PUBLIC WORKS

Manawatu Standard, Volume LXI, Issue 193, 17 July 1941, Page 6

PUBLIC WORKS

NATIONAL DEVELOPMENT. ESTIMATE OVER £20,000,000. Jn order that members and tl’ c public generally may bo in a position to appreciate the financial implications involved in national development activities it is proposed to introduce legislation this year authorising tiie setting up of a National Deyelopmon Loans Account, in which will be recorded all loan moneys raised for such purposes and from which the tunas required bv the various departments concerned will be drawn, says tne Financial Statement. 'ln such an account will be recorded that part o the capital transactions of the fata e which are expended from loans, an tho position will be much easiei 0 follow than the present system of recording tho borrowings in separate accounts for each of the various activities concerned. Moreover, the teim “public works” as popularly known m the past described accurately the puiposes of the greater portion or the State’s loan expenditure, but is misleading as representing present-day activities where the older type ot pub ic works have necessarily declined in importance and given place to developmental expenditure in connection with primary and secondary- industries. National development works include the capital works of some eleven dinerent departments of State— namely, Public Works, Railways, Education, Post and Telegraph, Lands and Survev, Native, Industries and Commerce, Mines, State Forests, Iron and Steel, and Housing. Of these, the Public Works Department has, of course, the largest share, and its total loan allocations are £5,816,000, while the remaining £7,134,000 of tho year’s loan proposals is distributed among the other ten departments, making a total loan requirement of £12,950,000. In addition to this a further £7,660,000 will be available from revenues of these developmental activities, thus making the national development programme for the year £20,615,000. In accord with Government policy, tho public works allocation has been reduced this year. Certain classes oi developmental works have had to be maintained however, such as housing, where the shortage is still acute, or increased, as in the case of hydro-elec-tric works, where the industrial development and increased provision of houses has so increased the demand for electricity that the supply in some districts has been fully taken up, necessitating rationing at certain times. Hydro-electricity, moreover, continues to be of ever-increasing importance in the development of both primary and secondary industries, so that if the Dominion is to hold its own in the post-war era and provide suitable and remunerative employment for those demobilised from our Forces it is necessary that there should be adequate supplies of essential power. Consequently. this year’s loan allocation for hydro-electric development lias been increased to £1,987,000, as compared with last year’s, loan expenditure of £1,708,000. RAILWAYS AND ROADS. The railway construction and improvements loan allocations, £757,000, represent a reduction of £1,173,000 as compared with last year’s loan expenditure, hut this substantial reduction has been offset by the use of a larger amount of revenue moneys which are available in the depreciation reserves of the Working Railways Account. The loan allocation of £607,000 for the railway construction vote will he airplied to advancing the various works in hand, particularly the NapicrGisborne and the South Island Slain Trunk lines, all of which are nearing completion and which now have strategic as well as developmental values. A loan allocation of only £150,000 will be required for railway improvements and additions, mostly for rolling stock. Tho balance required for this purpose will be provided from the depreciation reserves just mentioned. Roads and highways activities arc to be very substantially reduced this year, in pursuance of a policy of concentrating on and completing essential works only. The roads allocation lias been reduced to £350,000, as against last year’s expenditure of £599,000, ! while the loan allocation for main | highways is £950,000 as compared with Hast year’s loan outgo of £1,198,000. I As mentioned last year, land development operations arc of particular ! importance in preparing for post-war j rehabilitation. The total loan allocaj tions for the purpose for this year are j £2,140 000. practically tho same j amount as was allocated last year, and I this money is to ho applied to irrigaI tion works (£552.000), small farms I development (£388.000), lands for settlement (£450.000), native land settlement (£250 000), miscellaneous works on the land (£2OO 000), and afforestation (£300.000). A further £1,212 000 for land development operations will l>c available from revcI nuo receipts and earnings. ! HOUSING CONSTRUCTION. During the past year the Go.verni merit's policy in regard to housing lias : been vigorously pursued, and it is ; gratifying t-o know that during that : period an additional 3960 housing ; units were completed under tho direcj tion of tho Housing Department, bring the total number of new rental i unit., under the control of ihe State | Advances Corporation to 10,425. ; Further contracts have been let, and ! the number of units under cutisr.ruoi tion at the end of last year was 2444. Subject to the necessary material I aiid labour being available,* the Housj ing Construction Department will continue to operate to the fullest possible extent in ail effort to provide additional houses which arc so urgently required, particularly in ihe larger centres. Provision for a total expendi- ! turc of £4,400,000 has accordingly ! been made in the current year’s cstini- | ates, of which £3.790,000* will be fii.j aneed from loans and the ablanco Jrom ! rent receipts.

1 hose desiring to erect houses for themselves have been offered building loans by the State Advances Corporation on liberal terms, and although there has been some easing in the demand there have been granted during the past financial year 907 building loans for a total value of £889,000. The Empire’s need for linen flax supplies the reason for this year’s increased loan allocation of £600,000 for this purpose. Under an agreement recently concluded the United Kingdom Government will huv the flax produced. Irom 25,000 acres during the war period an.J one year thereafter. A schedule of prices has been agreed upon for the 1941-42 an U 1942-43 seasons.

The allocation to the Iron and Steei Industry Account has been increased to £350.000. as compared with last year’s expenditure of only £6500 owing to the necessity for some local production of steel.

The jublie buildings loan allocation is £900,000. while that for education buildings is £500.000. and any now works undertaken under both these headings are to be only those of the most urgent nature. Other minor allocations for miscellaneous services such

as lighthouse and harbour works, telegraph extension, and plant and material make up a total of £1.229 000. of which £625.000 will be met from loans.