PUBLIC WORKS

Southland Times, Issue 22732, 7 November 1935, Page 6

PUBLIC WORKS

EXPANSION SCHEME ADDRESS BY MR COATES SUCCESS OF POLICY (Per United Press Association.) Paparoa, November 6. The policy of the Government to promote employment through the encouragement of private industry, supported by some expansion in public works according to carefully devised programmes, was discussed by the Rt. Hon. J. G. Coates at meetings in the Kaipara electorate to-day. Dealing with the problems of public works, he said that even during the worst years of the depression there had never been a complete cessation of activities. However, in time of acute depression, a prudent Government was forced to take into account certain factors limiting the extent to which loan expenditure could be pushed with safety. The Government now felt the time appropriate for cautious expansion of public works activities, and provision was made in the Estimates for the current year. He had already made a pronouncement relating to the Government’s public works programme and the scheme of works to be undertaken in co-operation with the Unemployment Board.

He wished to emphasize that the expenditure of loan money would be confined to such amounts as would be justified by the financial returns. The main attack on the unemployment problem must be in the direction of encouraging private employment. The Dominion’s employable population was increasing and there was a tendency for labour to be displaced by the increased use of machinery and more economical methods of production. “The reconstruction measures of the Government have been directed towards stabilizing a sound basis on which private enterprise can expand,” said Mr Coates. “The considerable improvement within the last two years shows the policy has succeeded, while the success of the Government in balancing the Budget has removed the factor of uncertainty. It ensures that taxation will not be increased and offers the prospect of early tax reductions. For some time the Government has been working on proposals which should give positive encouragement to the development of private industry, measures already under consideration providing the basis of procedure for cooperation between the Government and interested groups. In addition specific schemes of industrial development are actually being discussed. If the negotiations relating to one particular project can be successfully concluded, permanent employment will be provided for 1700 men. The housing policy of the Government will also provide a strong impetus to employment. in the building trades, while surveys into the natural resources of the country will provide a body of knowledge of inestimable value to those with capital to invest.