PUBLIC WORKS STATEMENT.

New Zealand Herald, Volume XVI, Issue 5637, 10 December 1879, Page 5

PUBLIC WORKS STATEMENT.

[BY TELEGRAPH, PKESS ASSOCIATION.] Wellington, Tuesday. The following ia the Public Works Statement ilf'ivered by the Minister for Public Works, the Hon. K. Oliver :— Sir, —On the 7th of August my predecessor, Mr. MacanJrew, made a Public* Works Statement to this Honse, in which he shortly summarised the work of the department for tho last financial year, but avowedly confined himself to such facts as were, in his opinioD, needed to accompany the application for the loan then authorised. 1 shall noir, by the permission of the House, give a brief accauat of the progress of our Public Works up to a more recunt date, and then indicate the opinion of the Government on the course which it is our duty to pursue. KAILWAYS, NORTH ISLAND. Taking the railways iu their geographical order, we begin with tho Kawakawa, that being the most Northern. The first section of this lino has been completed, and is being used iu conveying co?l from the mine to the wharf, where the coil is put into barges and conveyed to ships lying at the deep-water anchorage, eight miles be'ow. The first contract on the Whangarei-Kamo line is within a few weeks of completion, and the work of plate laying will bo begun as soon as possible. The survey of the proposed 1 Helensville-Whangarei lliilway has now been began, and duiiuy the summer the whole of this country will be thoroughly examined. It is expected that the wharf at Helensville will be completed in about a mouth, which will provide a vpry necessary accommodation. Batueon Riverhead and Newmarket work is it: progress along the whole 22 milrs, aud should be finished in about 10 mouths. If in the same time the Newmarket junction station could be finished, railway communication between Auckland and the Kaipara waters would be completed. A reclamation contract is being carried out to obtain increased station accommodation in A uckland, and a site for railway workshops lias been bought at .Newmarket. The branch line to Hamilton has been opened for traffic, and in a very short time the southern end of the KaiparaPunui line will be liniahed within 2 or 3 miles of the confiscated boundary. Some works are being carriea ou at Grahamstown and Shortland, an,l natives are employed on a piece on anothersection. about 2 miles long, further np the Thames Valley. The worke on the Napier-Manawatu Kailway are being pushed on south of Kopua, and 64 miles are now open for traffic. Railway workshops are being built at Napier. Ninety-four miles of the Patta-Manawata Riilway are now open for traffic; from Foxton to Kai Iwi, 9 miles north of Wangamii, and a further section of 13 miies is being constructed. In a few weeks the Stratford contract on the Waitara-Patea line will be finished, and the journey from New Plymouth to Wanganui will then be an affair of one day only. Surveys are being carefully mide north of Carlysle, and this line, desirable fir stragetic and other reasons, between Waitara and New Pfymouth on the north, aud Carlysle, the port of I'ivtea, on the south, may be finished at no distaut date. The w.rks ou the Wellington Woodvillo Railway, in the Wairarapa dis.rict, are being pushed on vigorously. The contract having been abandoned, its completion i 3 being carried out by the Public Works engineers These works, and the formation of the Grey town branch, are so well advanced that the line may be open for traffic as far as the latter place early in February. The railway wharf at Wellington and the workshops at Petone are drawing near completion. Machinery for the latter has arrived,aud willshoi tly be placed in position, giving facilities for repairs a-j well as for the economical manufacture of many articles at present bought at a high rate. Surveys of the Foxton enJ of the Welling-ton-Foxton line are proceeded with, and some work has beeu iljiw near Wellington by day labour over a leugth of nearly five miles. MIDDLE ISLAND. The original public works scheme for the Middle Island was finished in the last financial year, communication by rail being established between Ohristcnurch and Invercargill. The western railways in Southland, however, tho construction of which was taken over from the Provincial Government and some small extensions of the General Government lines, are not yet complete. With the exception of the River-ton-Orepuki branch, these will all be finished during this financial year. A connection is being made on the Nelson and Foxhill line with the Port at Nelson, and inland an extension of 3 miles from Foxton is in progress. The Picton and Blenheim line is bsing carried into the to"vn of Blenheim. The harbour works at Greymouth, which may ba regarded as an adjunct to the railway system, seem, as far a3 they have b* en completed, to answer the purnoae for which they were intended. From the manager's report it would seem that the employment of a dredgo materially facilitated the work and reduced the cost of these improvements. The works in progrese during] the year on the Amberly-Bluff Railway consisted chiefly of extensions of stations and workshops at the large towns, and increased wharfage at Port Chalmers. A large expenditure has been proposed in relaying the main line with heavier rails ; but after much consideration, it seems inadvisable to do this, as before the present rails could bo lifted most of them will be so much worn that it would not be worth while to put them on another line. Short extensions are made, or are in progress, of the Malvern, Awamokc, and Green Island branch lines. The Waipahi-Tapanui Railway contract was undertaken on terms of payment differing from the usual ones, inasmuch as no progress payments were to be required as the work went on, all payments being deferred until the line was completed. It was thought that the adoption of this method would enable us to indefinitely extend our railway system, and to obtain such, an increase of price for Crown lands in the neighbourhood of new lines, made under similar conditions, as would pay the co3t of constructing. I grieve to say these expectations have not been fulfilled. The works, which were pushed on with great vigour for some tiuie,are now almost entirely suspended, aud the contractors have stated their inability to finish their contract without progressive payments made to them. RAILWAYS AUTHORISED LAST YEAR. Contracts were let almost to the full extent of the votes, to nearly all the lines authorised last year, and in several cases the votes were largely exceeded. Sections were let by piece-work and day labour, at Weka Pass and Canterbury, on tho Livingstone branch and Otago Central Railway, in Otago, and at Kaiwarra, near Wellington. On all these there were about 2300 men engaged at wages, somewhat less than current rates. It is certain that this rapidly becomes smaller as the work advances. ROADS. Certain main lines of road in the North I-land are being maintained, such as the Great South Road (Auckland), the TaurangaTaupo road, the Taupo-Napur road, and some other short lengths of road in native districts. The Government expenditure on roads and bridges in the Middle Island during last year, was comparatively small, having been almost entirely confined to

Westland and the Southern end of the Island. WATER RACES. Detailed reports up to the 30th June, on Government expenditure iu aiding mining enterprise, have already been laid before you. From these reports and the accounts o£ the financial year, I find the colony has spent in these undei takings £357,169 Os Id, exclusive of £20,234 2s Ud by way of subsidies. Of the former sum, £10.62 i 5a 3.1 has been handed ever to tho Thames County Council os a grant, with an addition of £10,000 from the vote of tho current year. It has been arranged to hand over the debt of £11,000, due to the Government from the Government to the Carrick Water-race Company, to tho County of Vincent. The total receipts from all water-races amount to £14,407 7s 10d, exclusive of £294S 0s 2d refund of subsidies and intereat tliereon, being equivalent to an average of about 1 per cent, per annum ou the outlay from the date it first became productive, a very unsatisfactory result. Still thu collateral advantages are considerable. The Ni-lsjn creek and water races worked by the Government were the means last year of obtaining 25S0uz-\ gold, and employing 700 men. COAL EXPLORATION*. The most important work of this class which has been undertaken during the past year is the examination of the coal beds of the Mokau district by Dr. Hector, who reports that the coal formation there ie of consideiab'.e extent, the outcrops having a width of two miles, and stretching from Kawhia haibour towards the upper part of tbo WaDganui River. The coal seams crop out on the Mokau River vary from 2 feet to C feet in thickness, and the quality is excellent for steam purposes, ii tona of Moliau coal having been proved by Dr. Hector's trials to do aa much as 2 tons of the best Waikato coal. In connection with a district in which coal and liuestone abound, an extensive deposit of brown homatite has been discovered by the ideological surveyors at Mount Peel, in the provincial district of .Nelson. It is 50 feet wide, and has been traced for a distance of over 2 miles. The coal measures of the Otokomairo district have also been examined as regards their relation to auriferous cements between the Woodshed Creek and Tuapcka, but no new iniues have yet been opened in this field. A new mine has been opened at Fernhill, Green Island The Kawakawa coal mine at the Bay of Islands, is undergoing steady derelopement and the coal is is rapidly acquiiing an established position in the market as a valuable steam coal. A shaft recently srunk ha? disclosed the existence of two seam?, 4 and 9 feet thick, of superior quality, and at a greater depth tliau auy previous workings, in the W'aikato River, and indications of an improvement iu the quality of the coal with increasing depth have also been shown by recent discoveries'. Many works undertaken by the Westport Colliery Company for developing the rich coalKeld of the Mount Rochfurd district, are making rapid progress, and in a few months it is expected that the market will receive supplies from this source. The further development of the principal coal mines of the colony by increasing the facilities for shipment deservts most careful consideration, as a means of fostering industry that will probably employ tho large sum of money which is at the present ti-ns sent out of the colony for the purchase of foreign coal. W.iKKISO RAILWAYS During the first few days of July heavy floods occurred in Canterbury and Otago, doing serious damage to the lines, partially suspending traffic, and causing a heavy outlay in repairs aud renewals. The permanent way is report-d to be in good working order, except one of the beach lines, which, owing to the lightness of the rails and sleepers used iu their construction, are becoming seriously impaired. A very large number of sleepers have required removal during the laat four months, aud it is worthy of note that they were chiefly American tirnbtr. These sleepers were only imported at an experiment, at a time when the pressure was great and the local supply wholly inadequate. 'J he traffic returns for July, August, and September show a considerable falling off, compared with the corresponding period of last year. No doubt this is owing to the financial depression, but much may be expected from the grain traffic of the approaching season, which bids fair to be a prosperous one. A good harvest and the revival of trade, symptoms of which we are apparent, would speedily produce happier results. 1 am glad to say that Wβ are extending the use of New Zealand coal on our railways, and after the expiry of existing contracts for the supply of Australian coal, our arrangements will erjable us to dispense to a large extent, if not altogether, with imported fuel, and save eeveal thousand pounds a year. In tho Public Works Statement, which was lately made by my predecessor, full particulars were given of the length of the railways open for traffic, the cost of construction, the gross receipts, the working expenses, and the cost of maintenance •, Considering the headlong and rapid rate at which our railways have been constructed, the uncultivated land through which large portions of ne«ily fcll of them pass, and the smallnees of the population, it is no doubt a matter for congratulation that the contributions towards interest oa the cost of construction are so large It may, however, be as well to ascertain now the account really stands : J. find that the coat of railwaj'S open for traffic at the end of the last financial year is £8,090,417 Oβ 4d, including £633,229 0a 4d for interest to date of opening. The gross traffic returns amount to £1,729,955 3s 7d, from which must be deducted £1,520,897 5s od for working expenses and maintenance, leaving £479,047 ISs, for payment of interest on the loans out of which these were made. Table £'o. 11, which will be appended to this statement when printed, shows that for the past year the receipts have been £758,096 8* 2d, and the working expenses £545,478 18s, leaving a surplus of £212,017 13j 2d. This amount represents £2 5a per cent, on the average cost of construction, leaving 2 346 per cent, to be supplied from other sources. Sir, we all believe that New Zealand is a country of such great resources that, in the course of years, even those railways which are now the farthest from paying will become remunerative. In the meantime, however, the inhabitants of the districts which have no railwaya are taxed to pay for them as well as those who inhabit more favoured places. How burdensome theee charges have become was lately shown by my hon. colleague, the Colonial Treasurer, and the duty is placed on us of considering how to make our railways pay a larger contribution towards intereat on their cost by skilful and economic management and submitting all future propotals for new railwaya to the same rigid scrutiny as private investors would make, and firmly rejecting them, unless a strong probability can he shown that they will prove remunerative. It must not, however, be forgotten that the demands of the public have forced ou the adoptiou of a more expensive mode of constructing railways and greater speed in transit than was at first intended, thus necessarily interfering with the paying charter of the undertakings. No doubt great collateral advantages are gained by the construction of railways, but after all the practical teat of usefulness really is there being or not being used. If, therefore, it is found that on any railway the traffic is so small that a great loss results from its working, it may, I

think be assumed that tither it is badly 1 managed, or that, being useful only to a few, | it ought not to have been constructed. Tβ ! quote from the statement by my prfd-cessur inIS7S: "Thediffieultyeommnuncul fromthe , moment when the Legislature repi-ale.l that cardinal condition of the Public Works policy that, in the event of the proceeds of any railway failing to meet interest and sinking fund on the cest, the property in the district should be rated to make up its deficiency. The proposal of theGovernm-nti*, as hon.inembors know, to devo:e the proceeds of eales of lands to local and colonial public works, but if this fund is to be supple mented to any great extent by additional borrowing to complete tho general acbomo of railways, there is no doubt in my mind that either those already constructed must be made to approach more nearly to a paying condition, else u system of rating the districts beneficially affected, must eventually be resorted to. Sir, we do not tliink that the proposals for the various lines of railway which are now in course of construction, have heen subjected before their adop tion to so close a scrutiny as their importance demanded. It has>, moreover, become apparent that the funds, which will ba ac our disposal for the prosecution of the e works will prove inadequate to complete them. We think that the time has come when our whole future policy w:th regard to public worksmust be reconsidered, and it Ihenis our intention to ask Parliament for authority to appoint a Royal Commission to m:ike a more full and complete iuve-tigatiou into the cost and value of the several works commence I and proposed than it would be possible for the Governni' nt to complete. Before next session of Parliament the Government hope, by means of the report of these commissioners, to bo placed in a position to make proposals to Parliament for the prosecution nf public works upon a plan carefully adapted to the circumstances of the col.my. Our efforts must now, therefore, be earnestly directed to the economical management of our railways, and amongst other means, I think the keeping tho accounts of the various sections separate and distinct, so that it may be seen what each is earning and spending, will hava the good effect of arousing emulation among the officers, as well as showing which of* tho different systems of working should be adopted. PROPOSALS F R THE J-TTURK. Sir, my predecessor has had the gratifica tion of proposing and initiating many new works of great maguitude. To me has fallen the unwelcome, task of showing that our resources are inadequate to bear the continued strain of so rapidly constructing these expensive works. Believing that to be the case, we do not intend to ask for authority to begin many new works. The fund at our disposal for tho next few years will bu only sufficient to met tho neecs-ary requirements for miscellaneous public works and for carrying on tho works already authorised at a rate proportionate to our resources and to the point at which they will be of real use to the community. Our position is briefly this. In tvspect of the £5,000,000 loan aud fie balance of £517,120, including credits, with which wo began the •ear, the positive engagements on contracts entered into, and liabilities which must be met, together with the expenditure alr>ady during the current year, will absorb £3.500,565, including £1,210,802 for land purchases, and £154,791 payable to counties iu the provincial districts of Canterbury and Otago in respect of stoppages from the surplus land revenue of those districts. If finished in tho stipulated time these works will require £2,559,0520f this amount to be paid before tha 30"h of June next, and the remainder of the liabilities, oxcopting a portion of those for laud purchases, within tho following year. The balance, therefore, which is available out of the new loan is £1,5~2,046, and the only method of adding to this for public works, in addition to receipts from land sales, is by diverting to this purpose a sum from the one of the other objects for which the loan was authorised. I havo stated generally our intentions, and tho principles nhicti we believe must guide our proposals whatover may be the opinion of the House, also the expediency of the course which we propose That course must, to a large extent, be guided by circumstances which we cannot control. It is my duty to inform the House that the understanding on which the Loan Agents are likely to obtain the £5,000,000 loan is such as will preclude our going upon the English money market for further loans for a period of three years. It is imperative, therefore, in the interest of settlement, that the expenditure of this loan should be judiciously spread over that period. Our proposals for expenditure will be placed in detail before you. I regret to state that, slthongh an earnest endeavour has been made to keep the Estimates Trithin reasonable compass, they reach a very much larger sum than hon. members "s'l probably expect. It will be seen, however, that no less a sum than £2,356,729 7s in your Estimates is for liabilities which we found in existence upon our assumption of office, and a large portion of the remainder is for works which are necessary to make available those sections already in course of construction. However much we desired to contrast the large expenditure to which tho colony is committed, we have felt bound to ask for appro priations, which we are advised will be required for the above purpose. But, ehould Parliament agree to our proposals, it will be our anxious endeavour to limit the actual expenditure during the current year considerably within the amount of the votes. I will proceed, sir, to briefly indicate the principal works intended to bo carried en during the current year : — Railways : Kawakawa—Another section is nearly ready for tendering, and it is proposed to go on immediately with the works ; its prosecution being an obligation imposed on the Government, under an agreement between the Superintendent of Auckland and the proprietors of the Kawakawa coal mine, ratified by an Act of the General Assembly. However, this work would be very desirable, developing as it will, one of the most important coal fields in the colony. Whangarei to Katno —Plane have been prepared for the second section extending into deep water, and tenders will soon be called. Kaipara to Puniu—The whole of this work is now under contract, with the exception of the station at the Ncvrniarket junction. Tenders have been received for this work and their acceptance is only awaiting the passing of tho Estimates. Tenders have likewise been received for levelling and draining the fcite at Newmarket on which it ie proposed to erect the district workshops, as soon as authority has been obtained from Parliament. Waikato to the Thames—lt is intended to construct a bridge over the "Waikato, and 3, section from Hamilton East. Orders for the bridge material will be sent to London by an early mail. Napier to Woodvillo—Tenders have been received for the platelaying on this section, south of the present teru.inue at Kopua, the acceptance of which is awaitingthepnssingof the Estimates. Wellington to Woodville. It will probably not be possible to do more this year than complete the line to Masterton ; but arrangements will be made for laying the permanent way on the Greytown branch, and tenders will bo called for the ertction of the necessary stations so as to open tho line and branch as nearly together as tho state of the work will allow. Surveye of tho oxtentunsion of the line beyond Masterton will bo proceeded with. Bunnythorpe to Woodville—A proposal has been received from the Emigrant and Colonial Aid Company to construct a portion of the main line connect-

ing the east and west railways, with the view to open the valuable timbered lands throut;b which it passes. The portion suggested is from Buanythorpa to Manawatu Gorge, and you will be aiked to give the necessary power to enable the Government and the Corporation to enter into arrangelnmts somewhat on the terms indicated in the proposal now laid on the table. Wellington to Foxton —The necessary extension of the wharf aud station at Foxton will be undertaken, and the work on the Crofton a-.ction, near Wellington, will be proceeded with by labour. The surveys now going on from Foxton will be continued to completion. A Hdo from Palmerston to join the Wellington an I Foxton lines is also being surveyed. Foxton to Oarlylc—The section from Kaiiwi t> Wattotara is under contract, and the acceptance of .1 tender for the next section to Waverly is awaiting the passing of the Estimate?. The gap of about nine miles thence to Curlyie will be surveyed and plans made ready for tendering aa soon as possible. The formation of the branch line from Greatford to Bulla and the extension of the Taonui siding through about a mile and a half of timbered land is under considerotion. Carlyle to Waitara —It is proposed to complete without the remaining sections between the port of Carlyle and Hawea, and from thence to Stratford. A portion of this line is being executed by piecework, it having become expedient to do so, to the temporary unsettlement of the ordinary avocations of some of the residents. Waikato to Taranaki—While it is not at present practicable to survey or do any work on this Hue, you wi'l be asked to grant a small vote to enable the Government to take advantage of any opportunity that may arise in that direction. [Mr. Oliver then gave detiila with respect to railway works in tho South Islands.] D STRICT RAILWATS. Hrn. members will regret to learn that nearly all the railway ci>nipanics formed under the provisions of the District Bailways Act have been compelled to suspend their operations, owing to the general financial depression, and the deFects which have been found in working those Acts. Applications have been received from most of those companies for assistance, on the ground that unless the Government assume their responsibilities, the expenditure already made will be 10-.t. Some of these branches would form useful portions <>f our railway system, and, with regard to these, the Government propose to take power to treat with such companies as have bei.'un work and are unable to complete their lines, and, in tho event of satisfactory arrangements being made, to purchase them for the colony. Aa the residents iu the district interested have shown their faith m the remunerative character of these lines, by laying themselves under obligation to submit to the rating of their properties if tho ra ; 'ways do not clear working expenses and interest on the coat of construction, it may, I think, be assumed that there is orery prospect of the lino 3 proving commercially successful. As the rating power is intended to be retained by Government, the risk will be reduced to a minimum, the Government being already liable to pay interest at 2 per cent, per annum. WATER-RACFS. The rate proposed to be taken for waterraces i 3 £39,553. This sum will be expended j"» indicated in the Estimates, on works which, while they promise to be beneficial, cannot be expected to bo directly romunerative. PROPOSALS WITH REGARD TO ROADS. I now come to our proposals with regard to roads. We lay great stress upon them, both as promoting a solution of the native difficulty in the North Island and as fosteiing permanent settlement of the country in connection with the administration of liberal land laws. Unless we steadily pursue a policy of progress by opening up the country with roads leading to our main lines of railway, as well aa in parts of the country where we are not likely to be able to establish railway communication, we can have little hope of a revival of the prosperity of past ye-.rs. This will only be attained by enlarging the area of our cultivation and affording every facility for the occupation of our lands by a far larger population than is now settled upon them. To the revival of immigration, and the encouragement of an influx of small capitalists, coupled with the active administration of our land law, we must look under existing circumstancee for a reestablishment of confidence and ■ a healthy pursuit of our industries more, perhaps, than to the extension of works of a costly character, for which tho funds may not be immediately available. The Estimates will show in detail our proposed appropriation under this head. CONCLUSION. In conclusion, sir, I have only to add that 1 should have made this Statement much earlier in the session, if there had been any certainty as to the funds which would be at our disposal. Even now 1 should have liked to defer making it for a few days, until the result of our application for the five million loan had become known to us. But the advanced period of the session, and of the year forbade any further delay. Sir, I h»ve to thank you and tho House for the patient attention which you have given me.