THE PUBLIC WORKS STATEMENT.

New Zealand Herald, Volume XXV, Issue 9155, 10 September 1888, Page 11

THE PUBLIC WORKS STATE MENT.

The House of Representatives met on August 18, at eleven o'clock, when the Hon. Mr. Mitchelson delivered the Public Works Statement. Tho following are tho principal portions :—

The Government is distinctly of opinion that the present financial position of the colony docs not warrant undertaking any railway works other than such as will be of an immediately reproductive character, and wo have therefore decided to recommend to Parliament that, with two exceptions, only only such amounts should be voted this year as will enable us to meet the liabilities already incurred, with a small sum over for supervision and contingencies. The two exceptions are the Woodville to Palmerston Railway and the Otago Central Railway. On the Woodville to i'almerston Railway, in addition to the amount required for existing liabilities, authority will be asked for £180,000, to enable a contract to be let for the i'ohangina Bridge ; and for the Otago Central Railway, in addition to existing liabilities, an authority for £35,000 will be asked for, of which £30,000 is for the completion of the requisite bridges and other works up to and across the .Sutton stream, and the balance (£5000) for the formation of a portion of the Middlemarch section. It is proposed to ask for a vote next session for the whole balance of the loan allocation, and to then put all the works in hand which are required for the completion of this railway at such terms as will ensure their completion contemporaneously with the I'ohangina bridge and the tunnel contract, it is also intended next year to ask for a vote for the whole balance of loan allocation for the Otago Central Railway, so as to enable the line up to Middlemarch to be completed within about two years from now. The total length of railways opened on 31st March last was : in the North Island 643 miles, and in the South Island 1108 miles: total, 1751 miles. ■ There were also at that date 104 miles of railway in course of construction, of which 80 were in the North island and 81 in the South island. The total expenditure on railways, including cost of provincial lines and purchase of district railways up to .'(lst March last was £13,466,705, and the liabilities on the 31st March last £201,577, making in all 1:14,71*8,282. For railways in course of construction as a whole the amount voted last year £400,000, of which £365,449 was expended, and for this year with liabilities at end of March last amounting to £247,0-1, wo propose to ask for votes to the extent of £338,920, leaving £829,018 for future appropriation. For additions to opened lines the amount voted last year was £40,000, of which £38,277 was expended, and for the present year, with liabilities at the end of March last amounting to £15,625, we propose to ask for a vote of £65,(XX). Up to about live years ago the undertakings of th character were undoubtedly rather lavish. No separate account had until that time been kept of works done in the shape of additions to opened portions of the railways as distinct from new extensions. Towards the close of 1883, however, the matter engaged the serious consideration of the Government, and steps were taken to curtail expenditure of this class as much as possible. With that object accounts were opened in the books of the Public Works Department, in order to show exactly how matters stood, and my successor in otliee carried this reform a step further, in 1884, by bringing dow separate estimates and taking separate votes for this class of works. By this means it was possible for the first time to properly realise what was being expended from year to year upon such undertakings, and to keep proper cheek upon them, It was not, of course, possible to countermand undertakings whieli had already been entered upon, but great care was exercised to avoid any unnecessary expenditure in the future, and I can vouch for it that certainly no expenditure of this class has recently been undertaken which did not promise an immediat return for the capital invested. The vote proposed for the present year includes the sum of £25,(XX), for the purchase of a stock of permanent way, to be held in hand for working railway requirements. This is intended to be drawn upon from time to time as may be necessary to provide for requisite renewals; and as each draw is made there will be a corresponding payment of the votes for working expenses into a suspense fund, and purchases will thereafter be made out of that fund to restore the stock of rails. Thus the £25, will always be represented, partly in rails and partly in money. By this arrangement two considerable advantages will be attained. The efficient administration of the railways during the past eight years has by gradual improvement in the permanent way, structures, appliances, and organisation led to a corresponding economy in working. The total expenditure last yea was less titan that tor preceding years, and the average cost of working per mile was the lowest that has ever been. For these results there can be no doubt that the Railways Department deserve a great deal of credit, as they could only have been brought about by careful organisation and patient supervision, extending over a series ol years. .Still further improvements are expected during the current year, but it must not be supposed that economy can be indefinitely extended, as we have already arrived at fairly good results in view of the relative situations of our various lines, the character of the traffic on some of them, and the extent of the requisite renewals. Return No. 8 in the annual report oil working railways shows that the average cost of keeping the lines in order is under £70 a mile, apart from actual rebuilding of structures and bridges, purchase of new rails and sleepers, and other new works. The same return also shows that the whole cost of maintenance, including such items is only £141 per mile. Further statistics compiled on table A, show that the average gross charge per ton of traffic on the New Zealand lines is the lowest in the Australasian colonies, being only (is lOd. This fact is due not so much to our mileage rates being low as to the average distance carried being shorter in New Zealand than in the other colonies, in consequence of our numerous chief towns and ports. Be the cause what it may, however, the producers in this colony must as a whole derive an advantage as compared with the producers in other colonies from this low average rate of carriage from the place of production to a port, and the consumers in chief towns as a whole must have a corresponding advantage compared with the consumers in other colonies in the low average rate of carriage from the place of production to the place of consumption. At the same time it has to be remembered that our railways cannot make as much profit out of this lower average rate as the railways of the other colonies can make out of their higher average rate, even though they may have to carry the goods a somewhat longer distance for the average rate which they get. The reason for this is that a large proportion of the cost of performing each transaction is a consideration irrespective of the distance carried. Nevertheless, if we are not getting as large a revenue as we might do with higher rates, we gain a corresponding advantage in other ways by fostering production and industries of ail kinds. We must, however, await the growth of population before we can gain any large increase in traffic over railways which in many cases have been carried into country without sufficient population, and can't pay expenses in such places until settlement and production have advanced. ROADS. The next subject is roads of all classes. The length of roads and bridges constructed and improved out of Public Works Fund last year was—dray roads, North Island, 147 miles ; dray roads. Middle Island, 105 miles ; total dray roads, 252 miles; horse roads. North Island, 235 miles ; horse roads, Middle Island, 71 miles ; total horse roads, 300 miles ; grand total of roads of all classes, 558 miles ; bridges, North Island, 19 bridges, 1337 feet; bridges, Middle Island, 7 bridges, 779 feet: total bridge work in both islands, 26 bridges, 2116 feet. MAIN" ROADS. Under the head of " main roads" the work required to be done, which practically means the maintenance of material lines of communication passing through uninhabited districts, is being gradually reduced to the lowest possible limits; this is the more necessary as the funds available for such purposes out of public works loans are very nearly at an end. After next year, therefore, it will be necessary to provide out of the Consolidated Fund for the maintenance of such of these roads as cannot reasonably be handed over to the local bodies under the votes of last year. Twelve of these roads were provided for ; bat, in the votes proposed for this year, the number is reduced to six. Those still retained are—Oxford to Rotorua, Tauranga to Napier, via Taupo, Nelson to Tophouse, Farndale-Nelson to Westport, Greymouth, and Hokitika, Haast Pass Track and Hokitika to Christchureh, and one new item has been added—namely, for the maintenance during the present year of the roads recently constructed along the North Island Trunk Railway. The amount voted under this heading last year was £18,050, of which

£13,750 was expended, and for this year, with liabilities at the end of March last amounting to £5311, we ask for a vote of £151, and the whole of which, however, will not probably be expended. MISCELLANEOUS ROADS AND BRIDGES. For miscellaneous roads and bridges the amount voted last year was £34.500, of which £25,98!) was expended, and for this year, with liabilities, at the end of March last, amounting to £12,642, we propose to ask for a vote for £34,354. The principal items for which provision is being made this year, are: —Main road from Warkworth to Kawakawa, completing of road to Bay of Plenty, restoration of Mangere Bridge, completion of road from Napier to Murimotu, restoration of road from Lyell to Westport, bridges on road from Nelson to Reefton and Greymouth, completion of_ road through Pelorous district and Kai Valley, continuation of road from Kaikoura to Clarence, improvements in road from Christehurch to Hokitika, and bridge over the Clutha at Cromwell ; grants-in-aid, including roads under the Roads and Bridges Construction Act, subsidies to local bodies under Finance and Powers Act, and provision for work for unemployed. ROADS UNDER THE ROADS AND BRIDGES CONSTRUCTION ACT. Under the general heading of grants paid, and the subheading of roads under the Roads and Bridges Construction Act, we voted last year the sum of >10,520, with probable credits to accrue of £3000, making the net vote £7520 ; and as against this we expended, in all, £8058, and received,fin the shape of credits, £3200, leaving net expenditure £5-15. No new grants have of course been made for a long time past, so the liability of £3104 existing at the end of March last is the only claim which we have to meet to cover so much of this liability as will fall due during the current year, after allowing for credits which will come in during same period. The vote now proposed to be asked for is £'2000. SUBSIDIES TO LOCAL BODIES. Under the Local Bodies Finance and Powers Act it lias now been decided that if subsidies are to be continued they must be charged on the Consolidated Fund, and no provision has therefore been made for them in the Public Works Estimates of this session. WORK FOR UNEMPLOYED. Under the heading of work for the unemployed, the sum of £10,000 was voted for last financial year, and we propose to ask for the same amount for the current year. Of the £10,000 voted last year £5301 was expended, and we had liabilities existing at the end of March amounting to £1803. The £10,000 proposed for this year may possibly be more than will be required, but it is thought better to provide sufficiently for any emergencies which may arise. No money, however, will be expended which is not absolutely required. We have latterly been getting very fair value for the money expended on this class of work, as the men employed have been fairly good labourers, and have been engaged wherever practicable on roads in the country districts and on railways and other works of a reproductive character. The work is generally let in piece work. CONTRACTS—ROADS TO OPEN" UP CROWN LANDS BEFORE SALE, ALSO VILLAGE SETTLEMENTS. ROADS TO OPEN UP CROWN LANDS. Oil the very important work of clearing and forming pioneer roads through Crown lands preparatory to settlement, the expenditure last year was £01,488, and the vote proposed for this year is £50,000, leaving £33,512 for appropriation in succeeding years. VILLAGE SETTLEMENTS. For village homestead settlements last year the sum of £72,200 was allocated under Loan Funds to meet the then existing engagements, and of this sum £12,053 was expended during the year. There remained, therefore, on 31st arch last an unexpended balance of £00,117. Of this sum, however, only about £45,000 will be required to meet the engagements now found to be due. This will leave £15,000 clear, which we propose to ask Parliament to authorise the Government to expend oil new settlements. The vote proposed tor this year is £20,000, of which _ £12,000 is required for expenses incurred in locating, and for continuing the stipulated advances to the present settlers, and £8000 for further extension of the system if authorised to be extended as 1 have suggested, in addition to expenditure out of funds specially allocated for village settlement. The settlers have also had the advantage of its expenditure on roads in their district out of votes for roads to open up Crown Lands before sale amounting to £10,148. It will be necessary to continue to find similar work in the vicinity of many of the settlements, in order to give the settlers a chance of permanently establishing themselves. Most of the settlements have, however, been now rendered fairly accessible by roads and tracks, and the expenditure from the vote for roads to open up Crown lands for sale cannot therefore continue to be reasonably applied to this purpose. It is proposed therefore that a vote should be asked tor in the Supplementary Estimates to enable assistance to be continued, and in asking for this vote the Minister of Lands will make a statement to the House of the condition of the various settlements, and the amount of help that they severally require.

ROADS ON GOLDFIELDS. On account of roads constructed for the development of the mining industry the expenditure during the five years ending the 31st March last has been in round numbers £311,000, and of this amount about £25,000 was expended during the last year. The amounts required for the present and following year are £35,000 and £11,707 respectively, and this will exhaust the Loan Funds at present available for this class of works. The £35,000 proposed to be expended this year is required to cover liabilities at the end of March last., amounting to £13,574, and to complete roads on which large sums of money have been expended, so that they can be fully utilised. ' WATERWORKS ON GOLDFIELDS. On account of waterworks on the goldfields the expenditure during the five years ending 31st March last was, in round numbers, £32,000, of which about £1000 was expended during the past year. It is not proposed to undertake any new works of this character, but thereby to complete some of the more important works now in hand. The amount required to be provided for the present year is £755, leaving A.'220 for next year. EXPENDITURE ON ROADS OF ALL CLASSES. On account of roads of all classes, the amount voted .out of the Public Works Fund last year was £203,020 and the amount expended was £219,519. For this year, with liabilities at end of March last amounting to 20,670, we propose to ask for votes to the extent of £168,651. This will leave under the present loan allocation £151,741 available for appropriation for road works in succeeding years.

PURCHASE OF NATIVE LAND, NORTH _ ISLAND. Under the heading of purchase of native land in the North Island generally, as distinct from purchase South, of the loan for _ the North Island Trunk Railway, I find that during the year ending the 31st March last the purchase of 210,000 acres, on which large sums had previously been advanced, was completed, at a total cost of about £40,000, equivalent to about 3s Id per acre. This area includes some valuable auriferous land at Coromandel. The expenditure during last year, including £15,072 recovered from the vote for purchase of lands along the North Island Trunk Railway, was £10,587, and the balance remaining for expenditure under loan allocation last session is .£14,485. Of this amount £9000 is proposed to be voted for expenditure during the current year, leaving £5485 for next year. The object of the Government in regard to these land purchases has been and still is to use every effort to close up old transactions. On many of these in former years large sums have been paid, and it is feared in some cases thrown away. So far as time and opportunity offers the Native Land Court will be moved to award the Crown an equivalent of land for the money that has been paid, and it is hoped that substantial recovery will be made with the assistance of the legislation proposed during the current session. It is not the intention of the Government to undertake new purchases under this heading, except in special cases where it is very desirable in the public interest that the lands should be acquired, and where they can. be obtained at a reasonable rate along the North Island Trunk Railway. Coming now to land purchases out of the loan for the North Island Trunk Railway, we completed during last year the purchase of 100,000 acres at a total cost of £8,000, or about ls7dper acre. The expenditure during the year, exclusive of £15,072 repaid to the General Land Purchase Fund to recoup former advances, was £9057. Of the £100,000 taken from the North Island Main Trunk Railway Loan and set apart for the purchase of native lands along that line, the sum of £5571 still remains available, and it is proposed to be voted for expenditure during the year, and by the 31st March next as the result of the expenditure of this £100,000, it is estimated that a total area of 700, acres will have been acquired. This would mean an average price per acre of about 2s lOd. No further land purchases along this line of railway can with advantage be gone on with at present, but we propose next session to ask for authority to devote a further sum of £50,000 out of the North Island Trunk Railway Loan to this purpose, and if this is approved of by the House further very desirable land purchases can then probably be made. By that time we hope that the title to the land in Waikato district along the line of railway will be settled. The line runs through the block known as the Rohae Potae for 9 miles. This block, which contains 2,638,000 acres, has been before the Land Court for over two years, but the settlement of the title has been delayed from time to time by unavoidable adjournments. For some months past the Court has, however, been making good progress with the larger subdivisions, and it is expected that some portions adjacent to the line may soon be ia a .uoaitioa to be <lealt with.

THE PUBLIC WORKS FUND A3 A WHOLE. Taking the Public Works Fund as a whole we had available for expenditure,__from 31st March last, the sum of £2,010,371, and as against this, with liabilities at the end of March last amounting in all £471,690, we propose to expend during the present year the sum of £862,827, leaving £1,297,564 available for appropriation in succeeding years. As regards amounts which I have just stated as proposed to be expended during the present year, I should however explain that these are the amounts for which we propose to ask for votes in the _ first column of the appropriations, but it is not _ probable that quite so much will in any case be spent. In estimating the amount required for each work, it is necessary to provide for the maximum amount of liabilities which may accrue under it, but this maximum is generally only reached in practice in a few instances, the amount provided as a whole, therefore, usually turns out to be considerably greater than is actually requi-' site, and on this basis 1 estimate that the actual total expenditure during the current year may probably be kept within £750,000. That is only in round numbers about £280,000 in excess of the liabilities existing at the end of March last, and in this £280,000 is included the probable costs and charges of raising the two million loan recently floated, amounting to about £100,000. If these anticipations as to probable actual expenditure are fulfilled the amount remaining unexpended at the end of March next will be about £1,320,000. RAILWAY COMMISSIONER. On the subject of the Chief Commissioner for Railways communications with the AgentGeneral have not yet been brought to a close, but we hope to hear finally from him very shortly, and will then set up the Commission without delay. ■ CONCLUSION. I have now, sir, come to the end of my statement, and I would wish to thank the House for the patient hearing which it has vouchsafed to me. Whilst my task has not been the pleasant one of proposing an active prosecution of public undertakings such as a condition of general prosperity would demand and justify, I have at least the satisfaction of feeling that our proposals are founded on a careful and well-considered view of the necessity of the undertakings proposed, and I am at the same time coftiident that our means of securing a sound condition of affairs will be found in bringing the public works expenditure within a reasonable compass, and conducting it on a scale in proportion to the means of the colony. • _ [Copious details are given of the various works in a supplement to the Statement.]