WORK TO START

Southland Times, Issue 22055, 30 June 1933, Page 7

WORK TO START

NEW POST OFFICE BUILDING AT DUNEDIN EIGHT STORIES HIGH (Per United Press Association.) Wellington, June 29. The Government has decided to proceed with the erection of the new post office building at Dunedin and has also approved the initiation of a scheme embracing the final stages in the rearrangement of railway facilities at Wellington. In making this announcement, the Hon. J. G. Coates said the decision to proceed with these works is in accord with the Government’s policy in respect to both public and private developmental works throughout New Zealand. Mr Coates stated that the Government has had under the closest review numerous projects, many of which, for financial reasons, have been deferred during recent years. It was considered the present time was most opportune to proceed with these two major works within, of course, the scope of the finance available. The co-operation of the Unemployment Board in this direction will, in addition to promoting employment, place more men upon productive works and tend to stimulate building and allied trades which have been adversely affected by the economic disturbance. This in turn will have a beneficial effect upon industry generally. In the decision to make an immediate commencement on these works, advantage has been taken of a further factor, namely, the favourable price level upon which constructional costs can now be computed and the knowledge that whereas a rise in the price of world commodities is essential to economic recovery, this, when it does come, must have the effect of increasing the final cost in respect to local constitutional programmes. In addition to saving capital costs and interest charges upon capital invested in these essential buildings, similar advantages accrue from the arrangement made with the Unemployment Board in respect of the supply of labour in that to the extent that taxpayers contribute towards the subsidies paid by th'e Unemployment Board, they will be relieved of taxation which would otherwise have been necessary over a long period in interest and public debt redemption charges. Co-operation with the Unemployment Board in the application of its subsidy scheme to public buildings has not only opened up the way towards a speedy completion of the buildings concerned and their earlier use for productive service which constitutes economy in initial capital costs, but also offers a solution of the problem of finding ways and means of going on with _ these works within the scope of the limited funds otherwise available. Had it been necessary to provide the whole cost of the contemplated programme from loan funds, an indefinite period of delay would have been unavoidable. _ Mr Coates said that before a final decision was reached in respect to a permanent station for Wellington, action was taken to reduce the cost to the lowest possible figure. A thorough overhaul of the original plans had been made and various modifications decided upon by which the estimated cost has been reduced from the £483,000, originally planned, to £350,000. After making allowance for the contribution which is being made by the Unemployment Board, it has been found possible to finance the balance over a four-year period. A programme of work over that period is accordingly being .arranged and the necessary alterations to the original plans are now in hand. It is intended to let the work by contract and it is expected that tenders will be called early in September next, closing towards the end of October. The work will be commenced very soon thereafter. In the meantime, the department will carry out the work of clearing a site for the building. In a supplementary statement, Mr Coates says the proposed Dunedin post office will have eight floors and it is intended to eventually house all Government offices in the city. The foundations and a retaining wall to the ground level are already construct-

ed. , After referring to the necessity of improving the Wellington railway terminal facilities, the Minister points out the advantage of electrification of the line permitting more efficient hauling over the Paekakariki and Tawa Flat deviation already largely completed, including tunnels.