PUBLIC WORKS STATEMENT.

Poverty Bay Herald, Volume XIX, Issue 6483, 28 September 1892, Page 2

PUBLIC WORKS STATEMENT.

9 [By Telegraph.] Wellington, Sept. 27. On the House resuming at 7.30 p.m., the Hon. R. Seddon, Minister of Public Works, delivered the following statement : — Mr Speaker : The Financial Statement submitted by my hon. colleague the Colonial Treasurer will to a great extent have prepared hon. members for the inevitable, so far as the reduction in the expenditure on public works is concerned, and it has so far lightened my otherwise somewhat unpleasant task. The decision arrived at by the present Parliament to stop borrowing necessarily brings with it a gradual tapering off in the public works expenditure. When the self-reliant policy indicated in the Financial Statement of last year, and to which further effect has been given this year, waa first announced, it was asserted that the colony would not be able to continue on the lines laid down ; in fact, it was quite understood by many hon. members that, this year we should of necessity have to go upon the money market. Results have proved, howover, that fair progress has been made with our necessary reproductive public works, and yet the expenditure thereon has been less during the past year than it has been for years past, and still the colony has advanced. I may say, indeed, that general prosperity obtains, as well as a feeling of satisfaction and security, except, perhaps, on the part of those who were unpatriotic enough to wish that circumstances would compel the Government to have recourse to further borrowing. When some five years ago the pledge was given by the late Government that further borrowing should not be resorted to for three years, the detractors of the colony abroad (and unfortunately some were found) loudly announced that immediately at the end of the three years the colony would be forced to borrow another loan. Results have proved the forecast to have been entirely erroneous. Five years have now elapsed and further borrowing is not yet required, and from the present outlook we do not consider that further borrowing should take place. The independent position taken up by the Government, supported in this as we are by a largf majority in the House and in the country, has done a great deal in restoring confidence in the finance and resources of the colony. Our securities when this reliant policy was first announced compared unfavorably Tfith those of the other colonies, but on a comparison being made now it will be found that New Zealand securities have attained the highest position. From some of our prominent colonists recently returned from the Mother Country, I gather that there is only one expression of opinion at Home in regard to New Zealand, its people, its resources, and finances, either as a field for inrestment or for settlement. All speak in most glowing terms, and to be a New Zealander is a tiling to be proud of, and not only does this feeling obtain in the Mother Country, but it is the same in Australia. Reference to the press of Australia will fully confirm the favorable opinion, and confidence is expressed in regard to NewZealand and the policy which has been adopted here, namely, to live within our means, to gradually improve the condition of the country, from the revenues received to promote settlement, and to generally carry on our business without the aid of the money lender. Such a policy places us in an independent position, and not as in times gone by, when, cap in hand, money was asked and grudgingly given at rates satisfactory to the lenders, but ruinous to the taxpayers of the colony. The evil of the borrowing policy of the past must be apparent to all thinking men, when we realise that the sum of £1,842,686 has to be annually laid aside to meet interest and the instalments due on account of sinking frnds. Having thus briefly sketched the advantages of continuing the self-reliant course adopted, it will be unnecessary to say that the Statement this year will probably not he attractive or pleasing to those who are favorable to large loan expenditure, but to those who really have the best interests of the colony at heart, and who are prepared to make the necessary sacrifices entailed by the continuance of the policy indicated, I hope to give a measure of satisfaction.

During the recess I have visited the different districts in which works are in course of progress, with the result that I find the construction of the works authorised last session has given general satisfaction, but, as previously stated, the amount expended has been small compared with expenditure during previous years. Before dealing with the particular works in detail, it is well that I should make a statement as to the condition of the Public Works fund. The state of the Public Works fund on tho 31 st March last (including an asset of £878 due to part of the fund under "The Government Loans to Local Bodies Act, 188(3) was as follows : — Part I—Unexpended1 — Unexpended balances 31st March, 1891 £361,989, receipts during IS9I-92 (including an asset of £878 under "Government Loans to Local Bodies Act") £350,071, totals £712,060. Expenditure for year ended 31st March, 1892 (including £100,000 paid off floating debt), £412,482; balances remaining 31st March, 1892, £299,075 ; liabilities existing 31st March, 1892, £250,064; net balances available 31st March, 1592, £49,524. As already announced in the Financial Statement, the Government proposes to devote £200,000 of the estimated surplus revenue of the year to public works purposes. In addition to this a sum of £50,000 will be available under " The Government Loans to Local Bodies Act Amendment Act, 1891," and some miscellaneous credits to the extent of another £20,000 or so are expected to be received in addition, The expenditure on all work and services throughout the colony under the Public Works fund up to the 31st March last, including the purchase of the provincial and district railways, lias amounted to a total .sum of £28,370,541, the principal items being as follows •,— Railways £15,302,1 10, roads £3,604,925, immigration £2,145,967, public buildings ,£1.815,577, purchase of Native lands £1,248,575, lighthouses, harbor works, and harbor defence £889,165, defence purposes generally £429,719, telegraph extension £634,421, waterworks on goldfields £513,368, cost of and discount on raising loans, etc. £1,021,472, and departmental £359,965. Depatitmextal Administration*. As mentioned in my Public Works Statement last year, considerable reductions have been made in the departmental staff, and a groat saving has thereby been effected. This reduction in tho number of the officers necessarily entail a large amount of additional work on tho part of those retained, so much so indeed that I have at times had some doubt as to whether, in making the reductions referred to, I have not gone too far. lam pleased, however, to say that the officers retained have fully justified the selection made, and the work has been performed in a highly creditable manner, and that no further changes in the staff are necessary at present. On account of the largely increased amount of works now performed by most of the officers, and also on account of tho retirement of a number of senior and more highly-paid men having entailed the promotion of a number of juniors to till their places, I have proposed several small increases in salary to departmental officers this year, which I trust the House will agree to. The amounts are in all case? exceedingly moderate, and the total amount of the increases promised does not exceed £230 per annum. So far as the arrangement of the staff is concerned, very little change has been made during the year. The appointment of Mr Blow as Undersecretary was a wise selection. The Acting-Engineer-in-Chief, Mr Hales, has been appointed Engineer-in-Chief, a position to which, from his long experience and position in the service, he was justly entitled and which he will most efficiently fill. Mr John Blackett, who at present fills the position of consulting engineer for the colony in England, will retire from the public service on a well-earned pension. Working Railways. The length of lines completed and handed over to Railway Commissioners for working during the year, has been 31 miles 8 chains, namely, the Glen-Oamaru section of tho Catlins river railway, 6 miles 18 chains, and the Hindon-Middlemarch section of tho Otago Central Railway, 24 miles 70 chains, making a total length of railways open for traffic at the close of the financial year, of 1867 miles. The total earnings during the yeur^ainoum) to £1,115,432, and the vet pro-

fit, after deducting working expenses, amounted to £408,914, being £5086 1e33 than than the Railway Commissioners estimated for the year, and £12,084 less than the net revenue of the preceding year. The per centage return on the total capital invested in the railways amounted last year to £2 15s 9d per cent, against £2 18s lid per cent for the previous year, and £2 19s 5d for the previous year 1889-90. lam glad to state that for the current financial year, the Commissioners estimate that a larger revenue will be earned, their estimate being £423,000, but even this amount will only about bring the net revenue up to that of 1890-91, though the length of line open for traffic will be over thirty miles more than that year. The best paving sections during the laic year have again been the two coal carrying lines on the West Coast of the Middle Island, the Westport section having earned no less than £7 6s per cent, on its cost and the Greymouth section £5 15s 6d per cent. Next to these two lines comes the Napier- Wanganui- New Plymouth section, which earned £3 2s lOd per cent., a substantial improvement for the year. The Nelson section earned £1 4s 9d per cent., against a loss of about the same percentage during the previous year. The Kawa Kawa and Picton sections show more favorable results than in the previous year, while the Whangarei, Auckland, Wellington, and Hurunui-Bluff sections give less favorable results. On the whole, the traffic results of the year cannot be regarded as satisfactory. The gross revenue declined £6,270, while the net revenue has decreased by no less than £12,084, and the rate of interest earned has decreased by 3s 2d per cent. These unfavorable results are more apparent on the Hurunui-Bluff section than on the smaller sections. On the Hurunui-Bluff section the gross revenue has decreased by £42,799, the net revenue has decreased by £38,623, the rate of interest earned has decreased 12s Id per cent., while the cost of working has increased 3s 3d per cent. The total number of passengers carried has decreased 24,585, and the total tonnage carried has decreased 88,035 tons. These results have accrued notwithstanding the length of lines embraced in the system has increased by twenty-seven miles. These very unfavorable results, notwithstanding increased prosperity and the increasing population of the colony, appear to the Government to be so disquieting as to require some special remedy. It has therefore been determined to ask for an amendment of the law under which our working railways are at present administered, and it is hoped that if the Bill for that purpose now before tho House becomes law very much better results may shortly be apparent. The funds voted last year for additions to open lines proved to be more than sufficient, for the requirement of the year, a balance of £12,612 remaining unexpended on the 31st of March last. The Railway Commissioners estimate that this amount will be sufficient for the requirements of the current year, and a vote for that sum is proposed accordingly. The question of the administration and control of the loan expenditure on works on open lines, to which I made special reference last year and with regard to which proposals were made to the House in the Public Works Appropriation Bill last session, but ultimately withdrawn, still remains in an unsatisfactory position ; but all expenditure of loans money should be under the sole control of Government. Still, seeing that the term for which the Commissioners were appointed will expire in January 1594, I do not intend to ask for any alteration in this respect. The friction which has unfortunately existed for some time past between the Commissioners and their employees has not altogether abated. The action of the Commissioners in refusing to recognise their employees' union is to some extent the cause of the discontent that exists, and such action In my opimion really amounts to an interference with the liberties of the subject. In the Mother Country employers of labor, whether railway companies or dock owners, etc. , where they have as many or more men employed than our Railway Commissioners have, have not considered it advisable to restrain their men from joining or forming unions, and so long as the Railway Commissioners maintain their present hostile attitude towards Unionism so long will their employees have ground for complaint. The Railway Commissioners inform me that they have arranged that on the retirement of Mr Blackett, Mr J. J. Carruthers, formerly Engineer-in-Chief of the colony, shall act for them as consulting engineer in England at a remuneration of £500 per annum.

The agitation in favor of the Zone system still continues, and experience is proving in other countries that there is a great deal to be said in its favor. Returns from the working of our railways do not show at alia satisfactory condition of affairs, and representations of Mr Samuel Vaile, of Auckland, as to the working of the Zone system, indicate that at no distant date, possibly on expiry of the Commissioners' term of office, it might be well that a trial of this system should be made on our railways, Wellington-Manawatu Railway. — Considerable agitation has taken place relative to the Government taking over this line. Tho agitation lias come principally from the districts served by tho New Zealand railways, the principal reason urged being the short distance rates charged. The persons principally interested have asked the Government, through their representatives in the House, their intentions, but from the Company itself no overtures have been received. The question demands careful consideration, more particularly from a financial point of view. Under the present policy it would be impossible to provide means for the purchase of this line, and at the same time proceed with the construction of railways and roads to districts requiring same, The Government is of opinion that the time lias not yet arrived for the lino to be taken over. Since last session a test case has been heard in the Supreme Court, and it has been decided that tho Company can only charge the same rates as those prevailing for carriage of goods and passengers on Government lines. This being the case, the only grievance remaining is &hort distance rates I which are charged on through traffic.

The co-operative system. — The result of experiments of construction of our railways and public works on the co-operative principle has proved highly satisfactory, though as in all new systems, there was a little friction at first. There have in some cases also been difficulties at first with the Government officers in dealing with the system, owing to their being accustomed to deal only with contractors, and owing also to subdivision of the works, and having so many separate parties of men to deal with, entailing a considerable amount of extra work upon both engineers and the overseers. Taken as a whole, however, every satisfaction is being given by tho 3taff, with one or two exceptions, and at the present time the wholo of the works are going on quite smoothly and satisfactorily to both Government and men. The work has cost no more than it would have cost if it had been done under the contract system, but at the same time a better class of work has been done. A matter now requiring consideration is the application of the system of co-operation to large works requiring skilled labor. Ordinary railway culverts of brick and stonework and some small bridges have already been successfully attempted. A question at the preseut time is whether laying permanent way could not be advantageously undertaken on the same principle. The matter lam novr going carefully into, and I have already let one experimental contract of two miles in length, and am awaiting the result. It is my fixed intention to adhere to the principle laid down at the commencement that the work should not cost more than if it were done under the contract system. I have received communications from the colony of Victoria, and I am given to understand that the co-operative system has now been introduced in the construction of the public works of that colony. Colonial Industries. I think the time has arrived when the colony should definitely decide to use nothing but colonial cement in the construction of public works, leaving the competition as to the supply of imported or colonial cement to private individuals. Another question of a similar nature is tho using of galvanised iron in the construction of public buildings. Representations were made to Government that a firm in Auckland was manufacturing an article quite equal to that imported. On obtaining a report from the p]ngineer-in-Chief on the subject, I ascertained that from examination and tests which he had made, the iron was of exceptionally good quality and equal to any in the market, and on his recommendation an order has been given for sevei-al tons of the material, to be used in buddings in, course of construction by the

department at Auckland and Wellington. It ia my intention that so long as the article is supplied at a reasonable price to give preference to colonial make, thus, while not paying any more for our supplies, we are assisting to provide employment for a large number of persons, and giving practical effect to the wishes of the Legislature when passing the tariff in 1888. Railways under Construction. I will now refer to the several railway works that have been under construction during the year in their geographical order from north to south : — Kamo-Kawakawa. — About four and a half miles extension to Hikurangi is now well in hand, and a further length will be taken in hand shortly, and a vote of £20,000 will be asked to complete the work. Helensville northwards.— The formation oi Makarau section (with exception of tunnel) is nearly completed, and the tunnel is well !in hand. The expenditure last year amounted to £9376, while liabilities existed at end of ypar to the amount of £13,673. A vote of £15,000 is asked for this year to cover these liabilities and contingent works. Grahamstown-Te Aroha. — The section of this railway between Te Aroha and Paeroa was put in hand soon after close of last session. A length of twelve miles of formation is almost completed. The vote asked for this year will provide for steady prosecu- J tion of the work, and a vote for a moderate sum next year will complete this section of the line. Putaruru- Rotorua. — The Kaponga contract, which brings this line to a point about 13^ miles from Rotorua township, was duly completed in December last, and a contract which carries the line 4^ miles further towards Rotorua was let in January. The Government considers that the completion of this railway is a work of the first importance, and we therefore propose to take a vote this year sufficient to complete it. A vote of £48,000 therefore has been provided, but only £35,000 will be required for actual expenditure this year. North Island Main Trunk Railway. — At northern end of this railway is the Mokau section, which is the connecting link between the completed railway from Auckland and the Poro-o-tarao tunnel. The vote providing for this year is for the purpose of concluding works on this section. At the southern end of this line the works on the Mangaonoho section contract, let in December 1890, have progressed fairly satisfactorily, and the Makokine and Pawhakaroa sections have been put in hand. Eketahuna - Woodville. —In accordance with proposals made last year, the construction of this railway has boon commenced at both ends. The works being on the cooperative principle, only a comparatively small sum was expended during the financial year. The works are still progressing slowly, but will be pushed on more vigorously if the vote, which is now placed on the estimates for work, is passed. A total authorisation of £25,000 is asked, out of which £15,000 is proposed for actual expenditure within the year.

Wellington-Eketahuna (Te Aro extension). -The extension of Wellington-Napier railway to Te Aro has been put in hand and the formation works nearly completed Laying permanent way, which forms part of the present contract, will be proceeded with immediately. Tenders for necessary station buildings will be invited at an early date. Blenheim-Awatere. — The Uatawi contract of this railway has been finished. During the year the contract, called Omaka contract, has been let, providing for laying a permanent way a distance of 2k miles to the southward of Blenheim, and is now nearly completed. Westport-Ngakawau-Mokihinui.— The extension of the Westport-Ngakawa railway to Mokihinui is now practically completed, and the line will shortly be available for traffic. The whole fund has been found by the Westport Harbor Board, as provided by the Westport-Ngakawn v Railway Extension Act, 1890. Greymouth-Hokitika. — The whole formation works are practically completed, and the balance of bridge work is now in hand. The total amount expended on this railway up to 31st March is £117,748, of which amount £17,137 was expended during the year, and liabilities amounting to £7850 existed at its close.

Otago Central. — At the time I made my Public Works Statement last, year this railway was almost entirely suspended owing to loan allocution for same being exhausted, the line being theu open to Middlemarch and rails laid a distance of two miles beyond that point. As quickly as possible after our proposals last year were approved of by Parliament the work of construction was resumed. The formation of the line has now progressed to within a short distance of Hyde, 16 miles from Middlemarch. Th« Government regards this line as the most important railway work now under construction in the Middle Island, and propose to push on with it vigorously. An authorisation of the substantial sum of £36,000 is ftsked. Catlin's River railway work. — This railway (short section half-a-mile in length, including tunnel 12£ chains long) is now on the verge of completion. In further extension of this railway it is intended to follow "direct" the route already surveyed, as this route is the shortest, cheapest, and best. Seaward Bush railway. — Shortly after our public works proposals last session were agreed to the Waituna section of this line was put in hand. The authorisation proposed this year, namely, £15,000, will complete the formation of the line to the Gorge road, a distance of 15 miles from its junction with the Invercargill-BlufF main line. i .SUMMARY. The appropriations proposed for railway works this year total a sum of £399,755, against total appropriation of .€490,276, and actual expenditure £153,763 last year. A very much larger sum could doubtless profitably be expended in railway construction were funds available, and were it desirable to allow our Public Works expenditure to reach a large figure, but in view of the fact that our ways and means are soTnewhat limited, and that the policy of the Government and the country is against a large loan expenditure, I think the allocation of moneys amongst the several lines indicated above may be accepted as a fair and satisfactory one.

Midland Railway. — The section of this railway between Brunnerlon and Reefton is open for traffic, and of the Springficld-Brun nerton section, 3 miles 50 chains at the Springfield end and 10 miles 14 chains at the Brunnerton end are completed and ready for traffic, but neither of the sections are being worked at present. Government very much regret it is now quite obvious that there is no prospect of the Springfield-Brunnerton portion of this important railway being completed within contract time, and that there seems to be no likelihood of further work being undertaken between Reefton and the end of the Belgrove section at present. The company has lately made some very important proposals for an entirely new contract, substituting the system of direct State guarantee on capital invested for land grant principle provided for in the contract. These proposals being now under investigation by a Committee of the House, it would be improper for Government to express any opinion with regard to them at present. Kaihu Valley Railway.— This line has continued to be worked under the direction of the Public Works Department with fairly satisfactory results, the receipts having little more than covered working expenses. The Government has learned within the past week or two that there is a prospect of a company being formed to take over the line, work it, and also provide for its extension further into the kauri forest.

Roads Expenditure. The expenditure on main roads last year was £11,730, with liabilities at the end. of the year of £4945. This year it is proposed to vote a sum of £16,000 for roads of this class. There are still several main roads in unsettled districts which it is imperative for Government to maintain at present, in order to promote settlement and commerce, and that the convenience of travellers may be reasonably met. On district roads last year a sum of £6893 was expended, and liabilities existed on March 31st, amounting to £SO6B. This year it is proposed to vote £15,295 for district roads. Roads to open up Crown lands for sale are of by far the greatesb importance. The amount expended last year on roads of this class was £27,993, and on village settlements and roads in connection therewith £3830. The liabilities at the end of the year were £38,784 and £5788 respectively, and it is proposed to ask votes for £88,310 and £5888.

It is proposed to vote this year the sum of £35,955 for roads to gold fields. £20,555 of this is required to cover the liabilities existing at the beginning of the year, and the balance of £15,200 will be available for new works. PUBLIC BUILDINGS. The total appropriation for public buildings and domains last year was £137,075, viz., £55,600 under Consolidated Fund, £81,475 under Public Work Fund. The expenditure during the year amounted to £78,751. The principal new works executed out of the Consolidated Fund vote were school buildings, which were carried out through the agency of the several Education Boards. The principal worka constructed out of the Public Works Fund vote during the year were the new lunatic asylum at Porirua, the additions to the asylum at Sunnyside, the enlargement of post offices »vfc Christchuch and Invercargill. This year a total appropriation of £103,687 is asked for, viz. , £37,900 under Consolidated Fund, and £53,787 under Public Works. Fund.. PURCHASE OF NATIVE LANDS. A return recently presented to Parliament shows the results of operations of the Native Land Department since the inauguration of the Immigration and Public Works policy of 1870 to the 31st March were as follows : — 5,355,457 acre* were acquired at a total cost of £1,117,434, or about 4s 5d per acre all round, and 1,400,777 acres are still under negotiation, upon which a sum of £67,441 has been expended up to the above date. The Government Native Land Purchase Bill now before Parliament provides for future operations of the Land Purchase Department, and if it becomes law will, it is hoped, enable the Government to acquire a sufficient area ©f land on reasonable terms to m«et the growing requirements of settlement. CONCLUSION. The figures showing loan expenditure during the several years are as follows : — 1385-86 £1,475,386, 1886-87 £1,334,840, 1887-88, £966,159, 1888-89 £613,939, 1889-90 £482,464, 1890-91 £334,756, 1891-92£295 ; 978. The abolition of the system of sub-contract-ing in connection with our public works announced in last year's statement, and resolutely adhered to since, has given unqualified satisfaction throughout the colony, and the introduction of the co-operative system of coiistract'on has likewise led to most beneficial results, experience proving that works are carried out in a more satisfactoi'y manner uuder this system than under the contract system, and at no increase in cost. Having now fully disclosed our proposals for the year I think I may again claim, in view of the reduced amount of ways and means available, and the resolute determination of the Government to avoid even the appearance of a borrowing policy, that the allocation of the funds which we have proposed is a fair and reasonable, and under all the circumstances of the case, not an unsatisfactory one.