New Post Office for Dunedin

Horowhenua Chronicle, 30 June 1933, Page 7

New Post Office for Dunedin

AND NEW SJATIQN FOR WELLINGTON. TO BE STARTED IMMEDIATELY PART OP NEW PUBLIC WORKS SCHEME. WELLINGTON, Last Night. The Government has decided to proceed with the erection of the new Post Office building in Dunedin, and has also approved the initiation of a scheme embracing the final stages in the ire-arrange-ment of railway facilities in Wellington. \ In making this announcement, Mr. Coates said the decision to proceed with these works is in accord with the Government’s policy in respect both to public apd private developmental works

throughout New Zealand. Mr. Coates stated that the Government has had under the closest review numerous projects, many of which for financial reasons had 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 and the-co-opera-This will, in addition to promoting the employment of more men upon productive works, tend to stimulate the building and allied trades which have been adversely affected by the economic disturbance. This in turn will have a beneficial effect on industry generally.

In the decision to make an immediate commencement on these works advantage has been taken of a further factor, namely, the favourable price level upon which constructional costs can now be computed and the knowledge that whereas a rise in the price of world commodities is an essential to economic recovery, this, when it does come must have the effect of increasing the final cost in respect of local and constructional programmes. In addition to saving'capital costs and interest charges upon the capital invested in these essential buildings, similar advantages will accrue from the arrangement made with the Unemployment Board in respect to the supply of labour in that-to the extent that taxpayers contribute toward the subsidies paid by the Unemployment Board they will be relieved of the taxation which would otherwise have been necessary over a long period in interest and public debt redemption charges. Co-operation with the Unemployment Board ip the application of ~ its subsidy scheme to public buildings has not only opened up the way toward a speedy completion of the buildings concerned and their earlier use for productive service, which constitutes economy in initial capital costs, but also offers a solution of the problem of finding ways and means of going on with these works within the scope’* of the limited funds otherwise available. Had it been necesasry to provide the whole cost of the contemplated programme from loan funds, a further indefinite period of delay would have been unavoidable.

Mr. Coates said that before a final decision was reached in respect to 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 and various modifications decided upon by which the estimated cost has been reduced from £483,000 originally planned to £350,000. After making allowance for the 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 ovpr that period is accordingly being arranged and the necessary alterations to the original plans arc now in hand. It is intended to let the work by contract and it is expected 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 Department will carry out the work of clearing the site for building. In a supplementary statement Mr. Coates says the proposed Dunedin Post Office will have eight floors, and it is intended eventually to house all the Government offices in that city. The foundations and retaining wall to the ground level have already been constructed. j After referring to the necessity of improving the Wellington railway terminal facilities the Minister points out the advantage of the electrification of the line permitting a more efficient hauling over the Packakariki-Tawa Plat deviation which is already largely completed, including the tunnels.