PUBLIC WORKS

Evening Star, Issue 21292, 22 December 1932, Page 5

PUBLIC WORKS

RECASTING OF ORGANISATION MINISTER'S REVIEW CONTRACT SYSTEM TO BE USED [SpICUL TO TUB ' Star.’l WELLINGTON, December 21. Details of the economies effected and the reorganisation carried out in the Public Works Department were referred to by the Minister of Public Works (Mr J. G. Coates) to-day. “ It has been apparent,” said Mr Coates ; “ on account of a necessary reduction in the funds available for public works purposes that a heavy curtailment of this department’s activities was unavoidable and, indeed, that the changed conditions had made imperative a general recasting of the whole public works organisation. The money voted by Parliament for public works for the year ended March 31, 1930, was £8,216,717; for 1931, £B,007,779; for 1932, £6,405,405; and for the current year ending March 31, 1933, it is £3,539,027. These figures indicate the extent to which reductions had to be made and, of course, corresponding reductions in the, personnel of the department were also unavoidable. FURTHER RETRENCHMENT. “ Considerable reductions in the staff have already been made, but further retrenchment is necessary. In September, 1931, 761 permanent and 881 temporary officers were employed. On November 1, 1932, these numbers had' been reduced to 656 permanent and 339 temporary—a reduction of 105 permanent and 542 temporary, making a total of 647-officers. This leaves a total remaining staff in the department of 995, and a further retrenchment now in process of arrangement will reduce this number to 973. It will thus be seen that since April 1, 1931, the staff has been reduced by 41 per cent. Certain internal reorganisations in various branches will enable additional economies to be effected, and a total reduction of the staff by 50 per cent, is in sight. “ Much as one dislikes asking officers to retire, especially those who have given splendid service to the State in some cases over lengthy periods, such action at the present time cannot he avoided. The position that must be recognised is that the lesser amount of work consequent on the restriction of loan money for public works does not warrant their retention. We must retrench. No other course is open. ADMINISTRATIVE COSTS. “ The saying already made in gross administrative costs is considerable. For 1930-31 this charge was £507,000. For 1932-33 it will be £307,000 a reduction of £200,000. A comparison with 1919-20, when the public works expenditure was the lowest for the past twelve years, is illuminating. Then the department’s staff numbered 732 and the gross expenditure was £1,612,000. At that time the department had not taken over the maintenance and operation of the hydro-electric and irrigation schemes which have since been completed. Now the staff is 702, ex- :/ eluding 221 engaged on hs’dro-electric operation and maintenance and fifty on highways, and the estimated expenditure under all votes for this year , is £3,461,000, or more than twice what ' it was” in 1919-20. ; Furthermore, in 1919-20 the department collected in revenue £51,600, whereas this year the estimated revenue is £830,000. This increase in revenue is largely due to' the increase in the sale of electric power consequent on the coming into operation of the State’s hydro-electric schemes. “ This fact alone indicates how the conditions under which the department works have changed. It is not now purely a spending department, and every year the department’s _ receipts from capital expenditure, as is .shown above, are assuming larger proportions on the revenue side. It is difficult at present to effect any great reduction in the personnel of the hydro-electric branch dealing with maintenance and operation, but as the major power schemes still under construction reach completion the reduction will be expedited. DIRECTIONS OF SPENDING. “ It must not, of course, be assumed,” continued Mr Coates, “ that the Public Works Department deals only with the expenditure of loan money. In 1919-20 the loan money expended was nearly 89 per cent, of the total expenditure, whereas this year the estimate is only 59 per cent., the balance being highway and other revenue moneys. The department’s activities are many and varied, and for this reason it is not possible to reduce beyond a certain point. “For instance, in addition to this loan money expenditure on .railways, roads, bridges, . buildings, harbour works, etc., it administers the Tramways Act (involving the perusal and approval of plans, the preparation of Orders in Council, and the inspection of tramways), the electric supply regulations, and several other administrative requirements. It also deals with street exemptions, the legalisation of roads, and Orders in Council and proclamations arising therefrom; it inspects motor omnibuses and passenger vehicles on behalf of the Transport Department; it reports on loan applications for the local Government Loans Board; on applications for and the payment of subsidies to local bodies on relief works; and reports to the Unemployment Board on suggested relief works for other departments. It arranges accommodation, it purchases stores, and undertakes land purchase work. It administers and operates the Government’s electric power schemes, irrigation works, and other works.” THE CONTRACT SYSTEM. In reply to an inquiry whether it was proposed to adopt as a genera] policy for the department the recommendation of the National Expenditure Adjustment Commission that public works should be undertaken by means of outside contract, Mr Coates stated that if all works were to be carried out by private contract. it would bo possible to reduce the department’s staff still further; but it was difficult to see wher.e the contract system could be used on many of the works now in progress. “ It will be remembered,” said Mr Coates, “ that in the past several of the department’s larger works have been let to outside contractors, but the results have not always been satisfactory, and the department in several cases has had to complete the jobs with its own staff. Notwithstanding these experiences, however, it is intended as a general policy, with the exception of the present partly completed works which could not at this stage be handed over to private contractors, that future works should be undertaken by public tender as far as practicable. The contract system is already used to a considerable extent in the erection of public buildings. The construction of bridges and highways, the metalling of roads, and much road formation work

are let on a contract basis, and some earthwork is done by co-operative contract, this method being necessary and particularly suitable for the unemployed.” POLICY OF DECENTRALISATION. The question was raised whether the department could be still further reduced by the adoption of a policy of decentralisation, enabling more of the department’s work to be undertaken by the local authorities. Mr Coates replied that a certain amount of the work now being carried out by the department could, of course, he handed over as suggested, but there was such a multiplicity of local bodies and their respective areas of control were so limited that it was difficult to see how economy of administration would result unless the amalgamation of many of the smaller counties w’ere first of all arranged. If larger local bodies could be established much greater responsibilities could with advantage be handed over to them. HEAD OFFICE STAFF. “ Opportunity was taken,” concluded Mr Coates, “ when the necessary staff adjustments occasioned by the recent retirement of Mr F. W. Furkert wete in hand to effect a general reorganisation of the head office staff. This mainly affects the senior advisory engineers. Formerly six senior engineers were employed. This number has now been reduced to three, including the engineer-iu-chief. Certain amalgamations of branch divisions within the head office have also been brought about which will result in a general tightening up of ■ control and economy of administration.”