PUBLIC WORKS SYSTEM

Poverty Bay Herald, Volume LX, Issue 18065, 17 April 1933, Page 4

PUBLIC WORKS SYSTEM

A COMPLETE CHANGE CASE OP ECONOMY (Special to the Herald.) WELLINGTON, this day. Reorganisation of the ’ public works system along the lines that the public purse and true economy demand, is more than ever urgent, says a statement by the Associated Chamueis ot commerce. In this direction the valuable recommendations of the National Expenditure Commission still await adoption. Now that tlie Prime Minister has publicly announced his agreement with the Associated Chambers that State expenditure must be further reduced in keeping with the fall in the national income, attention must again be concentrated on means of effecting economy. In tfiis connection tlie public works system is a worthy if neglected subject. The National Expenditure Commission, without casting any reflection on tlie officers of the department, unanimously recommended a reversion to the contract system of carrying out public works, which it considered would have an immediate and far-reaching result insofar as the present organisation of the department was concerned. ADVISORY BODY There would no longer he any neces sity • for tlie maintenance of a large administrative staff designed to control and carry out public works in every corner of the Dominion, said tlie Commission, the administrative staff could be reduced to an advisory and inspectorial staff, and the clerical - and accounting system could be greatly simplified.

A month after the presentation ot this report, the Minister of PublicWorks made a public statement on the economies that bad been carried out in the. department He showed that, as compared with 1930-31, gross administrative costs had been reduced by *200,000, and the staff by 41 per cent., while a total reduction of the st-an by 50 per cent was in sight. It was intended as a general policy that future works be undertaken by public tender as far as practicable, he said. Taking this measure of economy on its merits, it is to be noted that fly lur the greater reduction lias been in tlie number of temporary officers—a reduction of 61 per cent. —while the personnel of permanent officers has ceen reduced by only 13 per cent. This latter reduction is out of all proportion to tlie smaller amount of money now available for public works. The amount spent by the department in 1930-31, under all accounts, was £9,307,113, according to the report of the National Expenditure Commission, while the Prime Minister stated in Auckland recently that the amount available for public works for the financial year now entered into would be between £2,000,000 and £3,000,000. Taking £2,600,000 as tlie figure, a reduction oi 73 per cent, is shown in the amount of money available for public works, as compared with 1930-31, so that staff adjustments to date have far from remedied the top-heavy nature of the department. SCOPE ADMITTED

The Minister of Public Works stated that the that must be recognised was that the lesser amount of work consequent on tlie restriction of loan money for public works did not warrant the retention of as many onicers as the department had had and there Was no course open but retrenchment. The Minister then indicated that the total remaining staff of 995 was to be further reduced by 22. Obviously, ostentation is still being maintained around the tomb of extravagant Joan expenditure on public works. It is time the orisons were concluded.

It has been pointed out by the Alinister that the department does not spend only loan money, but that its activities are many and varied. This is undoubtedly the case, but necessity ought to make it possible for certain activities to be delegated—to private contractors where possible—and minor activities to be suspended. If private contracts were reverted to, there would be no necessity for a department of such dimensions as at present. The Minister himself agreed that if all works were carried out by private contract, it would be possible to reduce the staff of the department stiff further.

The National Expenditure Commission is emphatic on the point, as is shown irt the following passage from its report: “We feel so confident that a reversion to the contract system is the only satisfactory basis on which true economy can be obtained that we have not considered it necessary to inquire into the possibilities of effecting economy, assuming the present policy is to be continued.” Not merely pruning of the present system of public works, which has . been the sum of economy to date, but a complete change in'the system, is necessary to meet the needs of the situation.