D.—l.

employed was 19,531, as compared with 22,728 at the commencement of the year, a reduction of 3,197. At the present date the total number of men is 17,089, but of this number, 2,226 are employed by contractors working for the Department, and 2,112 are employed by local bodies on public works subsidized by the Department, thus making the actual number of men paid directly by the Department 12,711. Included in this latter figure are 2,181 men employed solely on defence works. It will be necessary, of course, to give special attention during the war period to the adequate maintenance of public utilities such as electric-supply installations, main highways, public buildings, irrigation schemes, &c., and steps will be taken to ensure that no undue deterioration of these assets occurs pending the restoration of normal conditions. With regard to other schemes of less urgency in the public interests, there has already been a progressive curtailment, and this will continue in directions where the effect will not deprive married workers of their means of livelihood. FINANCE. The payments and receipts and accumulated totals in connection with the Public Works Fund and other associated votes and accounts for the year 19,49-40 are shown in the tabulation following. The gross expenditure amounted to £23,052,548, of which £6,100,041 was expended by other Government Departments; the recoveries in reduction of expenditure amounted to £5,661,569, of which £1,216,247 was recovered by other Departments; the net expenditure totalled £17,390,979, of which £4,883,794 was expended by other Departments. In addition, the Department collected £1,878,645 for the supply of electric energy, irrigation receipts, and miscellaneous revenue from other sources.

VI

Expenditure, 1939-40. Total Net , ,, , : Expenditure to oi Work. —- ! ;j f st Maroh> Gross. Recoveries. Net. 1940. Expenditure, Public Works Fund. Kail ways — £ £ £ £ New construction .. .. .. .. .. 1,253,868 75,092 1,178,776 42,789,406 Improvements and additions to open lines .. .. 3,048,687 62,047 2,986,640 25,186,848 Roads.. .. .. .. .. .. .. 1,169,851 45,261 1,124,590 27,441,349* Public buildings 1,825,390 22,584 1,802,806 17,894,401f Lighthouses, harbour-works, and harbour defences .. .. 23,777 1,258 22,519 1,390,991 Tourist and health resorts .. .. .. .. 26,170 1,278 24,892 806,528 Telegraph extension .. .. .. .. .. 693,569 276,791 416,778 13,293,412 Departmental 603,081 455,509 147,572 3,744,025 Irrigation, water-supply, and drainage .. .. .. 444,838 28,400 416,438 1,966,767 Lands-improvement .. .. .. .. .. 194,347 21,822 172,525 1,408,887 Swamp-land drainage 19,077 16,377 2,700 105,565 Settlement of unemployed workers .. .. .. 613,302 166,544 446,758 1,858,609J Native-land settlement .. .. .. .. .. 1,052,802 694,958 357,844 1,539,620 Dairy industry loans .. .. .. .. .. .. .. .. 46,125 Cost and discount, raising loans, &c. .. .. .. 137,609 .. 137,609 3,965,916 Closed accounts (for more detail see Table 1) .. .. .. .. .. 8,116,828 Totals, General Purposes Account .. .. 11,106,368 1,867,921 9,238,447 151,555,277§ Electric Supply Account (previously Aid to Water-power Works Account) — Construction .. .. .. .. .. 1,098,811 52,598 1,046,213 17,384,678!! Working-expenses .. .. .. .. .. 386,701 7,195 379,506 Waihou and Ohinemuri Rivers Improvement Account .. .. .. .. 709,740^] Totals, Public Works Fund .. .. .. 12,591,880 1,927,714 10,664,166 169,649,695 * Includes £4,500 expended under section 16, subsection (1), Native Land Amendment and Native Land Claims Adjustment Act, 1923. t Excludes expenditure on workers' dwellings totalling £319,918 transferred to State Advances Account ; includes £154,488 expended under Reserves and other Lands Disposal Act, 1936, section 32. { Includes £4,865 expended under Finance Act, 1932 (No. 2), section 6. § Does not include expenditure under Ellesmere Land Drainage Act, 1905, or £1,226,000 transferred to and included in Main Highways Construction Fund. || Total capital, excluding suspense items as per accounts in Table No, 5, 1[ Excludes interest and loan charges.