PUBLIC WORKS

Northern Advocate, 4 October 1930, Page 6

PUBLIC WORKS

MINISTER' >fi ANNUAL £TATE MENT.

OPERATIONS AND PLANS,

(Special to “Northern Advocate. - ”) WELLINGTON, This Day. In the Public Works Statement, presented to Parliament yesterday, the Minister (the Hon. AA ? . B, Taverner) said: The general position and certain aspects of policy dictated by our present circumstances may be briefly reviewed. Honourable members will perceive from a perusal of tabulations embodied in other parts of the document that public works expenditure has steadily increased. During the last financial year the total expenditure reached £7,781.000. Included in this Statement is a most interesting diagram showing, iu the form of a graph, the annual expenditure on public works since ,1872 up to the t-nd of last financial year, and also the annual expenditure per head of population for that period. It will be soon from this that, apart from the period of unusual activity during Sir Julius Vogel's rail-way-building - policy when there was a very small population in New Zealand, the expenditure from 1882 to .1020 —a period of thirty-eight years —has varied round about £2 per head of population. Since that date it has increased, and in the two years immediately following 1020 it reached £5 10s, and since then has averaged nearly £5.

Growth of Debt, A continued programme of expenditure of borrowed money on services that are not likely to prove productive will probably in the end result in a serious condition in the public finances of th. Dominion. It is not desirable that the additions to our national debt should become entirely the burden of the taxpayer for annual charges of interest and sinking fund, -but insofar as public works are unproductive such annual charges will have that effect.

In respect to external debt, ■where the interest goes out of the country, it is essential that for the expenditure of moneys borrowed abroad, the Dominion should show such increased development and productive capacity for the creation of additional taxable, wealth that the interest payments will not be found burdensome, although they may require to. bo met partly out of taxation. It is for this reason that the economic aspect of prospective railway extension must be seriously considered.

The Railways. It is not necessary to stress the fact that the Working Railways are finding it increasingly difficult to carry additional burdens. 1 desire to state the urgent necessity that exists for a complete evaluation of the lines under construction in regard, inter alia, to community value for increased settlement, increased production, and those services to the public which are not easy to' assess in terras of money. It must x lie admitted that while certain factors in the problem are definitely assessable there arc others of a tarn glide character that may be grouped under the heading.of. services and public conveniences which in prosperous times do not impress the public mind, but are serious items in the ‘balancesheet du-ring periods of. depression. 1 am convinced that such an investigation should bo our .first duty, and that upon the conclusions reached a. programme of railway construction must be largely controlled.

Causes of Increased Costs. In regard to the high cost of many of the lines at present under construction it should he remembered that, as in the case of roads, tire lines that presented no great engineering difficulties were built years ago, while those remaining are for the most part through difficult country and have to be constructed at an enormously increased cost, and the modern standard, is much higher. As illustrative of this point, it can be mentioned that the main line across the Canterbury Plains, and also other lines in similar country, "'ere contracted years ago at as low n figure as £IIBOO per mile. The lowest estimated cost of linos under construction is £20,000 per mile, and on souk' of those lino S' it is costing up to £M,(MIO per mile to provide housing accommodation for the workmen.

Whilo no one would desire to return to tlio stnrulM.pd of accommodationnnd ('ond’itions which prevailed in those days, it will bo soon that, when the •Department is faced with an annual expenditure exceeding fc!00,00i) for the purpose of housing its workmen, it lias an item of increased cost which materially adds to the financial, burden.

This aspect of the problem could with benefit receive the attention of the Select Committee of the House recent' ly set up.

in making the above statement! am not tmmindfnl. of the important part played by flic Department’s railway activities in regard lo employment, and I wish to slate that at the present moment there arc .'t.sis men so occui.''"d. and that the amount disbursed in wages during the (inancial year ended hist March, li.thn. was £7dO,O(H), to ■ohirh. o(. course, must; bo added the cost el materia]'', the overhead

charges, consist ing of supervision, inlorost, cost am) depreciation of plant, ;, ad other items, whie.h increased tlio tolai annual disbursement by a further £7011,1)1)1).

I remarked above the value, from the employment standpoint, of the. works under consideration. Taken iu conjunction with road construction and relief works, the second factor emphasised iu my opening remarks may be developed more fully. The statistical position, is as follows:

Public Works Employees. Railways construction (charged to Railway Construction Vote under control of Minister - of Public Works), 3,848.

Railway construction (Railways Improvement Authorisation Account) 435.

lEoads; Settlements roads 1,534, main highways 2,714.

Hydro-electric works, 1,447

Irrigation, 100. Waihou and Ohinemuri rivers improvement, 07.

Buildings, 63S General 220.

Relief workers, 4,939,

, 'Public Works Department total 15,960 State Forest 'Service total 1,089 Total 17,0,49 Tt is obvious that any curtailment that Parliament may find it necessary to impose under any one of those items will' throw men out, of work and add to the already considerable number of the unemployed.