COST OF PUBLIC WORKS.

New Zealand Herald, Volume LXVI, Issue 20323, 2 August 1929, Page 16

COST OF PUBLIC WORKS.

SEVEN MILLIONS FOR YEAIx.

RAILWAYS ABSORB HALF. EXPEDITING CONSTRUCTION. INCREASING VOTE 60 PER CENT. [BY TELEGRAPH. —SPECIAL RETOHTER. ] "WELLINGTON. Thursday. The present programme of public works in the Dominion was reviewed by (he Minister of Finance, Sir Joseph Ward, in his Financial Statement. The net expenditure on capital works for 1928-29 was £7,659,580. The Minister stated that with a view to speeding up the construction work all round, the voto for railways-construction for this year would show an incroaso of rioro than 60 per cent, over the amount

spent last year. Stating that the programme for the year was well advanced when the Government assumed office, the Minister referred to the decisions to stop the work on the Rotorua-Taupo railway and tho Palmor«ton/ North railway deviation, repeating reasons for these decisions. Tho now system of controlling the expenditure of loan money on public works, as announced recently, was also referred to. To remedy what tho Government regarded as weaknesses in tho system the Minister said ho had/ arranged for the Public Works Estimates for this year, and in tho future, to bo sent to the Treasury for investigation before being finalised for submission to 'the House. He also detailed the new form in which the Public Works Estimates %vould appear, giving tho cost of a completed work, the expenditure to date, and how the actual cost compares with tho engineer's estimate. , How tho Money Was Spent. Tho Minister went on to refer to the expenditure during the year of £7,659,580 on capital works. The total was made up of tho following items:— X Railway construction, additions, otc. 3.179,391 Main highways and roads .. .. 1,822.922 Hydro-eloctric supply .. .. 905.500 Telegraphs and telephones .. 624,414 Public buildinHß, including schools (302.392 Irrigation, land and river works 285,800 Other public works .. .. .. 182.095 Total ■ • £".G59,550 The Minister pointed out that nearly half the expenditure was incurred on account of railways. On the actual construction of railways, including a proportion of the overhead costs of the Public Works Department, the expenditure was £1.066.454. The policy of the Government in regard to railway construction ■was to accelerate the construction work and complete the trunk lines as quickly »s possible. This was desirable from all points of view. In tho first place, some £4,440,000 had already been sunk in unopened lines, and it was only good business to get lines completed and earning revenue. In the meantime the capital sunk was a dead asset. Then, an acceleration of the construction work meant additional employment, and that was very necessary at present. Thirdly, the completion of the lines was coing to assist materially in increasing the production and trade of the country, and generally in promoting the prosperitv of the Dominion TTmompleted Railways. /Referring to uncompleted railways, the Minister said it would cost £965.000 to complete the North Auckland trunk line. Tho uncompleted gaps in the line from Napier to OicWne were estimnted to cost about £1.809.000. and the Minister said it was very desirable that the construction ■work should be pushed on as fast as possible It was estimated it would take three or four years to complete the TaranakyMain Trunk line, and fl , e eost of completion was placed at £7OO 000 The completion of the South Island Main Trunk line by bridging the gap between Wharanni and Parnassus was next dealt with. The Minister said the Government was satisfied that the construction.of this piece of line, estimated to cost about £2.3*0.090, was necessary to complete the Fouth Island system. About had already been expended on pre liminarv work, and as soon as the surveys now being made could be completed the construction work would he pushod on vigorously. " There has been much discussion ■whether this section of line will pay, but the discussion has all been on the basis of treatinc the new pipce of iino as an isolated section, instead of a necessary part of the trnnk railway system," said the Minister. " One could doubtless find many sections of the existing main lines ■which, considered as isolated sections, could be shown to be hopeless propositions as revenue-producers; yet no ono would suggest that they should not have been built. From the paying point of view the trunk lines must be regarded as a complete system, and not a series of independent units." Earthquake and Railway.

The remaining sections in the programme were those necessary to complete the lines from Nelson to Inangahua and Wostport to Inangahua. Approximately £350.000 had been spent on the uncompleted sections to the end of tho last finan cial year, and the estimated co?t of completing them was about £2.170.000 This estimate had probably Loeri upset by tho recent earthquake, the full effects of which were not yet known, and the proposed route of these lines would have to lie re examined by the engineers. In addition to railway construction there was also expended out of the Public Works Fund last year £213/0.'") for addi ♦ ions to open lines. This expenditure was for' rolline: stock, dwellings, purchase of motor-buses, additions to station build ings, and other facilities.

Out of the special account under the Railways Improvement Authorisation Act, 1914, £1,899,532 was spent on various capital works. Nearly half the amount, or approximately £900.000. was sunk in thi? new workshops ( at Ofahuhu and Petone, and additions nntl alterations to the existing workshops at Addington and Hillside. These workshops, when completed, would have cost ahout £2,450.000, ag.vnst which there would, however, ho credits amounting to. approximately £130,000 for land released for other purposes. Other heavy items were the new station and improved approach line at Auckland, the Tawa Flat deviation at Wellington, and the electrification of the Lyttclton tunnel More Money For Roads.

Tho next largest item m public works expenditure was main highways and roa-'s. which ab.<o:-1.-»' f !"'[ r.0% „r j o;i ,, moneys. I his, with the amount of £i .560.000 provided out of taxation, made ft total of approximately £3.350,000 pro virled out ol public funds for roads last financial year Of the expenditure out of loan moneys, £936/96 was expended out of the main highways const ruction .fund, mainly for the purposes of improv ing road communication between import nnt centres and to 'tourist resorts For this year the vote will be increased to about £950.000, of which £75,000 will be specially reserved for roads to outlying districts.

Hydro-electric schemes were next referred to. Ihe total capital invested in such works is £8,467,151 It is proposed to provide approximately £1.000.000 for expenditure on all construction schemes this year. Last year's expenditure on public buildings totalled £602,392, and in this respect tho erection of schools in new districts had received first consideration.