PUBLIC WORKS STATEMENT.

Daily Telegraph (Napier), Issue 4137, 25 October 1884, Page 4

PUBLIC WORKS STATEMENT.

Mr E. Richardson, the Minister for Public Works, said: Mr Speaker,— The information usually contained in the Public Works Statement has been somewhat antici pated this year by the particulars laid upon tho table of the House during the last short session. The time that has elapsed since the Government took office has not been sufficient to enable me to make myself thoroughly acquainted with tho proceedings of tho various branches of the Public Works Department, and I have had to depend in a great measure upon the figures and reports submitted to mo by the several official heads of the department. I may state, Inwever, that so far as time permitted I have looked into the question of tho stall , of the department as provided for in the present estimates. Reductions were supposed to bo made in the year 1881-S2, but I find that those reductions were more nominal than real, and that tho bulk of the officers who at that time disappeared from tho list of the permanent staff were placed on temporary charge, and provided for out of the votes for the construction of works. Although I am not as yet prepared to state to what extent reductions can bo made, I am of opinion that the staff is much larger than is necessary for the due supervision of the works tho colony now lias in hand. The railways being tho most important works carried on by tho department, I propose to allude to them first, under the several headings of " Railways in course of construction," "Additions to opened railways," and " The working of railways already opened for traffic." Before, ho wove] , , going into the details of the several lines, it m;iy bo well to state that on the 31st of March, 18S4, the colony had 1404 miles of railway open for traffic, on which there had been expended the sum of £11,251,033, and that there were 234 miles in course of construction. It was to this 234 miles of unfinished railway that my honorable colleague, the Colonial Treasurer, principally alluded when ho stated that it will be our endeavor to push on to a speedy completion the various unfinished portions of lines, so as to add this extra mileage to our revenue-producing railways. Reference was then made to tho railways in course of construction, to surveys, and to additions to opened railways. Mr Richardson then resumed on the subject of WORKING RAILWAYS. Without wishing to cast any reflections on the present General Manager of iiailways, I unhesitatingly express my opinion that the condition and management of our railways are in a very unsatisfactory state. My honorable colleague, the Colonial Treasurer, recently said that in many of tho railway systems, not nearly so large as that of ours in New Zealand, it would be thought absurd to leave to one man tho virtually irresponsible control and management without anyone to consult on the many difficult points which arise from day to day. Yet such is the case here, and I fear no great change for the better can be expected till the whole system is altered. I have been of the opinion ever since our first railways were opened that such a system of management as at present prevails could not produce satisfactory results, and as each year has passed by that opinion has been strengthened, and if anything were wanted to convince me that a great change was needed, the short time I have held office has afforded mo ample proof that it cannot be made too soon. It is a matter of the deepest regret to me that owing to the late period of the year the Government have come to the conclusion that it will be impossible to carry through a bill this session creating Boards of Management which Avould be responsible for the working of our railways, and did I not feel convinced that the Government and the House were determined to take this course at the earliest date possible I would not have consented to take office. Tho House will understand that in saying this I mean no disrespect. I feel bound to state these opinions, because I should otherwise accept a false position. Whilst I believe tho strong Boards are necessary to guide and control the management, both in the Middle Island and in the Auckland district, I find myself, with multifarious other duties to perform, virtually standing in the position of tho two Boards. I will do the best I can, but I must not pretend to think that unaided I can reform the railway system as itrequires to be reformed. Honorable members would bo amazed if they knew all the powers vested in tho General Manager by the late Government by Orders-in-Counciland otherwise. Again, however, let me say that 1 have the highest opinion of the General Manager's ability and zeal. It is as much due to him as to ourselves that ho should not be placed in a false position. Honorable members are nware that two great changes have been made during the year, the one being an alteration in the passenger rates and the doing away with the ordinary return tickets, and tho other a general rise in goods tariff. There has hardly boon time enough to ascertain tho effect produced by the former, but the result of tho enquiries I have made clearly point to the fact that the great bulk of the passenger traffic is confined to the two days on which the cheaper fares obtain, and indeed it would appear that the traffic is still being reduced on the other days of the week when the higher rates are charged. I feel convinced that in many directions thu passenger rates will have to be reduced to attract the traffic tho railway ought to carry, and that such reductions, if judiciously made, will result in increased receipts. With regard to the rise in tho goods tariff, there is no doubt it has produced a large increase to the revenue ; but while this increase in the receipts has taken place it is an undoubted fact that a great deal of tho traffic has been diverted from the railways in some parts of the country, and that the carriers on the roads are competing , successfully with the railways. I am sure honorable members wall ayreo with me that this state of things should not occur. Comparing the quantity of goods carried over the railways during the year 1883Sl with tho year ISB2-83 we'find that there was an increase in the number of live stock of 208,251, and in the tonnage of goods of 135,217 tons. I consider, howover, that the increase would have been much larger had more determined efforts been made to attract truilie to the railways. The remedy, as X have already informed the House, lies in v thorough revision, not only of the rates charged, but in the classification of the goods, and while this revision is being made every opportunity must bo taken to make the rates press as lighlly as possible on all local productions, and on all articles the reduction on which will belli either tho settlers through tho country or tho local industries which are already established or are likely to succeed. ROADS TO OPEN XTP CROWN LANDS BEFORE SETTLEMENT. Mr Richardson then referred to the grant for opening up Crown lands before •sale, and stated that out of the £218,415 on the estimates of the previous year, the sum of £103,713 (including liabilities), was left on the 31st March last, and the Government proposed to ask for a further vote of £29,545. MAIN* AMD DISTRICT ROADS. With reference to grants under the Roads and Bridges Act for main_ roads, Mr llichardaoii said that the applications received in June, 1883, when reduced in accordance with the Act of last year, amounted to £221,587. Tho applications foi , grants for bridges were granted in full, but on those for roads only onefourth could bo given, making the total distributed £70,081, to which had to be added £10,287 granted for repairs of extraordinary damages by floods. The amount lent to the local bodies for district roads and bridges was £22,941; and £20,603 was spent mi roads on goldfield, besides liabilities of .C17J97 outStanding-. For waterworks on goldh'clds £10,596 was spent, and there were further liabilities of £7383. rUKCILA.SE OF NATIVE LANDS. The areas .of native lands of which tho purchase was completed last year were as follows :— Auckland provincial district, 77,721 acres; Wellington, 120,861 acres; Ta'ranaki, 10,251 acres; making a total of 228,862 acres. The total area purchased

to date was 3,958,233 acres, at a cost of j£S23,SGG, and a. further area of 1,213.055 acres was under purchase, £92,927 having been spent on it, making a total of £921,693 spent to the 31st March last. IMMIGRATION. The Loan Act of 1882 provided a sum of £200,000 for immigration, and since that time assisted and free passages had been granted to 9019 immigrants, and 150 more (chiefly single women) were on the way. A total of 110,883 immigrants had been introduced by the Government since tho inauguration of the immigration scheme. Since April, ISS2, all but nominated immigration had ceased since March, even nominated immigration had ceased, except for single women. TELEGRAPH EXTENSION. During the past year 100 miles of new line were completed, making the total length 4074 miles, carrying 10,037 miles of wire. Extensions amounting to 242 miles of line were contemplated. COALFIELDS. After referring to various matters Mr Richardson went on to speak of the coalfields, saying that the coal industry was slowly but surely increasing in importance. Thus, while in six years the consumption of coal had increased 75 per cent., the proportion of New Zealand coal used had risen from 48 per cent, in 1877 to 77 per cent, in ISB3. He regretted, however, to note a serious falling off in the production at the Kawakawa mine. The permanent failure of that line would involve a serious loss to the colony, as an expensive railway had been made to connect the mine with a deep water wharf. From the reports of the Geological Department there appeared, however, to bo good ground for expecting that the falling off was only one of the fluctuations incident to tho development of all coalfields, and it was anticipated that a more active and ox*ended use of the diamond drill in tho district would lead_ to the discovery of fresh coal seems. A similar failure was experienced in tho case of tho important Springfield mine, from which Christohurch was largely supplied, but in that case the company procured a diamond drill, and the result of its use in discovering new coal scams on the property had been very successful. The principal areas occupied by coal measures—concerning the extent and value of which more exact information was required—wure the following:—ln the Xorth Island, the Bay of Islands district; the district at the source of the Waipa and Mokau rivers; and the lower Mokau district, where seams of valuable steam coal were known to exist, and probably to extend into the upper district of the Wanganui river. In the South Island the area of coal formation on the Paparoa, rangii north of Groymouth and tho country from Reef ton to the source of the iJuller river required more definite exploration, similar to that which the Mount llochfort coalfield had received. PROPOSALS rOK THE FUTURE. Mr. Richardson continued :—The proposals I am about to make are based on principles which, after long discussion with my colleagues, I have decided on submitting to the House as the foundation of our future Public Works policy. There are two points which wo must bear distinctly in mind—first, that there is great work for us to do in the way of extension of the railways system, of feeding tho railways, and of opening up the country by the construction of roads and bridges, and at intervals, when the colony needs it, of increasing tho population by immigration. The second point I have to ask the House to remember is that, inasmuch as we are not engaged on a spasmodic work, but on one that will last oar lives and the lives of our children and children's children, we must endeavor to bring to its performance as much of system as is possible. If we consider these two points jointly it will be evident that they really amount to not more than this — that we must steadily pursue the functions of colonisation as fast as, and no faster than, our means permit, and it will also be evident that although we may make prognostications of the extent of the future money at our disposal, aii exact determination can only bo arrived at from year to year. But in order to obtain a general index of the future means it is necessary to know what is the policy of finance that is to bo obtained. The Colonial Treasurer has already at some length enunciated tho views of the Government on the subject, and I may bo permitted to supplement what has been already stated. Taking the present year as a starting point, the object after this year will be to bring tho expenditure charged on the consolidated fund within tho means of that fund without the aid of tho property tax. We foresee that that can easily be done by shifting to local expenditure some of the present charges made on the consolidated fund, notably the charitable expenditure and some other small items, let us say amounting, with the charitable aid, to some £IUO,UOU a year. It is clear that the local bodies cannot undertake this without an additional revenue, and to dispense with needless points of controversy at present, we may suppose that tho £100,000 is supplied by either a property tax or a land tax. But other revenue will also have to be supplied to local bodies, as it cannot be satisfactory to continue for a lengthened period the policy of making and maintaining roads and bridges out of borrowed money, which has been virtually what has been going on for some time. The borrowing for roads and bridges cannot be abruptly brought to a conclusion, but its cessation must bo an end kept in view. I need not further pursue tho subject of providing local revenue, but may come to that which is of most moment to my present object, of tho consideration of how we are to find the means of pursuing colonising operations. If we accept the starting point of this year--which 1 have asssumed—we shall have to ask ourselves how, without increasing tho taxation, we may have the means of meeting the additional annual charges on the money borrowed for the work of colonisation. There are three sources of increased revenue, or increased means to which to which, to look forward—first, the natural net increases of revenue from year to year ; second, the increase of revenue from new railways, and also the increase in revenue (apart from natural increases) from existing railways, as they are fed by new railways, roads, and bridges , and third, tho annual saving from reduced rates of interest on loans converted, apart altogether from the saving of the expenditure of sinking fund, with which I have in this Statement nothing to do. Now, there should be next year, and for some years to come, at least a net natural increase of revenue of £50,000. There should also be over many years an average additional saving of at least £20,000 annually on account of reduced interest on converted loans— some years it will amount to a great deal more. From the other source, if wo pursue the wi.su policy of endeavoring as soon as possible to obtain returns from borrowed money expended, wo should obtitin considerable increases of revenue, apart from tho natural increases. When tho North Island trunk railway is finished the increases from feeding to all tho fragmentary systems in the island will be enormous. Putting this prospect on one side, I anticipate that if you allow me to pursue the works with a view to early returns, there will be during the next two or three years an average increase in railway revenue of at least £25,000 per annum. Wo have, then, a net natural increase of revenue of £50,000, an addition each year to the savings on account of conversion of £20,000, and £25,000 increase on account of new works—in all £95,000. Tho Government consider that this justifies our borrowing a million and a-half during next year, and that the probabilities are that in future years the increase of revenue will justify at least additions of irom one to one and a half millions a year. The additional burden of this million and a half will amount at present rates to £60,000. But probably in a year or two the money may be borrowed at 3 K instead of 4 per cent. But it will bo said I have forgotten the additional charge of the third million to be negotiated next year. The third million, however, has not been forgotten, but in considering the difference between this year and next it has to be remembered that the interest on the money obtained by temporary expedients, and in anticipation of Ihe loan, will cover the amount of interest on tho third million. It is a million and a half that, as has already been stated, we propose to take authority to borrow, and I may say we also propose that it should cover expenditure up to the end of March, 1886. I have not taken into account the annual charge of tho North Island trunk lino one million loan, because up to the extent of £100,000 I think we can provide for that lino out of the million and a half, and tho Government wish to defer negotiating that loan until the expenditure of L tlio line is very-

liecivy. At first, with all eagerness to push it on, it -will foe impossible to spend much money on it, whilst if the whole sum is brought into the Treasury there will be the old clanger of its being spent for something else. In the manner of stating the votes proposed to be taken for railway works this session, two changes have been made which it is believed will be very beneficial, not alone in facilitating the work of the department and enabling the Minister to realise the state of affairs, but also in letting honorable members see the amount of money which is proposed to be spent during the year in the actual construction of railway works in their several districts. The changes which I allude to are as follows:—First, the taking of separate appropriations for additional works required on opened railways as distinct from new works for extension of railways; and second, the taking of separate appropriations for the permanent way and rolling stock required for the railways, including additions to opened lines instead of as hitherto including the permanent way and rolling stock in the votes for construction works. On the Ist April, 1884, there was an available balance for expenditure of £877,912. This does not include a payment of £752,003 due from the land fund. "The outstanding liabilities on the 31st of March, 1884, after deducting a large sum for native land purchases not likely to be wanted for some time, amounted to £1,313,559. Between the 31st of March and the 31st of August, 1884, further liabilities amounting to £256,-140 have been incurred, making the total liabilities £1,549,996. I have already stated that the available balance at the end of March last was £877,912. Deducting this from the liabilities there is a deficit of £072,084, but then there is the third million of the 1882 loan, and assuming it to come into the year's account and to net par, there will be a balance of £327,906 only available for the votes of this year beyond liabilities. With the exception of this small balance therefore the votes of last year practically disposed of the three million loan, and not only of that, but of the £2.30,000 raisedundcrtheLoeallnscribed Stock Act, the proceeds of which have also been drawn into the fund. As far as I can see from careful examination it was intended that the three million loan should last out 1885-80. The financial year ends on the Hint of March, and the Act prescribes that one million only shall bo borrowed in the years Ibß3, 1884, and 1885. The third million could not have been expected to be available many weeks before the end of March, and thus it must have been intended to spend money before it was borrowed, or that the third million should last till 1886. But the then Government declared that they would not spend money before it was borrowed, so it must have been intended that the loan should last next year, whilst, as I have said, with an additional loan of £250,000 there is only for new votes of this year £327,816. It is necessary that I should point all this out, so that we may have on record the point at which the new loan which the Government propose to raise intervenes; as also that you may realise that a great part of that now loan is required to fulfil the schedules of the Three Millions Loan Act, besides the £250,000 which has also been absorbed. On the other hand, so far as the votes are concerned, it is only justice to my predecessors to point out that the votes of each year include much more than can be expended within the year. A system has grown up of voting sufficient to cover the probable cost of contracts, whether or not these contracts can bo executed during the vcar. If I follow the same system, and take large votes for new works, honorable members must understand that in the few months that remain of this year only a small portion will be spent, so that up to the end of March next I estimate we shall not trench upon the actual cash proceeds of the proposed new loan of a million and a half much, if any. more than £200,000. The Government are in fact providing for expenditure for the year 18S5-BG. We propose to take authority for a loan of a million and a half, as lias already been intimated by the Colonial Treasurer. Adding that to the available balance at the end of March last and the third of a million of the loan of 1882, wo shall have a total of £3,377,912 available for expenditure from the Ist of April last in payment of liabilities and for now works or, deducting the liabilities to the end of August of £154,996, there will bo £1,827,916 left for now works, which is another way of stating the balance of £327,916 out of the three millions loan added to the proposed loan of one and a half million. In order to make this complicated subject quite clear I should explain that I have treated the liabilities of £236,446, incurred between the end of March and the end of August, as liabilities. As far, however, as the Government incurring them arc concerned they may treat them as fresh works during the present year, unvoted as yet, but to be voted in the estimates. On that footing the late Government may say that they had £230,446 more to vote for tho present year than the £32,716 I give them credit for. In view of these facts and figures I propose to ask tho House to vote in all this year for liabilities already existing and for new undertakings to be presently entered into tho sum of £2,810,289, made up as follows:-—For immigration, with liabilities

at the end of August amounting to £02,280, we ask for i vote of £100,000 ; for general departmental expenses, with liabilities amounting to £12,759, wo ask for a vote of £30,057 ; for railways we ask for a vote of £1,507,516, on which sum we have to charge £903,89S for existing liabilities, and it also includes £522,584 for additions to opened lines, but of this sum of £522,584, there are existing liabilities of £315,295 ; for roads, with liabilities of £355,404, we ask for a vote of £737,008, including £304,200 for grants-in-aid under the Roads and and Bridges Construction Act, on which there are liabilities amounting to £201,200 ; for waterworks on goldfields, Avith liabilities amounting to £7603, we ask for a vote of £12,857 ; for the purchase of native lands in the North Island we ask for a vote of £90,000, that being the amount estimated to bo required to meet the payments which become due during tho year now current: for telegraph extension, with liabilities of £20,423, we ask for a vote of £29,322 ; for public buildings, with liabilities of £51,526, we ask for a vote of £171,104; for lighthouses and harbor works, with liabilities of £20,983, we ask for a vote of £55,916 ; and for charges and expenses of raising , loans we ask for a vote of £16,500, that being the amount estimated to bo required to cover the cost of raising the last million loan which was floated in England. Mr Richardson then stated in detail the mode in which it was intendod to expend the amount to be devoted to railways in course of construction or proposed to be constructed, remarking with regard to the line Napier to Woodvillc and Buimythorpe that it wan proposed to complete it throughout as rapidly as possible, and that tho vote proposed for this year would be sufficient to cover as much of the work as could bo conveniently let by contract before the next meeting Parliament. The vote for the Wellington to Woodvillo lino would also be sufficient to complete the sections at present in hand. With regard to the North Island main trunk railway, Mr Richardson said that the route having now been decided he was enabled to issue instructions for the survey of tho first section, south of To Awamutu, and he hoped to be able in a few weeks to call for tenders for that work. He added that ho woidd leave to tho Native Minister the task of obtaining land along the line, but it would bo necessary in any case to commence tho construction at the other end of the line, and it would greatly facilitate the prosecution of the work if the construction of tho Welling-ton-Manawatu railway were vigorously pushed on. At the conclusion of his enumeration of the various railway works proi>oscd to be proceeded with, Mr Richardson remarked that if the House consented to vote the amounts he had intimated would be asked for there would be at tho end of the present financial year 1480 miles of railway open for traffic, as against 1401 miles opened up to tho end of March last. Ho then referred to the large sums expended on roads to the north of Auckland, it having been considered that roads wore of more immediate necessity in that district than a railway. The people there were, however, earnestly appealing Cor an extension of the i.i-unk system of railways through their districts, and the Government woidd make inquiries as to the advantages that would accure to the settlers by complying with, their wishes, and also as to the extent of Crown lands that would be thereby benefited, and the funds that would bo derivable from the disposal of the forests, and from rentals of suitable - sized farms in tho district through which the railway would run. With regard to

the votes which would be asked of the House for roads, Mr Richardson said that the vote for roads north of Auckland would be for the whole balance of the amount already allocated in the Loan Act of 1882, viz., £103,800. For grants in aid under the Roads and Bridges Construction Act the amount of the vote would be £304,200, which included a liability of £204,200 for outstanding allocations to the end of March last. That would leave tho item of district roads still to be provided for under the permanent appropriation of £100,000 made by the Roads and Bridges Construction Act, 1882, the balance available under that head, including some £1803 of debentures already paid, being £43,987. For roads to open up lands before sale the amount proposed to be voted was £133,305, that being the balance allocated of the loan of 18S2, with some small additions recommended this year. In winding up his Statement under this head Mr Richardson expressed a hope that next year such a system of local government would be introduced as would make it unnecessary to ask the House for such an amount of votes for roads and bridges. CONCLUSION , . Mr Richardson concluded as follows: — Mr Speaker,—l shall only add that I hope when the time comes round for the next annual Public Works Statement I shall be able to show that the department generally is being administered with greater economy than at present; that I may have been able to place the tariff on the railways in a more satisfactory state ; and that I shall be able to submit a bill providing for the creation of non-political Boards of Management which will be satisfactory to this House and to the country. I have, I am sure, wearied the House, and perhaps I have trespassed too far on its patience, and it only remains for me now to thank you Mr Speaker and honorable members for tho indulgence accorded to me. MINISTERIAL STATEMENT. Mr Stout made the following statement: —The Government wish the House distinctly to understand that all the proposals and intentions stated by my colleague in regard to railways in both islands stand together and stand moreover connected with the bills which have passed this House, to which we have already said we attach paramount importance. The Government are not inclined to take too local a view of the railways, and to say, "We cannot make a railway to this town because we cannot make it to another." Patience must be exercised by the localities, so that the railways may be carried on with some regard to speedily obtaining returns from the works in progress. But whilst not taking a contractedly narrow view of local claims, the Government have no notion of seeing one island raised to a prosperous condition and the other plunged into gloomy depression. I will go indeed, further, and since there appears an inclination to bring about such a result, the Government will be no party to it, nor will they suffer it. They will sooner that this session should bo entirely barren, and that another session should immediately follow, with or without an appeal to the constituencies. Mr Thompson criticised the Public Works Statement at some length. Mr Bryce said that tho statement made by Mr Richardson had made a good impression on him (Mr Bryce). It was a most important statement, but the Premier's remarks were of equal importance, and ho thought the House should have time to consider tho statement well before the debate was continued.