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1935. NEW ZEALAND.

PUBLIC WORKS STATEMENT (BY THE HON. J. BITCHENER, MINISTER OF PUBLIC WORKS).

Mr. Speaker,—A public-works policy should be one that essentially aims at increasing the country's prosperity. However much we may be diverted from this purpose by the necessity for finding work for unemployed, or by restricted finance due to periods of severe depression such as we have been experiencing, this aim should never be lost sight of nor cease to be the main objective of a public-works policy. I have been and am extremely apprehensive of undertaking works that do not show in a very large measure a proportionate return for the expenditure incurred, but I know this cannot always be fully obtained; in fact, to seek a full direct financial return for the expenditure of loan-money at the present time would simply mean that many public works would cease. I have had many proposals submitted to me for works which cannot show anything like an adequate return for even a small proportion of their cost. Unless it can be shown that there is some indirect return, either social or financial, that could reasonably justify them I have thought it better to reject such proposals altogether. On the other hand, there are now before me many projects which, though they cannot be shown to be fully productive, will yet give a financial return on a fair proportion of the expenditure involved. I would not hesitate to expend loan-money on such works in proportion to the returns produced therefrom, provided the balance of the expenditure required could be met from some source that would not necessitate an annual interest and sinking-fund burden on the future finances of the country. I disagree very strongly with any expenditure that cannot be expected to provide a reasonable return either direct or indirect and that leaves a lasting debt upon the country. Generous assistance from the Unemployment Board's funds has made it possible to reduce the capital expenditure on many works to a payable point, and every new project is examined carefully in the light of what assistance can be found from the revenue of the Unemployment Board and of what amount can be justifiably charged to loan expenditure. This is the method which lam anxious to adopt, and intend to adopt as far as I possibly can. I realize that there is a wider view which takes into account the indirect social or financial benefits obtainable from loan expenditure, but this aspect must be looked upon with great caution, and the benefits must not be too remote.

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