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8.—6

PUBLIC WORKS FUND. Oh the 31st March, 1911, the available ways and means for public-works £ purposes were . . . . . . . . . . . 1,140,045 And (excluding moneys obtained for the redemption of maturing loans) additional funds have been received as under, — Under the Aid to Public Works and Land Settlement Act, 1910 . . 181,650 Under the Aid to Public Works and Land Settlement Act, 1911 . . 350,000 Transfer from Consolidated Fund . . . . . . .. 250,000 Miscellaneous receipts .. .. . . . . . . 6,265 Making a total for the ten months of . . . . . . . . £1,927,960 A further transfer will be made from the Consolidated Fund of . . 250,000 Making a gross total available for the year 1911-12 of .. . . £2,177,960 The expenditure under appropriations for the ten months (excluding separate accounts having ways and means of their own) was . . £1,452,647 And a further expenditure of. . . . . . 666,070 is estimated for the remainder of the year, 2,118,717 leaving an estimated balance on the 31st March next of . . . . . . . . . . . . £59,243 To this will have to be added the balance of the 1911 loan yet to be raised . . . . . . £1,150,000 And the authorized loan under the Aid to Waterpower Works Act, 1910 .. .. .. 500,000 1,650,000 Making an estimated total available for next year of. . . . . . £1,709,243 The public works of the Dominion for many years to come must require the close attention of its Ministers. Until its large necessary public undertakings approach completion the country will not be properly developed. I estimate that it will take about fifteen, or possibly twenty, years from the present time to construct all the main-trunk and branch railway-lines, main roads, and other useful and necessary works. When finished there will be a change in the character of our political outlook, now in a large measure necessarily concentrated on such projects as these—a vital necessity to our national growth. Our present position is that of the owner of a rich estate who has two courses open to him —(1) To allow his heritage to remain undeveloped, or (2) by vigorous action to bring it to its highest producing-capacity as soon as possible. The people of the Dominion have wisely chosen the second course, and so the question of public works will occupy a very large part of our national affairs for some time to come. OUR PRESENT PUBLIC DEBT. This has largely arisen through the State's action in undertaking works and duties which in other countries are left to private enterprise. If the cost of constructing the railways of, say, Canada and the United States, for example, were added to the liabilities of these countries their public indebtedness would, of course, be very greatly increased. In addition to our expenditure on public works, such, as railways, roads and bridges, public buildings, harbours and lighthouses, large sums have been borrowed by the Government for purchasing estates for closer settlement, for loans to local bodies, to settlers and workers, and for other useful purposes. Much, therefore, of our public debt is directly interest-bearing, or indirectly profitable. On the whole, less than one-fourth of our total indebtedness is a dead-weight debt, and this proportion to the whole will decrease in future.