WAYS AND MEANS.

Otago Witness, Issue 3890, 2 October 1928, Page 16

WAYS AND MEANS.

£ The estimated expenditure under the account for the current financial year, including the transfer of £200,000 to Main Highways Construction Fund, is 4,047,500 In addition to the requirements for general purposes, there are a number of special accounts for public works with separate ways and means. The most iirt-n 1 ’ of thoc" -irn-_

From the foregoing figures it will be observed that at the end of last financial year - the unexpended balance pf the Public Works Fund for

general purposes, plus existing and proposed authorities for raising further wz?’- < ? ne A s ’ "mounted to .... £9,889,853 While the balance at the same date in respect to some of the more important public works, under special accounts, plus existing and proposed legislative authority to raise additional loans, amounted to .... 11,043,109 Or a total of .. .. £20,932,962 RAILWAY CONSTRUCTION. V expenditure f or the last financial construction is an ha *i f the importance that is atv* c 0 ™!’ l ? 4 , 1011 of the important trunk lines on which work is in hand. Ine amount of new work carried out during the Past year is closely up to the Previous year. The total •ength on all lines under construction over which goods and passenger traffic has been run during the year is 161 miles, and these services have undoubtedly been of great service and benefit to the districts and settlers served. nz ll . 6 expenditure out of the Public works Fund amounted to £233,153 Is 7d, tor the provision of additional rolling stock, motor vehicles for road services, improvements and additions to station buildings, extension of sidings, water services, cranes, weighbridges, capstans, and turntables, train control lines and instruments addit.onal dwellings, and purchase The expenditure under “ The Railways Improvement Authorisation Act 1914 ” “^7^0 to £l -135.393, including'fhe sum oi £44,222, proportion of the cost of raising the loan. IRRIGATION AND WATER SUPPLY. In respect to new works, activities have been confined to the pushing on with the Hawkdun and Arrow schemes and to the commencement of a small extension to the leviot River scheme. On the Hawkdun scheme work has mainly consisted of rac ® construction, and it is anticipated that most of the area will be supplied with water during the coming season. On the Arrow scheme contracts have been let for the supply of pipes and fittings tor the long pipe line and extensive siphons required for the completion of the scheme. It is anticipated that water will be supplied to the district in the 1929-30 season. During the year the existing schemes were maintained in good order, and a supply of water given to all lands requiring it. The total area irrigated under all Government schemes was 32,949 acres, the number of irrigators being 288. During last irrigation season very strong representations were made to the Government as to certain features of irrigation administration in Otago, it being alleged that the supply of water provided by some of the irrigation agreements was insufficient for certain lands, and that there was urgent need for classifying irrigation lands. After an examination of the district by the Prime Minister and Ministers of Public Works and Lands, the Government decided to set up an investigating committee, under the chairmanship of the assistant engineer-in-chief of the Public Works Department, to report to the Government. This committee has now completed an exhaustive investigation, and is preparing its report, and I have no doubt that when this comes before the Government for consideration it will be found that the report is a most valuable and constructive one. ROAD CONSTRUCTION. The past year again saw very great progress made with the roading schemes whereby access is being provided for those settlers in the back districts, and also on the improvements, by way of widening and surfacing, to the many uncompleted roads. The record expenditure by the Government of £1.253.801 on road works, including main highways, during last year will show the great strides which are being made in this direction. Wherever possible, consideration in the way of improved access was given to the backbloek settlers, and the setting aside of a substantial sum under the new vote, “ Roads to provide access to outlying districts,” resulted in more attention being paid to those roads than would have been possible from the general allocation under the ordinary roads vote. The extension of the Main South road of Westland with a view to its ultimate connection with the general roading system of Otago is one of the works which I have particularly in mind in this connection. In my Statement last year I mentioned the fact that the new vote was being created, and the results obtained have. I think, amply justified the decision to earmark a specified amount for the purpose of opening up and improving the roads in the sparsely-populated districts. It is the policy of the Government, where circumstances warrant such treatment, to assist the local bodies with the renewal of bridges. In the course of the year under review several bridges, some of which were built of soft timber and had been in use for upwards of 20 years, were replaced by modern and more substantial structures. This replacement of old bridges has in some cases been the final work in the general improvement of a road The maintenance of roads is generally acknowledged to be*the responsibility of the local authorities, but in a few cases it has been- necessary for the State to assist. Every care is taken by the department to ensure that such assistance is recommended only in cases where it is definitely proved that the finances of the controlling authority are inadequate, and where, in the event of maintenance being neglected, capital outlay by the State on the construction of the roads would be wasted. Although the funds available for the purpose last vear were administered with the utmost care, the expenditure showed a considerable increase. HYDRO-ELECTRIC DEVELOPMENT. The year just completed, the seventeenth since construction works were first commenced by the department, has been marked by continued activity throughout its period. The expenditure has been £1,095.993. increasing the total capital spent on hydro-electric works from £6.427,935 to £7,523,928. A considerable portion of this capital—about £3.000.000— is represented in works. mainly Arapuni and Waikaremoana, which have not yet come into operation. The year has been a particularly difficult one from an operating point of view,

especially on account of the severe drought experienced in the M. . , disand on account of the operating difficulties at Horahora consequent on the diversion of the river into its new channel at Arapuni. Nevertheless, the annual revenue shows a substantial increase, tw ß oo n ? w £457,369, compared with nr e last year > an increase of £92.957, or 2j.5 per cent. Even though both Mangatiao ana Horahora plants were operating at their limit last year, the total load supplied by all schemes shows an increase from 50,150 kw. to 54,502 kw. during the year just completed. Mainly on account of the excessive amount of power that had to be purchased from outside stations on the Mangahao system, and due to the increased operating costs at iiorahora, the percentage return on the whole operating capital in hydro-electric development has decreased from 6.95 per cent, last year to 4.99 per cent, this year.

The financial position of the Lake Coleridge scheme can be summarised as follows:—Capital investment, £1,561,081: , £ }71,127; operating expenses, £40,004; balance, £131,073. This balance has been used in paying interest charges and a 2 per cent, depreciation charge, a on the year's working of t £25 580. This has been paid into the oinking Fund. The scheme now has a depreciation reserve of £173,231, and a sinking fund of £62,465. The financial results of the Horahora plant may again be considered satisfactory. although, the operating cost has been considerably increased owing to trouble with sand, pumice, and vegetation coming down the river, following the diversion. at Arapuni. There has also been considerable additional cost consequent on. the increased extent to which the fueldriven plants connected with the system had to be utilised to meet the increasing A? £or P owe r. Capital investment, £973,1/3; revenue. £125,312; operating* expenses, £46,568; balance. £78,744. This scheme now has a depreciation reserve of £84.272. a sinking fund* of £49,847, and a reserve of £53,845. At Waikaremoana the capital expenditure on all works has been increased from £185,703 to. £613,893. Operating charges, including interest and depreciation on the plan in operation amounted to £ 3780. The revenue received has been £0073, showing a loss of £3707 on the year’s operation. The accumulated loss on this plant now amounts to £18,757, against which there is an accumulated depreciation reserve of £8925. Construction of the main plant at Waikaremoana has been pushed on very energetically to endeavour to relieve the overload conditions at Mangahao. Contracts for supply from this main plant were made by wh’ch we were to give supply in June, 1929; but we confidently anticipate that power should be available somewhat before this date.

The past year at Mangahao has been a critical one owing to the severe drought which was experienced in all the western districts of New Zealand during last summer.. The financial position can be summarised as follows:—Capital, £2,373,921; revenue, £155.857; operating expenses, £145,659; balance, £10.198. The operating expenses are particularly heavy because of the purchase of power from other plants connected to the system, amounting to £111.745. The financial difficulties of the scheme during the past year are an index of the actual success of electric supply in the district, rather than an indication of any failure on its part, -in that the excessive cost of operation was due very largely to the rapid rate at which the demand for power has-grown. An expenditure of £801,932 has been made on the Arapuni scheme, of which £483,821 represents payments to the contractors for the headworks and power station. As indicated in my Statement of last year, progress on the power house section had not been altogether satisfactory for some time. After protracted negotiations with the contractors, it was decided to take over this section of the work from them, and to carry it on under the direction of the department’s own staff. It is hoped that under this agreement the work will be completed by the department at a cost not very much in excess of that contemplated in the original contract. Work was actually taken oyer at the end of December, 1927, and since that date the excavations for the power house have been completed, the concrete foundations for the three units in the original installation completed, and the erection of one unit and the steel frame of the building is well in hand. There have been various statements that there were grave difficulties in connection with the construction at Arapuni, and that the department was taking undue risks in proceeding with the power house at the site originally selected. Up to date the work carried on has demonstrated quite clearly that the department was quite right in insisting that the work should be carried out as originally planned, and that it was well advised in taking over the work from the contractors. I hope that by the time the next Public Works. Statement is produced power from this important plant will be available in Auckland. . I indicated in last year’s Statement that the Waitaki River had been selected as the next source of power for supply to the South Island system. At that time the actual site was not definitely located, but as a result of surveys and investigations made during the year a site for the dam, about 3J miles above Kurow. has been selected, and construction work has commenced. Tenders have been invited for the mai:. items of plant, and every effort is being made to have power available from this source in three years from the present time. MAIN HIGHWAYS. In my last report I pointed to the fact that additional revenue should be made available to the Main Highways Board for four main reasons: First, to enable an additional mileage of roads to be declared main highways, primarily for the purpose of giving relief to county councils in the matter of maintenance; secondly, to enable the board to continue to pay substantially towards the cost of maintenance of the original highway system, notwithstanding the increased mileage of highways referred to above; thirdly, to assist in a much greater proportion than heretofore in the paving of roads in the vicinity of the large centres of population; and, fourthly, to help

boroughs, more particularly the smaller ones, in the construction and upkeep of the main highways. To provide money for the foregoing, a petrol tax of 4d per gallon was approved by the House during the session of 1927, and as a result of this county are now being" relieved to a much greater extent of the heavy charges involved in maintaining the roads up to the standard necessitated by the continuous and heavy motor traffic. In addition, the construction programme of the board is being greatly accelerated. Since the close of the last financial year the board has recommended that the general maintenance subsidy, which is at present £1 10s for £l, be increased to £2 for £l, and legislation will be introduced for the consideration of the House giving effect to theTooard’s recommendation. The board, recognising that bridge finance, more particularly _in the case of large bridges, often presents difficulties to local authorities, has since 1926 been subsidising the cost of erection of bridges on a scale ranging from £ for £ to £2 for £l, according to the cost of the work. The board has now suggested that bridges costing up to £IO,OOO be subsidised on the basis of £2 for £l, and the House will pe_ asked to consider legislation to give effect to this proposal also. EDUCATIONAL BUILDINGS. Considerable progress was made during the year in providing for increase of school population and the continual movement manifested between district and district. The department is still pursuing its policy of replacing rented accommodation by permanent buildings, with theresiilt that the allocation for rent is pteadily decreasing. Further, the policy of making special provision for small country districts has been continued. A heavy building programme is at present being undertaken, including the Massey Agricultural College, Palmerston North, and the remodelling of Tokomairiro, Otago. _ The department is giving careful consideration to the open-air type of school - —i.e., a building one side of which can practically be thrown open if weather conditions are suitable. Arrangements have been made to note from time to time the effect of this type of school on the health pf the pupils as against the department’s pormal type of fresh-air building. TOURIST RESORTS. The expenditure for the year was £36,673, compared with £31,981 for the previous year. The main works carried out were additions to the Waitomo Caves Hostel; improvements to the water supply at the Hermitage, Mount Cook; extensions to the Rotorua electrical, water and drainage systems; erection of a slipway at Lake Te Anau; and the formation of the road to Lake House, Waikarepioana. During the year a contract was let for the erection of an up-to-date hostel at Milford Sound. TELEPHONE EXTENSION. The speed of the toll service and the traffic-carrying capacity of the existing circuits to certain automatic exchanges have been increased by the installation at certain automatic exchanges of apparatus enabling toll operators at distant exchanges to call subscribers at the automatic exchange without the assistance of toll operators at the automatic exchanges. Another proposal for improving the toll service _ and for meeting the steady increase in toll business is the adoption of a method enabling subscribers making toll calls to be placed in direct communication with the toll-line operator. The convenience of being able to place calls direct with the toll-line operator and the increased speed which should result will, it is anticipated, have a stimulating effect on the use of the toll service generally. The new method will be tried at a number of exchanges as soon as the necessary changes in equipment can be effected. The policy of introducing modern types of exchange switching equipment is being proceeded with as it becomes necessary to replace existing systems. Action ■will be taken shortly to provide certain new exchanges in replacement of those which are now becoming obsolete and which are incapable of further extension. In this connection the needs of the rural communities as well as of the cities are being carefully studied in order that the telephone requirements of the different sections of the community shall he fully met. MOTOR VEHICLE LAW. The administration of the motorvehicle law is proceeding smoothly, although the work involved in the system of refunds of the duty on motor spirits is, as anticipated, fairly , considerable. Certain anomalies in connection with the refunds, have been discovered, as was almost inevitable, and it is proposed to bring forward amendments to the law during the present session with a view to rectification in certain cases. CONCLUSION. I' have endeavoured to instil into my staff, from whom I have had the most loyal co-operation, the fundamental principle that the taxpayer must receive the very best value for the money spent, that all projects must be considered on an economic basis, and that in that consideration not only the requirements of the day are to be considered, but the ever-expanding wants of this vigorous young country. Also, while seeing that only good work is done, and done economically, I have endeavoured to avoid any possibility of it being suggested that low-priced work was to be obtained at the expense of fair and reasonable treatment of the employees. I have always found the staff eager to assist me, and in all cases anxious to carry out the policy defined for their guidance by the Government. I am satisfied that the works which have been brought into being during this year will serve a useful purpose long after those responsible for their conception and construction have passed away. THE ESTIMATES. A TOTAL OF £6,369,500. Some of the principal estimated amounts required to be voted for the year ending March 31, 1929, are given below. The total estimated expenditure is set

down at £5,369,500 compared with an estimate of £5,691,750 for the previous year. GENERAL PURPOSES ACCOUNT. £ Public Works, departmental .. 138,000 Railway construction 984,000 Additions to opeh -lines .. .. 400,000 Public buildings 315,000 Tourist resorts 40,000 Immigration 75,000 -Construction and maintenance of roads and bridges, etc 908,500 .Telegraph extension .. .. 650,000 Lands improvement 112,000 Irrigation, etc 75,000 Total (with other items) . . £5,369,500 RAILWAYS. CONSTRUCTION. £ Okaihau, northwards 130,000 Dargaville branch 120j)00 Gisborne-Napier 260,000 Stratford-Main Trunk .. .. 190,000 Westport-Inangahua ~ .. 80*000 Lawrence-Roxburgh .. .. .. s’ooo Total (with other items) .. £984,000 ADDITIONS TO OPEN LINES. North Island main lines and ■- branches ~ 23,000 South Island main lines and branches 17,000 Architectural houses 73’000 Rolling stock, including rail and road motors ; ~ 421,000 Locomotives built in United Kingdom 45,000 Net total (less credits in aid) £400,000 PUBLIC BUILDINGS. PRISON BUILDINGS AND WORKS. £ Invercargill (main building additions) .. 6,303 Invercargill (workshop, laundry, etc.) .. .. .., 5,000 Invercargill (new gymnasium) .. 4,150 POLICE STATIONS. £ St. Clair 1,500 Halfmoon Bay j 000 Middlemarch 1,300 Milton I*soo Oamaru (constable’s residence) 1,250 Palmerston .. 2 000 Port Chalmers (site and build- . in g) 3,000 Waitati 1,300 POST AND TELEGRAPH. £ Cromwell (additions) 1500 Dunedin Chief Post Office (on account) 30,000 Dunedin (garage) 6,500 Invercargill, additions (on ac- „ count) 2,000 Pembroke (additions) 350 Waikaia (new building) .. .. 1,650 MENTAL HOSPITALS. £ Seacliff (land and buildings) .. 30.000 Waitati ... .. 4,000 LIGHTHOUSES. Moeraki (conversion to auto matic light) J,200 TELEGRAPH EXTENSION. Equipment and material .. .. 323,000 Labour .' .. .. 371,000 IRRIGATION. T • ■ £ Irrigation, water supply, and drainage 1 .. ... 78,700 HARBOUR WORKS. £ Clutha River, dredging (£1 for ■ £L on account) 1,000 Half Moon Bay (wharf) .. .. 2,00 TOURIST RESORTS. £ Glade House (three votes) .. 2,100 Milford Sound (new hostel and electric light) .. .. .. .. 21,500 Milford Track, bridges .. .. 650 Pembroke (wharves) 310 Te Anau (steamer) . 2,500 IMMIGRATION. £ Passage money for immigrants 145,000 Administration expenses .. .. 11,700 Cashing British Treasury notes for immigrants arriving .. 10,000 Portion of salaries in High Commissioner’s office, London.. 6,500 ROADS AND BRIDGES. The following are the principal Otago and Southland votes for roads and bridges:— £ Blackburn to Hillend (£1 for £1) 250 Clarendon to Berwick (£IOO, £1 for £1) 200 Coast road, to Richard’s .. .. 250 Hillend to Waitahuna bridge.. 217 Salmond’s Creek bridge (£1 for T £1) 400 Waihola to Taieri Mouth (£SO, £1 for £1) . . 200 Adam’s road, Gatlins .. .. .. 191 Balclutha protective works .. 222 Gatlins River bridge (£2 for £1) 400 Catlins Valley to Table Hill road. 417 Maclennans to Stuart’s ~ .. 250 Stuart’s to Joe’s Saddle .. .. .. 600 Chloris Pass (£2 for £1) .. .. 264 Kaka Point to Nuggets .. .. 225 Karoro Creek road 1,000 Karoro bridge (£1 for £1) .. 500 Koi to Kelso (£1 for £1) .. .. 350 Lakeside road (£2 for £1) .... 250 Longpoint road • 300 M'Kenzie’s road 200 Papatowai to Longbeach Creek 1,000 Puaho road 645 Puerua River bridge (£1- for £1) — 200 Puketiro Station road 300 Purakauiti 850 Waitepeka bridge (£2 for £1) .. , 750 Kingston to Queenstown (on account) 10,000 Elfin Bay to Glade House ( via Dore Pass) 855 Pembroke to Mount Aspiring 700 Rootburn to Lake Howden .. 600 Eweburn bridge (£1 to £1) .. .. 250 Capburn bridge (£1 for £1) .. 325

Cogan’s bridge (£1 for £1) .. 500 Hawkdun Runs road 200 Idaburn bridge (£1 for £1) .. 300 Upper Taieri to Paerau (£1 for £1) 202 Pipikaretu 200 ?. ay to C a Pe Saunders 300 Wickliffe Bay road 250 Access to S.G. Run, 260 a (Lee Stream) 400 Brighton ‘to Allanton (via Scrogg’s Hill) 250 Clark’s Creek bridge, Aliddlenimarch,(£2 f P r £1 ) ~ 240 Gladbrook and Poplar Grove roads (£2 for £1) 300 Beaumont Station road (£2 for £1) 200 Edievale' to Moa Flat School (£1 for £1) 200 Heriot to Park Hill (£1 for £1) 200 Chalmers Hill to Paul’s (Moa ilat) 500 Keppock road (£1 for £1) .’' 300 Knobby’s road (£1 for £1) .. 200 Mi l road (£1 for £1) 300 OkUSwitzers road (£1 for £1) 300 Shanks s road (£1 for £1) .... 300 leviot Estate roads 300 Tuapeka Mouth to Tuapeka West 500 Alexandra to Clyde (£1 for £1) 250 Bannockburn to Nevis .. .. 243 Grandview Creek protection ' .. 250 Hawea Post Office to Timaru Creek (£1 for £1) .. .. .. 200 Haiyera to Makarora track .. 1,000 Lindis River bridge, Ardgower (£2 for £1) 867 Lower Lindis bridge (£2 for £1) 1,842 Manuherikia River bridge Springvale (£2 for £1) .’ 1,200 Moa Creek School to hotel, via Aston’s (£1 for £1) 350 Tarras to Hawea back road (£1 for £1) .. .. .'. .. .. 250 Shag River bridge switchback road (£1 for £2) .. .. 557 Ape’s road (£1 for £1) .. .. 200 Dunedin to Port Chalmers (Waikouaiti) 2 400 Evansdale to Karitane .. .. 1310 Heads road (Lower Harbour ’ road) 6,156 Lower Harbour road( £1 for £1) 200 Middlemarch to Nenthorn (£1 for £1) 200 Mihiwhaka road (Blueskin to Port Chalmers) 3 500 Mount Trotter to Palmerston ( £1 for £l .) 200 Dasher road( £1 for £1) .. .. 200 Paulin’s road (£1 for £1) .... 250 Ardlussa (£250, £2 for £1) .. 650 Fleming road, Titiroa (£1 for £1) 705 Glenure to Caroline (£4O, £1 for £1) .. .. 2 540 Gorge to Waituna road .. .. 600 Haren road (access) 2,000 Haldane village road I’lso Lawson road north (£250, £2 ’ f for £ U 700 Longbush South road (£2 for £1) 500 Massey’s tramway road (£2 to £1 ) •• •• 500 Mossburn to Five Rivers (£1 for £1) <135 Newton road (£2OO, £1 for £1) 350 Otahuti to Star Bush (£1 for £1) " 350 Otarara to Haldane road .... 1 475 Taylor Gorge road (£1 for £l).. 350 Thompson road (Tokanui) .. 450 Tokanui to Haldane 2,469 Waikaia to Waikaka (via Winding Creek 34.1 Weir road .. 800 Apirima River bridge (on account of £13,750, £1 for £1) 5,000 Gumnne Bush to Ermedale (£450, £2 for £1) 650 Knobby’s road (£1 for £1) .. 381 Traill road (Jacob’s River) .. 2,000 Wakapatu to Pahia 500 ELECTRIC SUPPLY. Arapuni scheme 370,000 Mangahao scheme 75’000 Horahora extension 62*000 Coleridge scheme .. 96/100 Waikarenioana .. 286 000 Waitaki River scheme .. .. 107,000 EDUCATIONAL BUILDINGS.’ £ Public schools .. 210 700 Technical schools and colleges ' . 65*000 Secondary schools .. .. .. 91*000 Universities 10*000 Massey Agricultural College .. 50*000

On April 1, 1927, the available ways and means for public works purposes were 839,387 Additional funds were received as follows:— (a) Transferred from Consolidated Fund in terms of section 12 of the Appropriation Act, 1927 250,000 (b) Under Finance Act, 1926. section 2 (Public Works) 3,599,001 (c) Recoveries on/iccount of expenditure of previous years . ... 40,026 (d) Ellesmere- and Forsvth Reclamation and Akaroa Railway Trust Account receipts 1,615 £4.730,029 The net'expenditure on works £ and services against the General Purposes Account for the year was— (a) Under appropriations 3.300,369 (b) Under Lake Ellesmere Land Drainage Act, 1905 439 (c) Under Lake Ellesmere and Akaroa Railway Trust Account 121 (d) Charges and expenses of raising loans ~. 100,297 Making a total of £3,401,226 This left a credit balance in the £ account for general purposes * at March 31, 1928, of .. 1,328,803 Legislative authority exists for raising a further 5,561,050 It is proposed to ask for further legislative authority to borrow, when required .. 3,000,000 Thus making available for publie works, general purposes, a total of £9,889,853

Balance available at Name of account. liar. 31, Unexhausted borrowing authority at < Mar. 31, 1928. Additional borrowing authority to be Total avail sought during year. able wayi and means 1928. Electric supply account .. .. £' 72,701 £ 3,418,990 £ £ 3,491,69 Waihou and Ohinemuri Rivers Improvement Account 12,078 90,000 a 102, 07t Railways Improvement Authorisation Act, 1914, Account .. 676,769 2,350,000 2,000,000 5,026,769 Main Highways Construction Fund 72,571 2,350,000 •• 2,422,571 Totals for these special accounts 834,119 8,208,990 2,000,000 11,043,101