Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, THURSDAY, SEPT. 17, 1936. PUBLIC WORKS POLICY

Poverty Bay Herald, Volume LXIII, Issue 19122, 17 September 1936, Page 4

Poverty Bay Herald PUBLISHED EVERY EVENING GISBORNE, THURSDAY, SEPT. 17, 1936. PUBLIC WORKS POLICY

Although this year's public works statement does not differ materially in principle' front many which have preceded it, it is notable, at least in its prefatory remarks, for the breezy eloquence that is so characteristic-of the new Minister. Of ail the members of the Labour Cabinet, Mr. Semple brought to his task an energy and initiative which, had the label not been previously appropriated, might well have earned for him the designation of “the man who gets things done.” Mr. Semple, of course is only at the beginning of his somewhat difficult job, but if alone were required to ensure its completion there would be little doubt.of the ultimate results. Unfortunately, perhaps, something more than mere enthusiasm and determination is required to maintain public works activity on the softie at present contemplated, and if not now, then in the not-far-distant future the Government may be called upon to pause in order to consider how long the burst oi activity can be sustained and how fai its public works programme can Tic reconciled with other aspects of its economic policy. There is undoubtedly much truth in the Minister’s complaint that for some time before he took office there was no settled policy in regard to public works, but there is far less justification for hrs tievoting a considerable part of his long statement to a criticism of the short coinings of Ihe previous Government. 'Die previous Public Works Minister who “got things done” was just as enthusiastic and energetic as .Mr. Semple himself, but he was forced to realise that, however good his in-

ten lions, circumstances are apt -to arise which prevent political plans from being carried out. There will be

sincere hope on till sides that Mr. Semple will never find himself in the same predicament. A feeling persists that the present .Minister is so close to the immediate problem that lie has not been able to view il in the correct perspective; to lake the long-range view that is so vital if past mistakes are not to be repeated. Mr. Semple himself points out that public works expenditure reached its peak of £8*,388,000 in 1931, and thereafter dropped until two years later it was less than £2,000,000.

How far the rise and decline are related to one another i.s a point for careful consideration, for the Minister's chief object- should not be to see how much be can spend in one or two years but to ascertain the level at, which expenditure can be more or loss permanently maintained. Ori his own arguments, nothing could be more disastrous than to spend £18,600,000 this year and next and then be forced to curtail the expenditure to about £2,000,000 in subsequent years. Hr. ,Semple and the Government, there fore, should look ahead. The programme for two years has been mapped out. but can the Minister fell Iho country what works it is proposed to do in, say, five years time, and from what source the sum of £8,000,000 or £10,000,000 will be obtained annually? Are there sufficient public works of real economic value to justify an annual expenditure of £9,000,000, tor if there are not there is a real danger of the present policy proving to he only a palliative with the inevitable aftermath? The point is aptly illustrated in regard to railways. Assuming that all the schemes on which work i.s to be carried out are warranted, will at will happen to those workers who have become skilled in railway construction when there are no more lines to build? This point suggests that there is something to be said for the method of completing one work at a. time and then transferring the workers to the next-, giving them continuity of employment and taking advantage of their .skill and experience.

Even wider issues, however, are hound up with the public works policy of the Government, for it should Tie related to the whole of the economic programme. Roads, railways 1 , h.vdioelectricity and other similar undertakings are an asset of economic value, only to the extent that they are used by the public, and the extent ol their use is governed largely by the measure of industrial development and the expansion of population-. Already the Dominion has established public services adequate for the needs oi a population several times as large as that at present inhabiting the country, and until these services are being used to the maximum capacity full value is not being obtained from them. In many cases, they represent a dead-weight- burden on the community, and the burden can only be relieved t:o the extent that -tlie community itself is increased; additional expenditure adds to the existing burden, and there is nothing in the Government’s policy to suggest that relief will be afforded either by an influx of population or increased industrial activity. Indeed, the contrary is the case, for in many respects development, is being seriously handicapped by the -Government \s legisla-

lion. This year alone, for instance, £30.000,000 is being taken from the limited resources of the country for the maintenance of State services which definitely are not: of a productive nature, and it is obvious that every million pounds taken by the Stall l means that much less for usi in industry' for the production of real wealth. This stifling of industry militates against the chances of an sorbing more people, and the excessive rates of taxation prevent, the art ruction of new capital which is the only other method of financing fresh development. It is the same factors which account for the accumulation of vast sums of idle capital in the banks and for the existence of more than £40,000,000 in overseas funds which cannot profitably be used in the Dominion itself. The imperative need, therefore, is not so much foi a grandiose public works policy which may in a year or two collapse undo its own weight, as for a more balanced economy’ which will make possible the fuller ilso- of existing facilities by a steadily increasing population and a general expansion of industrial activity.