PUBLIC WORKS REDUCED

Southland Times, Issue 24164, 28 June 1940, Page 4

PUBLIC WORKS REDUCED

Railway Lines To Be Contemplated

“In addition to meeting all war requirements some provision has to be made for carrying on national works,” said Mr Nash in presenting the Budget hr the House of Representatives last evening. Referring to public works, the Minister said that a substantial beginning had been made in reducing the expenditure on the whole works programme and the amount of borrowed capital required this year was approximately £15,000,000 compared with £19,000,000 in the last financial year. As men were required for more urgent services associated with the war the volume of national work would be progressively reduced. An allocation of £3,450,000 had been made for railways construction and improvements. Of that total £700,000 would be devoted to the completion of j construction works already in hand including the Napier-Gisborne and South Island trunk lines. The balance of £2,750,000 was for additions and improvements necessary in meeting existing committments and for building essential locomotives,' cars, wagons and new goods sheds. The expansion of industry, both primary and secondary, had necessitated a substantial increase in hydroelectric capacity for which an allocation of £2,750,000 had been made. This included new works on the Waikato river and near Lake Waikaremoana and in the South Island, all urgently re-

quired to provide for the demands of the consumers. The supply of electricity continued to be a successful State enterprise and the gross revenue for this year was expected to exceed £2,000,000 which would pay all working expenses, including depreciation and provide a substantial residue towards the extension of works. The provision of £3,234,000 had been made for lar.d development and afforestation. Mr Nash said that the policy was to concentrate more especially on those phases of development which would result in immediate and material increases in production. “The public demand for adequate housing facilities continues.” said the Minister, “and provision for the expenditure of £4,000,000 has been made during this financial year. Houses are in short supply now and any curtailment of their construction during the war would result in serious difficulties when the men returned home from overseas.”

The roads and highways allocation for this year had been reduced to £4,350,000. A total of £2,805,000 was provided for public buildings including schools and telegraph and telephone extensions. “These allocations,” said Mr Nash, “make up a grand total of £20,589,000, but as revenue from hydro-electricity and other sources is estimated to provide £5,506,000 the loan requirements for the year are reduced to a net total of £15,083,000. This loan programme is, of course, additional to the amount that will have to be borrowed for the War Expenses Amount, but national works cannot be dissociated from the war effort.”