8.—6,

For main highways and road operations, including maintenance of highways, a total of £7,000,000 is being provided, this being £250,000 more than was expended last year. The great volume of work now being undertaken with the aid of modern machinery upon the Dominion's road transport routes, in both densely and sparsely populated areas, has been favourably commented upon by the travelling public. Apart from State housing activities, which I have already dealt with, the \ aiious general public buildings—new offices, post and telegraph buildings, schools, &c.—are expected to require £2,150,000. Of this total £900,000 has been allocated for the various school buildings which are required. As mentioned last year, co-ordination of building activities is being maintained so that the most urgent needs are met first and the best use made of available labour and material. Ihe increased industrial activity in the Dominion is clearly reflected in the increasing demand for electricity. The Government's generating-works have been fully loaded, and substantial additions to the installations at Arapuni and Waikaremoana in the North Island and Waitaki in the South Island are m hand. The revenue receipts totalling £1,622,457 for the past year were more than £200,000 higher than for 1937-38, which was. itself a peak year. The commercial accounts to be presented with the Public Works Statement will disclose a substantial profit for last year, and this will be applied to i educing, very materially, the sinking-fund arrears brought forward from earlier years. An ample supply of cheap power is essential to the expansion ol industry on a large scale, so expenditure on this type of work is clearlv sound business. It is. anticipated that constructional expenditure for the current year on the additions mentioned previously and on a new generating-station at Highbank, Canterbury, and numerous minor extensions throughout the Dominion will require £1,400,000, and operating expenses £440,000. To provide over a short period for the heavy capital expenditure on defence, VZZJZSS** been included in the Public Works Fund estimates for an amount of £2,200,000. These details cover the principal classes of public works. The financial aspect of the whole programme for this year is shown more clearlv bv the tollowmg summary:— Railway construction and improvements . . 5 230 000 Highways and roads " 7,000,000 i üblic building's . . . 2150 000 Land settlement, development, and improvement . . 3'639000 Hydro-electric development . . . . . . I^B4oooo Telegraph and telephone extensions . . . . '600'000 Defence . . . . . . ' 2,200 000 Other works (aerodrome extensions, lighthouse works, development of tourist resorts, plant, material, &c.) .. 1,258,000 Total ■ • ■ • • • ■ . £23,917,000 Attention has on previous occasions been drawn to the fact that constructional and maintenance operations are so frequently interwoven that a considerable proportion properly chargeable to revenue is necessarily included n the statement of expenditure on public works. To defray this proportion lowevei, it is anticipated that revenue-moneys to a total of £4,855,000 will' be forthcoming from taxation, disposal of produce from the land, and from electricity sales and miscellaneous sources. The balance of £19,062,000" will

Highways and roads.

Public buildings.

Hydrceiectricity.

Defence.

Financial programme

11