Public Works Statement

Manawatu Times, Volume XLIX, Issue 3432, 21 August 1926, Page 10

Public Works Statement

Presented to Parliament i HUGE SUM AVAILABLE FOR | DEVELOPMENT In the course of the Public Works Statement, submitted by the Hon. K. S. Williams last evening, the Minister said; —

It is not fair criticism at this stage to condemn what may now appear to be errors of the past. The extraordinary development of motor traffic has chamged the whole position, to the extent that it is necessary to investigate the question as to whether certain linos of railway should not be closed down altogether, for the reason that they cannot, under improved road conditions and resulting competition by motor traffic, pay their way. These railways in their day developed the financial resources of the district they served. That development has placed the district in a position to improve its roads to a degree enabling motorvehicles to convey farm requirements from town stores to farm, and farmproducts to town stores or main-line stations or ports. We have obviously arrived at, a stage of development where the transport requirements of a district must be studied with the utmost care, and a constructive policy adopted which will provide the most economic means of transport without duplicating expenditure. Tho operations of the Department, and therefore its expenditure, have been temporarily enlarged during tho last few weeks in order to provide work for unemployed. The unemployment problem, when it arises, is almost essentially seasonal —that is to say, it finds ids peak in the winter, when many avenues of employment arc restricted. I am not satisfied that the enlargement of the ordinary public-works activities of the Government, which should be conducted according to plan, is the proper remedy. Winter is admittedly the least suitable season in which to obtain tho best results on public works. Public works should be carried on throughout the year with a trained and regularly adherent staff. The addition oi large numbers of inexperienced and often physically capable men at a time when only trained and experienced men arc worth while is economically wrong.

It seems lo me that unemployment difficulties due to, or emphasised by, loss of seasonal occupation should be met by the provision of employment seasonably suitable. I .have been able to discover no occupation more suitable to the capacity of those usually unemployed in winter, and no avenue of expenditure more likely to give a better asset in return for expenditure involved, than reafforestation. Its advantages are these: the work is not so arduous that it cannot bo performed by any man who is willing to work; if intelligently planned and carried out the effort will result in the creation of a definite asset, an asset not only providing timber-supplies for the future, but correcting many of the evils resulting from ill-considered deforestation of the past; afforestation is definitely seasonal work, and is thus complementary to seasonal necessity in the way of employment. Railway Construction. During the last financial year a total length of 51! miles 20 chains of railway was handed over to the Railway Department for incorporation with the general railway system of the country. In addition to the lines handed over, rails have been laid on 22 miles 39 chains, and goods traffic has been carried on over a length of 52 miles, while traffic of all description has been run by the Public Works Department over 111 miles til chains, the two principal sections being between Tauranga. The Mount, and Tancatua, and between Wairoa and Waikokopu. A commencement was recently made with the work of deviating the railway at Palmerston North for the purpose of diverting railway traffic from the centre of the town and to enable modern marshalling-yards to be constructed. Work on the Hutt"railway duplication is proceeding satisfactorily. Double shifts were employed on formation work last summer, and the greater part of that portion of the work had been put in hand. When the large overhead crossing on the main Hutt road was finished the permanentway was laid, and connection established between the open and new lines. This enabled goods to bo haadlcd for factories which have been erected along the new line, and this traffic is developing rapidly. The construe-j lion of a double-track bridge, with footway, across the Hutt river is well advanced, despite delays caused by j floods. | Hxpcndi turc. The total net expenditure under all votes and accounts appearing on the! public-works estimates for the finan-j cial year ended March 31. 11)26, was; £7,495,091. Of this sum £4,615,585 was i expended out of General Purposes Ac-j count, and the balance £2,879,509, out! of special accounts. j For (he current, year (here was a | credit balance in (he account for gen-1 oral purposes at March 31, 1 926. of £526,421 ; legislative authority exislaj for raising a further £4.061,050; it. is j proposed to ask for further legislative authority lo borrow, when required, £5.000.000, thus making available for public works, general purposes, a total of £9,587.47 1. Tile estimated expenditure under (.he account for the current financial year, including life transfer of £400,000 to Main Highways Construe-1 tion Fund, is £4.898.470. i In addition to the requirements for general purposes, there are a number of special accounts for public works

with separate ways and means, total-1 line ni.S9O.SSS. From the foregoing figures it will be observed that at the end of last financial year the unexpended balance of the Public Works Fund for general purposes, plus existing and proposed authorities for raising further moneys, amounted to £9 537,471. While the balance at the same date in respect to some <Jt the more im- . portant public works, under special accounts, plus existing and proposed legislative authority to raise additional loans, amounted to £11,890,888, or a total of £21,478,359. Road - Construction. The expenditure on road-construc-tion has been steadily increasing from year to year, and during last financial year it has again constituted a record for this branch of (ho Department's operations. Main Highways. The amending legislation ot last year permitted the Main Highways Hoard to subsidise maintenance of main highways to the extent of half the cost of the local authorities. Hydro-Electric I)evoli>ments. The year just «completcd represents the fifteenth year since construction qj} the Department s first hydroelectric development was commenced. The capital expenditure at March 31, 1916, the first complete year of supply, was £362,000; at March, 1921, it had grown to £1,072,000; and by March, 1926, to £5,134,000. The growth in annual revenue is also _sliown on the same graph, indicating in 1916 a total, annual revenue of £8,518, in 1921 oi £66,178, and in 1926 of £287,942 per annum. Future Developments. The completion of the largo works at Arapuni and WaiJ-aremoana. with consequent extensions to transmissionlines and sub-stations, and provision of extra plant at Arapuni, will require very heavy expenditure for the next three years. In addition to this, the growth ot load on the Hake Coleridge system is such that, rt- will apparently be necessary to make a start with the construction of an additional source of power in the South, probably within about a year’s time. These developments will call for an expenditure of at least £1,000,000 per year for the next four years; and although there is little doubt but that the hydroelectric development carried out to date has been an unqualified success, , it is doubtful if the country would be justified in continuing expenditure to* a much longer period at. this high rate. This is all the more evident when wo remember that for every pound expended by the Government on gener-ating-works, an equal or greater sum has to be expended both by the distributing supply authority and by the actual consumer before the power can be fully utilised. Mangahao Operations. This, the latest Government station, went into regular operation at the beginning of the year, and, considering the magnitude ot the initial develop, ment and the high costs ruling during the period in v/hich it was built, has had a successful initial year. The total capital expenditure to date has been £2,022,315, of which about £520,000 represents expenditure on extensions, and sub-stations which had not come into operation at the end of the financial year, and on the third dam, which is not yet complete or in operation. It is also'to be noted that a considerable portion of the expendij turc on transmission-lines and substations on the Hawke’s Ray and Wairarapa side of the range is in reality an advance part of the expenditure necessary to provide load for the Waikaremoana scheme.

The financial position may bn summarised as fololws: — £ Capital 2.022.315 Revenue 76,857 Operating-expenses .. ■ 21,865 Balance £54,992 The balance has not been sufficient to pay interest and depreciation charges, and leaves a deficiency or £67,291. The balance represents a payment of about 3.65 per cent, towards capital charges, which is considerably more than was paid by the Hake Coleridge scheme (now quite successful) >n il-s first or even second year of operation, and must be considered satisfactory. The load on the plant has developed very rapidly. The peak load to the end of the financial year was 13,960 kilowatts, but since, that date a maximum load of 18,100 kilowatts has been carried. The water-supply has been well maintained, enabling the plant to carry considerably more than its rated capacity without the third dam. To the end of the financial year it was not necessary to call on any of the connected fuel plants to carry part of the load, though since the end of the year it has been necessary to get the Wellington and Palmerston North plants to carry part of their load for a few days on two different occasions during continued dry spells with heavy loading. When the third dam is completed, which it is anticipated will be during the coming summer, the water capacity will bo considerably increased, but even then if we meet ai. exceptionally long continued dry spell it may be necessary to got assistance from Uie fuel plants for short periods. Arrangements have been made with some of our customers who have fuel plants for a supply of power to meet these conditions. Before supply was given from this plant contracts wore made with the various supply authorities requiring power, and it was a condition of such contracts that the supply authority should guarantee to take within five years the amount of power ho desire,t to be allocated to him. That the demand has exceeded the estimates of most of (he Boards is evident from the fact that in sonic cases the domaVd has already exceeded the total allocation, and the peak load on the station has already been only a very few per cent, below what the various consumers' guarantees indicated as the probable load on the station at the end of five years. Miingahao. The expenditure on this scheme has been £128,141 during the year. The main expenditure has been on completion of erection of the power-house

machinery, and on preparation work and excavation for the upper IMangahao dam. The main transmissionlines have been completed as far as Wanganui, Ongaor.ga, and Masterton, and an extension to Napier is almost complete. Sub-stations have been completed at Wanganui, Dannevirke, Mangamaire. Ungaonga, and .Masterton. and the sub-station at Napier is under construction.