PUBLIC WORKS

Press, Volume LVII, Issue 17123, 19 April 1921, Page 6

PUBLIC WORKS

POLICY OF REDUCTION. EFFECT OF FINANCIAL STRINGENCY. (sria.iL to "rra miss.") AUCKLAND. April 18. Tho effect of tho financial stringency upon the policy of the Public Work* Department was the subject of a statement by Hon. J. G. Coates, which makes it clear that tho greatest economv is to bo exercised in tho ei-

penditure of money on public works throughout the Dominion. Tho Ministor stated that this did not apply to the development of lydro-clcctri? energy.

Mr Coates said it was well known that sinco his coming into office, de-

spite the very adverse conditions in the way of shortage of labour, tremendous strides had been made in tho proasmition of public works throughout the Dominion. Tho world-wido financial stringency was, however, manifesting itself in New Zealand, and in tho Minister's opinion, it was imperative that all expenditure, private, local body.

and Government, should bo restricted to essential works of necessity. If particular discrimination was not excr-

cised, thon works in this category must Buffer, because tho money available would bo dissipated on works of lesser urgency, and which, though desirable, could, Without causing any real hardship, bo deferred in tho meantime. Another phaso of the matter which the Minister's investigation had revealed, was that in most cases, particularly where much material was used, road and bridge works wero being carried out at a cost at loaat twice the pro-war price, and in many cases considerably more. It followed, therefore. that settlers wero gotting only half or less tho roading for tho same amount of money. it could not ho denied that in ink and other countries there hod, afoot the war, been what might b© described as a wild rush of expenditure; an effort to catch up in the least possible tine tho work which had been deferred dur;' ing the war. Tho result was that local bodies had been competing with on* another for men, team*, punt, and ] material. It followed that the cost ©T j work beoamo excessive, and in many cases the Minister was afraid that wort had been carried out at a cost whieh tho circumstances and public utility «f tho service did not justify. In certain works which must bo diroctly revenueproaucing, tho capital cost would bo overloaded, with the natural con*quence that the scrvico of then© worn could bo performed only at » cost considerably greater than would havj!' baea the case had tho people ©xercuedla little paticnoo and waited until toe works could bo carried out under more stabilised conditions, and at a. correspondingly less capital cost. It had been hi* desire and ambition to vitalise tho prosecution of pubho worltß generally throughout tho Dominion, said Mr Coates, and ho hopw it would be realised that it was with vory real regret he had to announce the necessity for tho concentrattett of public works expenditure on thole works which wero really urgent and essential. This would mean that many • worltß, desirable though they might bo, but of purely local importance. Bran be deferred until financial and other ; conditions improved. ... Continuing, the Minister said tnftt for some time post ho had beep curtailing expenditure on public buildings, ; and in any other direction possible at the time, and he was now arranging • for the restriction of expenditure 00 roads and bridges. This was a seetittl of pubiio works expenditure which Bt particularly regretted having to cartail, but tho sooner tho facta were faced the better for all concerned, afti he would fad in his duty jf he 6<d not As a primary step, local bodies would be aßked to furnish a statement of tho .; balances on authorities for work* whien • had been entrusted to them for ex- * penditure. "Where any definite contract commitment had boon entered into by the local body, he would, of course,. : honour the authority issued to that eatteut, and also, of course, in wapectto any expenditure actually incurred. The .; uncommitted balance of tho authority ; would, in all cases, be cancelled. Thero < was, said the Minister, always a rtty j large unexpended balance of fcntnprt* 1 ties in the hands of local bodies which, I in ordinary circumstances, was a liabu- ; ity which the Government had eWrtu* ) afiv to meet. Much of this related to works which wero not being prosecuted. Some months .back he hau consulted local bodies with a view to reducing this commitment to a more reaaonaMe sum, but the response to his anpeal was altogether disappointing. He > was, therefore, compelled on this occasion to adopt tho method of cancellation, so as to ensure achievement of tho result desired. When, by thi.4 moans, the whole position had been cleared up, and the Government's liability doflmtaty ascertained, he would then be able to consider eases on their merits. He . believed that tho courso he was taking ; q would eventually prove to bo in the ?| best interests of all concerned and he & annealed to all local bodies and settlers |] to realise the facts and assist him to | tide over n difficult period. ?;: