justifiable projects for the expenditure of ■ loan money only. The extension of irrigation works in Canterbury is being pursued steadily, and care is being taken to ensure that the revenue from, this work for the benefit ofiprivate lands will repay the interest and other annual costs. :. HYDRO-ELECTRICITY. * , "The supply of electricity by the State'is one of the most important of public services, and.it is pleasing to state that a strong financial position is being attained, a net profit for last year of approximately £122,000 over the whole of the Government's undertakings having been gained. This profit1 automatically goes in reduction of past losses, which have how been reduced to £224,000. Last year's revenue at: £1,041,000 passed-'the million mark for the first-time. It is considered that the substantial reductions in the price of, electricity to the consumer which' have taken place during recent years as a result of the bulk supply of power by the Government warrants the extension of Government operations in this sphere. • ■ ' V

"Substantial provision will also be made for general land development arid for the settlement of unemployed workers on the land, and also for continuance of the policy of establishing Natives on suitable land. Greater activity in afforestation will be met from an increased vote for the State Forests Account. ■

"Sundry other works include the extension of telegraph and telephone systems, for which £360,000 will be allocated in the capital expenditure programme, arid also: lighthouses, harbour, works in more remote localities, ,aii.(i..ad,ditions.to. .tourists, resorts.

RADIOM3EACONS,

• "The' Government has decided to install radio 'beacons-at suitable lighthSusesion the New..'Zealand coast'for th*e<use' of ships fitted with wireless direction-finding apparatus. Two equipments will be.ordered immediately for erection iat.Baring . Head and Cape Campbell ons the eastern end of Cook Strait, ,to be 'followed by "S third for •the western end of the Strait, and two more for outlying islands marking the approach to Auckland. The programme will go • on< .continuously until all stations wheye radio beacons are necessary are equipped.

-"An arrangement has been concluded with the British Admiralty whereby a fully-equipped survey ship,' H.M.S. .Endeavour, will arrive in New Zealand next April to commence, a resurvey of the New Zealand coast line. The existing charts, contain many inaccuracies, and the information as to soundings at sea is quite inadequate for the present-day methods of navigation. All the, New -Zealand Government is asked to find towards the cost of this work is the provision of coal and, the cost of the-ship's annual survey and refit. -■■'■'~'. -• ;'•..■

OVER TEN MILLION.

"The works and development programme dealt with above, including maintenance of highways, amounts in tho aggregate to approximately £10,450,000,, made up asfollows:— Hallway construction and improve- • ment 2,350,000 Buildings ■. 1,300,000 Koada and highways 3,700,000 Land development and improvements I,'iSO,QOV Hydro-olectrlc supply 510,000 Other works <JSO.OOO Total ~ £10,430,000 "Of this total, £5,940,000 will be provided out of borrowed.moneys and the balance of £4,510,000 from revenue, the Consolidated-Fund, the Highways Account, and the Employment Promotion Fund being drawn upon for the purpose." . \