COST OF WORK

Evening Post, Volume CXXIV, Issue 119, 16 November 1937, Page 10

COST OF WORK

LAST YEAR'S OPERATIONS

Dealing' wifhthe financial aspect of last year's operations the t Statement says that the gross , expenditure amounted to £12,261,215, of which £2,009,881 was expended by.other Government Departments; the recoveries in reduction of expenditure amounted to £2,288,639, of which £846300 was recovered by other Departments; the net expenditure totalled £9,972,576. of which £1,163,581 was expended by other Departments. In addition the Department collected >£ 1,199,589 from sales of electricity • and from other forms of revenue. '■ Of the net , payments totalling £ 9,972,576, £ 6,778;901 may be regarded as- expended -from loan moneys and £;3i193;675 as; expended / 'from annual taxation. ■' * "The estimated net expenditure under the General Purposes .Account for the current financial year, 1937-3 X. is £7,834,957, and arrangements are being made -with the Minister of Finance to provide the necessary funds," says the Statement. "This'is the amount shown on; the Public Works, Estimates, which also show an estimated net expenditure of £1,370,000 from the Electric Supply Account and £4,478,000 from the Main Highways Account, a total for all these accounts of £13,682,957. ; / MAIN HIGHWAYS. "The" Main Highways Board shows that the total receipts from revenue exceeded £2,300,000, which is a record to' date, and that'the total expenditure from the.Main Highways Account for the year ended March 31, 1937, on actual works "as distinct, from loan and special .charges,'.amounted to £2,400,000, which is'almost £800,000 more than was expended on similar works during the previous year. Nearly £1*400,000 was spent last year on reconstruction and improvements, including the elimination of level railway crossings; £ 900,000 on. maintenance,, and £ 106,000 on '.the; replacement of bridges. Ii addition to the foregoing, interest and loan charges accounted for £307,516j while general rate subsidies, which are paid from the Main Highways Account; totalled, £195,000. The • programme carried through last year involved the borrowing of' £853,500 for, main highways purposes. ~ _•".■;.; '•'.■■' '. '■■' "Since'-'the amalgamation of the Revenue and Construction Funds under the Main- ■ Highways ' Account, true maintenance costs have been recorded, and 'the expenditure during.. the past financial year amounted to/an' average of' £90.5. "per", mile! It is; hot possible to; compare this average with previous years by'reason of-the; fact' that • expenditure -.under the ReyenueFund was not dissected to show maintenance cosls\ separately'; from -other ' work chSrgeif to /the same Fund. In' future; however, the trend .of .maintenance costs 'will .be readily, ascertainable. "In order t'p-provide finance for the current year's, activities, it is proposed to;; allocate approximately £1,200,000 for ~ maintenancei "purposes and £2,600,000.f0r improvements and reconstruction. Of this latter sum, it is anticipated that £500,000. will be ab:sqrbed.in the.elimination of dangerous railway, levelrcrossings. A further sum -of approximately , £230,006 ,is being - proposed for expenditure this year on the .replacement of highway bridges. -. .-...';■.•.•.-; .-■•'. -,;"/-. -.■-.. "As the arterial highways are reconstructed .to modern, width- and curvature,, it is the, policy to pave those sections which are heavily trafficked. The last pavingrseason was characterised by unfavourable conditions due to the prevailing wet .weather, but, notwithstanding adverse circumstances, 254 miles of dustless- surfacing were completed, as compared;with 277 miles during the" preceding year. At March 31, 1937, the total length of paved highways was 2127 miles,- which is 17.6 per cent, of the whole main'highways system. ' "Satisfactory progress has .been made with the major programme initiated by the Government last year for the; elimination'of railway level crossings, and, .although completed projects number only fifteen; work is in progress and contracts, havd been already arranged for a further sixty-seven. Detailed proposals for art additional sixty-four schemes;.are completed or, in hind' preparatory to the commencementcf work. . •■■• . i '.■-:■■'-:.. '■ has its peculiar technical in some cases -of a very complex -nature, but the : results^to "date are vextremely gratifying.: The removal of this source of danger from our' highways will undoubtedly result in the prevehtion.fof many accidents which certainly would occur'if open crossings on highways carrying a large volume traffic were allowed to remain. '.-,. .■;■....-.' ■■ "The extent, to which main highways operations are financed by the State is shown, by the fact that during the past year approximately 94 per cent.-of the cost. of - improvements and renewals

was paid from the Main Highways Account, compared with 6 per cent, contributed by local authorities. -With regard to maintenance 82 per cent, was provided from public funds and IB per cent, by local authorities. "It is reasonable to point out that the administration of a relatively small proportion of public moneys by local authorities warrants the Government exercising a measure of control' over the work carried out on a basis more in keeping with the degree of financial responsibility which it assumes. The continued co-operation of local bodies will be welcomed, as it is appreciated that they can assist materially in the maintenance and development of . the Dominion's roading system by carrying out the functions entrusted to them. RAILWAYS. Touching'on railways, the statement says that the net expenditure under this heading for the year ended March 31 1937, was £432,112, expended as follows:— Wellington new station and yard £218,833; Wellington-Tawa Flat deviation, £10,761; Wellington-Johnson-ville electrification, £27,264; Welling-ton-Paekakariki electrification, £73,545; Christchurch new station, £10,534; Papakura-Horotiu duplication, £19,749; Plimmerton-Paekakariki duplication. £6677; Turakina-Okoia deviation, £31157; grade easements, £21,677; rail-car sheds, £10,312; minor works, £1603. Total £432,112. HVDKO-EL.ECTKICITI. "The capital invested in the electric supply systems operating throughout the Dominion totals £34,253,508, which, includes £15,125,420 of Government expenditure, and the gross revenue received for the year was £5,124,220," says the statement. After paying working costs, interest, sinking fund, and depreciation. charges, the net profit for the year under review was £570,131, as compared with £554,154 for 1936, which indicates that the electric supply business as a whole is in a healthy condition. PUBLIC BUILDINGS. "The net expenditure for last year in the various classes of buildings was:— General ' Government buildings, £58,565; Courthouses, £2655; prison buildings and works, £4621; police stations, £7149; postal and telegrapn buildings, £158,005; mental hospital buildings, £142,109; health and hospital institutions, £12,921; total, £386,025. The final Government contribution of £36,969 was made, towards the erection of the National Art Gallery and Dominion Museum building, the total subsidy paid to date amounting to £100,000. AERODROME DEVELOPMENT. ■ "The development of aerodromes and emergency landing grounds has been concentrated primarily to serve the Main Trunk routes, and a commencement made with those for the feeder services. There are now fortynine aerodromes licensed for regular operation, on twelve of which- enlage-, ment or improvement work is proceed; ing, while fifteen additional fields were under development during the year. A major undertaking has been the investigation and planning of new Royal New Zealand Air Force stations and the improvement of the two. existing stations at Hobspnville and Wigram in line= with the projected expansion, of the Royal New Zealand Air Force. Much preliminary work has been carried but and major improvements to the' flying-fields arid to technical and living accommodation >t Hobsonville and; Wigram stations have been proceeded -with. . "A-total of £143,000 was expended on aerodrome construction from the employment relief funds during the year, almost all of this expenditure being incurred during: the. early portion of the year.: From ■ the Consolidated Fund a sum of £218,000 was expended, of which £23,000 .was spent in the development, of the flying-fields on Royal New Zealand Air Force stations'and £5000 was forthcoming from the Civil Aviation vote." *