PUBLIC WORKS RESUMED

Greymouth Evening Star, 30 June 1933, Page 7

PUBLIC WORKS RESUMED

MR. COATES’S STATEMENT BIG CONTRACTS AUTHORISED [PER PRESS ASSOCIATION.] WELLINGTON, June 29. [ The Government, has decided to prot ceed with the erection of a new Post Office building at. Dunedin, and has also approved of the initiation of a ’ scheme embracing the final stages in ■ the re-arrangement of the railway facilities in Wellington. In making these announcements, Mr Coates said: ‘‘The decision to proceed ’Jwith these works is in accord with the Government’s policy in respect both to public and private developmental works throughout New Zealand. The Government has had under the closest review numerous projects, many of which, for financial reasons, havp been deferred during recent years. -It is considered that, the present time is most opportune to proceed with these two major works within, of course, the scope of the finance'available. The co-operation of the Unemployment Board in this direction will, in addition to promoting the employment of more men upon production works, tend to stimulate the building and allied trades, which have been adversely affected by the economic disturbances. This, in turn, will have a beneficial effect on industry generally. In the decision to make an immediate commencement with these works, advantage has been taken of a further factor, namely, the favourable price level upon which the constructional costs can now be computed, and the knowledge that, -whereas a rise in the price of world commodities is essential for an economic ; recovery, this, when it does come, must have the effect of increasing the final ; cost in respect of local constructional programmes. In addition to a saving in capital costs and interest charges upon the capital invested in these essential buildings, similar advantages will accrue from an arangement made ( with the Unemployment Board in , respect of the supply of labour in that . to the’extent that the taxpayers contribute towards the subsidies paid by the Unemployment Board, they will ‘ be relieved of taxation which would, ' otherwise, have been necessary over a 1 long period in interest and public debt ( redemption charges. Co-operation < with the Unemployment Board in the ’ application of its subsidy scheme to £ public buildings has not only opened i up the way towards the speedy completion of the buildings concerned and 1 their earlier use for productive ser- f vices, which constitutes economy in f initial capital costs; but it also offers j a solution to the problem of finding ( ways and means of going on with these works within the scope of the limited t funds otherwise available. Had it A been necessary to provide the whole x cost of the contemplated programme £ from loan funds, a further indefinite J period of delay would have been un- £ avoidable.’’ :

Mr. Coates said that before a final decision was reached in respect of a permanent station for Wellington, action was taken to reduce the cost to the lowest possible figure. A thorough overhaul of the original ‘plans had been made. Various modifications had been decided upon, by which the estimated cost has been reduced from £483,000 originally planned to £350,000. He stated that after making allowances for I,h e contribution which is being made by the Unemployment Board, it has been found possible to finance the balance over a. four-year period. A programme of work over that period is, accordingly, being arranged, and the necessary alterations to tho original plans now in hand. It is intended, Mr. Coates states, to let the work by contract, and it. is expected that the tenders will be called early in September next, closing towards the end of October. The work will be commenced very soon thereafter. In the meantime, the Departemnt will carry out the work of clearing a site for the building. In a supplementary statement, Mr. Coates says: The proposed Dunedin Post Office will have eight floors. It is intended, eventually, to house all of the Government offices in that city. Foundations and a retaining wall to the ground level have already been constructed. After referring to the necessity for improving the Wellington railway terminal facilities, the Minister pointed out the advantage of the electrification of the line, permitting of more efficient, hauling over the PaekakarikiTawa Flat deviation, already largely completed, including the tunnels.