PUBLIC WORKS.

Star (Christchurch), Volume XLIV, Issue 643, 22 December 1932, Page 4

PUBLIC WORKS.

Reorganisation of the Department. | EXPLAINED BY MR COATES. (Special to the “ Star.”) WELLINGTON, December 22. “It has been apparent that on account of the necessary reduction in funds available for public works heavy curtailment in the department's activities was unavoidable and indeed that changed conditions had made imperative a general recasting of the whole public works organisation,” stated the Minister of Public Works, the Hon J. G. Coates, commenting on the teorganisation of his own department, which is now complete. This reorganisation will not involve any drastic retrenchment. The money voted by Parliament for public works for the year ended March 31, 1930, was £8,216,717; for 1931, £8,007.779; for 1932, £6,405,405, and for the current year, ending March 31, £3,539,027,” added Mr Coates. ” These figures indicate the extent to which reductions had to be made, and of course corresponding reductions in the personnel of the department were also unavoidable. “ Considerable reductions in staff have already been made, but further retrenchment is necessary. In September, 1931, 761 permanent and 881 temporary officers were employed. On November 1, 1932, these numbers had been reduced to 656 permanent and 339 temporary, a reduction of 105 permanent and 542 temporary, making a total of 647 officers. This leaves a total remaining staff in the department of 995, and further retrenchment now in process of arrangement will reduce this number to 973. It will thus be seen that since April 1, 1931, the staff has been reduced by 41 per cent. Certain internal reorganisations in various branches will enable additional economies to be effected and a total reduction of staff by 50 per cent is in sight. Saving in Administrative Costs. “ The saving already made in gross administrative costs is considerable. For 1930-31 this charge was £507,000; for 1932-33 it will be £307,000. A reduction of £200,000 in comparison with 1919-20, when the public works expenditure was the lowest for the past twelve years, is illuminating. Then the department’s staff numbered 732 and the gross expenditure was £1,612,000. At that time the department had not taken over the maintenance and operation of the hydro-electric and irrigation schemes which have since been completed. Now the staff is 702, excluding 221 engaged on hydro-electric operation and maintenance and fifty on highways, and the estimated expenditure tinder all votes this year is £3,461,000, more than twice what it was in 1919-20. Furthermore, in 1919-20 the department collected in revenue £51,600, whereas this year the estimated revenue is £830,000. This increase in revenue is largely due to the increase in the sale of electric power consequent on the coming into operation of the State’s hydro-electric schemes. This fact alone indicates how the conditions under which the department works have changed. It is not now purely a spending department, and every year the department's receipts from capital expenditure is, as shown above, assuming large proportions. “ It must not, of course, be assumed,” continued Mr Coates, “ that the Public Works Department deals only with the exenditure of loan money. In 1919-20 loan money expended was nearly 89 per cent of the total expenditure, whereas this year the estimate is only 59 per cent, the balance being highway and other revenue moneys. The department’s activities are many and varied. For this reason it is not possible to reduce beyond a certain point.”