PUBLIC WORKS ACTIVITY

New Zealand Herald, Volume LIX, Issue 18170, 16 August 1922, Page 11

PUBLIC WORKS ACTIVITY

RECORD EXPENDITURE.

MAIN ROADS PROBLEM.

TRANSFER OF £1,250,000.

FURTHER LOAN NECESSARY. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Tuwdiy. The expenditure on public works during 1921-22 was £5,461,407, an increase of £2,320,210 on the previous year's total. The balance in the fund at the beginning of the year was £489,489, to which loan money totalling £5,388,401 was added 1 ; and other receipts were £13,199. The'balance at the end of the year was £429,682. of which only £25,346 was cash. Reviewing the work of the department in the Financial Statement, Mr. Massey said it was not possible in connection with railways to carry out the principle of concentration in its entirety, owing to unemployment throughout the country, which has necessitated the carrying-on of works in various parts to avoid the expense and dislocation which would have been caused by an endeavour to employ all the men requiring work on a limited number of works. As a result, some lines, which would have otherwise been Btopped, have been continued. On the more important lines vigorous work is being carried out, and progress satisfying anticipations has been effected. In connection with roadworks the ordinary programme has been speeded up and work done which, but for the necessity for finding employment, would not have been carried out so soon. The number of men employed has risen to about 6500, one-third of these being what are known as relief workers. The legislation prepared last year in connection with the construction and maintenance of main roads has been reconsidered. There has recently been a conference between the Government and the interests involved, and it is hoped that the difficulties which appeared will be overcome. The work of developing the back blocks is still proceeding vigorously.

Mr. Massey reviewed the progress of hydro-electric development works. . Ho said power from Waikaremoana will bo available in Wairoa very shortly. In conclusion, ho said the rate of progress and the proposals for the future are such that the present loan authorities will not be sufficient, and necessary financial proposals will be submitted in due course. He proposed to supplement the Public Works and Development Accounts by transferring £1,250,000 of the accumulated surpluses, and thus effect a saving of £25,000, including sinking fund and flotation charges.

Referring to the flotation of the last £5,000,000 loan, Mr. Maasey said that, anticipating better terms at a later date, he postponed the issue until April, financing the department's operations by temporary loans. " The result has quite justified my action. If I had borrowed two or three months earlier, the permanent annual charges would have been increased for the term of the loan by acout £26 r 000, which, over 23 years, represents an amount of £598,000. The issue was a shade above Imperial stock value at that time, thus affording the unusual spectacle of a colonial security rated higher than Imperial stock- The net return was £97' lis Ofd, after allowing for underwriting, loss of interest, brokers' commissions, etc. The cost, with redemption at 23 years, comes out at £5 3s 9d per cent., and without redemption at £5 2s 6d per cent.

DEFENCE OF DOMINION.

CONTRIBUTION TO NAVY.

INCREASE POSSIBLE IN 1023. [BX MKJCQBAr-H. —SPECIAL REPOBTER.]

WELLINGTON. Tuesday. An exposition of the Government's defence policy was given in the Financial Statement by Mr. Massey. He referred to the representation of New Zealand by Sir John Salmcmd at the Washington Conference, and remarked that it is earnestly to be hoped that the deliberations and manifold results of the conference will be a powerful factor not only in minimising the danger of future wars, but also in promoting peaoe and harmony among the nations of the earth.

"The causes of war have, however, not been removed, and, while it is imperative that our defence expenditure should be kept as low as possible, there is a limit beyond which reduction cannot be made with safety. Tins limit is governed by the ability to rapidly expand our naval and military organisation to its full effective strength in time of need, and requires the retention of the necessary machinery to enable this to be achieved.

The expenditure out of the Consolidated Fund for defence, including ordnance services and the maintenance-and training of the Territorial Force, during the financial year, amounted to £415,461. The estimated expenditure for the current year is £317,616, shewing a saving of £97,834, including an economy of £50,000 peir annum effected bv the execution of a, new contract for the supply of small aims ammunition.

The expenditure on naval defence was £418,665, including interest, £43,341,, and sinking fund oi 4 per cent., £71,807, in respect of the capital sum owing on account of H.M.S. New Zealand. This is £1,795,166, against which accrued sinking funds amounting to £931,429 are held by the Public Trustee. For the present financial year maintenance charges are estimated at £256,656, against an expenditure last year of £303,517. A reduction amounting to £46,861 has therefore been effected.

"The time has arrived when the contributions of the Dominions, whatever, form they may take, should be placed on a more satisfactory and businesslike basis," Mr. Massey continued. "If it was certain that contributions would be forthcoming from Germany on account of the enormous expenditure incurred by British countries during the wax, I would suggest that the cost of new warships should be a first charge on such payments; but, in any case, the Dominions cannot allow such a very large proportion of the total cost of the naval defence of the Empire to be carried by the taxpayers of jthe United Kingdom: to do so would be grossly unfair and unpatriotic. The countries of the Empire should contribute to the defence of the Empire, naval defence particularly, in proportion to tbeir financial ability.

'J The cost of the Chatham, with the training-ship. will be approximately £300,000 per annum. This sum counts as a contribution. The payments ,we are now making on account of H.M.S New Zealand amount to about £100.000 per annum, and if our finances will permit in the next financial year, we should make our contribution for naval defence, including the items I have mentioned, up to £500,000 per annum. This may seem small, but it will, if agreed to, be a move in the right direction and an improvement on the present position, and it ean be improved upon as time goes on and as our financial conditions permit."