THE PUBLIC WORKS STATEMENT.

Globe, Volume XXI, Issue 1811, 10 December 1879, Page 3

THE PUBLIC WORKS STATEMENT.

The following is the statement on Public Works delivered by Mr Oliver in the House last night. The 1 report is supplied by the Government: — Sir, On the 7th of August my predecessor, Mr Macandrew, made a Public Works statement to this House, in which he shortly summarised the work of the department for tho the last financial year, but avowedly confined himself to such facta as were in his opinion needed to accompany the application for the loan then authorised, I shall now, by permission of the House, give a brief account of the progress of our Public Works up to a more recent date, and then indicate the opinion of the Government of the course which it is our duty to pursue. RAIL-WAYS—NORTH ISLAND. Taking the railways in their geographical order, we begin • with the Kawakawa, that being the most northern. The first section of this line has been completed, and is being used in conveying coals from the mine to the wharf, where the coal is put into barges and conveyed to ships lying at the deep water anchorage eight miles below The first contract on the Whangarei-Kamo line is within a few weeks of completion, and the work of plate-laying will be begun as soon as possible. Tho survey of the proposed Helenavillo-Whangarei railway has now been begun, and during tho summer the whole of this country will ho thoroughly examined. It is expected that the wharf at Helensville will be completed in about a month, which will provide a very necessary accommodation. Between Eiverhead and Newmarket, work is in progress along the whole twenty-two miles, and should be finished in about ten months. If in the same time the Newmarket Junction station could be finished, railway communication between Auckland and the Kaipara waters would be comple'ed. A large reclamation contract is being curried out to obtain increased station accommodation in Auckland, and a site for railway workshops has been bought at Newmarket. The branch line to Hamilton has been opened for traffic, and in a very short time the southern end of the KaiparaPuuiu line will be finished to within two or three miles of the confiscated boundary. Some works are being carried on at Grahamstown and Bhortland, and Natives are employed at piece-work on another section, about two miles long, further up the Thames

Yalley. Tho works on the Napier-Manawatu railway are being pushed on south of Kopua, and sixty-four miles are now open for traffic. Railway workshops are being built at Napier. Ninety-four miles of the Patea-Manawatu railway are now open for traffic from Foxton to Kai-Iwi, nine miles north of Wanganui, and a further section of thirteen miles is being constructed. In a few weeks the Stratford contract on ;the Waitara-Patea lino will be finished, and the journey from New Plymouth to Wanganui will then be an affair f one day only. Surveys are being carefully ° 'o north of Carlyle and this lino, desirable 'ategic and other reasons, between Waiter sti •> j^ ew Plymouth on the north, and tara ana D ort of Patea, on tho south, may no distant date. The works on the"’Wellington- ft Wairarapa district, . , .*» P u «ked on vigorously. The contx b . ean aba J“doned, its completion is eing carried out by the public works engineers. -Aheae works and the formation on Greytown brai^* l aJ '° ao advanced that the line may bo open traffic as far ae tho latter place early in Ft'bruiry. The railway wharf at Wellington and the , workshops at Petone are dra* ing near complelion. Machinery for the latter has arrived and will shortly be placed in position, giving facilities for repairs as well as for economical manufacture of many articles at present bought at a high rate. Surveys of the Foxton line are being proceeded with, and some work has been done near Wellington by day labor over a length of nearly five miles. RAILWAYS—MIDDLE ISLAND. Tho original public works scheme for the Middle Island was finished in tho last financial year, communication by railway being established between Christchurch and Invercargill.* The Western Railways in Southland, however, the construction of which was taken over from the Provincial Government, and some small extensions of the General Government lines, are not yet complete. With tho exception of the Riverton-Orepuki Branch, these will be finished during this financial year. A connection is being made on tho Nelson and Foxhill lino with the port at Nelson, and inland an extension of three miles from Foxhill is in progress. The Pioton and Blenheim line is being carried into tho town of Blenheim. The harbor works, at Greymouth, which may be regarded as an adjunct to the railway system, seem as far as they have been completed to answer tho purpose for which they were intended. From the engineer’s report it would seem that the employment of a dredge has materially facilitated the work and reduced tho cost of these improvements. The works in progress during tho year on the AmberleyBluff railway consisted chiefly of extensions of stations, workshops at the largo towns, and increased wharfage at Port Chalmers. A largo expenditure has been proposed in relaying the main line with heavier rails, but after much consideration it seems inadvisable to do this, as before the present rails could be lifted most of them will bo so much worn that it would not be worth while to put them on another line. Short extensions are made, or are in progress, of the Malvern-Awamoko and Green Island branch lines. The Waipahi-Tapanui railway contract was undertaken on terms of payment differing from the usual ones, inasmuch as no progress payments were to be required as the work went on, all payments being deferred until the line was completed. It was thought the adoption of this method would enable us to definitely extend our system, and to obtain such an increase of price for Crown lands in the neighbourhood of new lines made under similar conditions, as would pay the cost of construction. I grieve to say that these expectations have not been fulfilled. The works which were pushed on with great vigor for some time, are now almost entirely suspended, and the contractors have stated their inability to finish their contract without progress payments being made to them. RAILWAYS AUTHORISED LAST YEAR. Contracts were let almost to the full extent of the votes on nearly all the lines authorised last year, and in several cases tho votes were largely exceeded. Sections were let by piece work and day labor at Weka Pass and Albury, in Canterbury; on the Livingston branch and Otago central railway in Otago, and at Kaiwarra, near Wellington. On all these there are about 2200 men engaged at wages somewhat less " than current rates. It is certain that the number will rapidly become smaller as the summer advances. ROADS. Certain main lines of road in the North Island are being maintained, such as the Great North road, Auckland, the TaurangaTaupo road, the Taupo-Napier road, and some other short lengths of road in Native districts. The Government expenditure on roads and bridges in the Middle Island last year was comparatively small, having been almost confined to Westland and the Northern end of the Island. WATER RACES. Detailed reports up to the 30th June of Government expenditure in aiding mining enterprise have already been laid before you. From these reports and accounts of receipts to the end of the financial year, I find that the colony has spent, in these undertakings, £387,169, exclusive of £29,234 2s lid by way of subsidies. Of the former sum £70,626 5» 3d has been handed over to the Thames County Council as a grant, with an addition of £IO,OOO from the vote of the current year. It has also been arranged to hand over the debt of £II,OOO due to the Government from the Carrick Water Race Company in the county of Vincent. The total receipts from all water races amount to £15,427 7a 103, exclusive of £2945 Os 2d refund of subsidies and interest thereon, being equivalent to an average of about 1 per cent, per annum on the outlay from the date it first became productive - a very unsatisfactory result. Still the collateral advantages are considerable. The Nelson creek and Waimea races, worked by the Government, were the means last year of obtaining 25,800 ounces of gold, and employing about 700 men. COAL EXPLORATION. The moat important work of this class which has been undertaken during the past year is the examination of the coal beds of tho Mokau district by Dr. Hector, who reports that the coal formation there is of considerable extent, the outcrops having a width of over two miles, and stretching from Kawhaia harbor towards the upper part of the Wanganui river. Coal seams crop out on the banks of the Mokau river, varying from two feet to six feet in thickness, and the quality is excellent for steam purposes; 1J tons of Mokau coal having been proved by Dr. Hector’s trials to do as much as two tons of the best Waikato coals. In connection with a district in which coal and limestone abound an extensive deposit of brown hematite has been discovered by tho geological surveyors at Mount Peel, in the province of Nelson. It is fifty feet wide and has been traced for a distance of over three miles. The coal measures of the Tokomairiro district have also bean examined as regards their relation to auriferous cements between the Woolshed creek and Tuapeka, but no new mines have yet been opened in this field. A now mine has been opened at Fernhill, Green Island. Tho Kawakawa coal mine at the Bay of Islands is undergoing development, and the coal is rapidly acquiring an established* position in the market as a valuable steam coal. A shaft recently sunk has disclosed the existence of two seams four and nine feet thick, of superior quality, and at a greater depth than any previous working in the Waikato coalfield. The company which were working the Kupakupa mine have opened another mine on tho opposite side of the Waikato river, and indications of an improvement of the quality of the coal with increasing depth have also been shown by recent discoveries. The heavy works undertaken by the Westport Colliery Company for developing the rich coalfield of the Mount Roohfort district, are making rapid progress and in a few months it is expected that tho market will receive supplies from this source. The further development of the principal coal mines of the colony by increasing facilities for shipment deserves most careful consideration, as the means of fostering an industry that will profitably employ at home a large sum of money which is at tho present time sent out of tho colony for tho purchase of foreign coal. WORKING RAILWAYS. During the first few days of July heavy floods occurred in Canterbury and Otago, doing serious damage to the lines, partially suspending traffic, and causing a heavy outlay in repairs and renewals. The permanent way is reported to be in good working order, except on some of the branch lines, which, owing to the lightness of the rails and sleepers used in their construction, are becoming seriously impaired. A very large number of sleepers have required removal during the last four months, and it is worthy of note that they are chiefly of American timber. These sleepers were only imported as an experiment, and at a time when the pressure was

great, and the local supply wholly inadequate. Tho traffic returns for July, August, and September show a considerable fulling oil, compared with tho corresponding period of last year. No doubt this is owing to tbe financial depiession, but much may be expected from the grain traffic of tho approaching season, which bids fair to bo a prosperous one. A good harvest and the revival of trade, symptoms of which are apparent, would speedily produ*e happier results. lam glad to say that we are extending tho use of Now Zealand coal on our railways, and after the expiry of existing contracts for the suonlv of Australian coal, c;ir arrangements will enable us to dlspflliet) to a largo extent, if not altogether, with imported fuel, and save several thousand pounds a year. In the Public Works statement wh'lch was lately made by my predecessor full particulars were given of tho length of the railways open for traffic, the cost of their construction,,, tho gross receipts, tho working expenses, and' the cost of maintenance. Considering the I headlong and rapid rate at which our railways have been constructed, the uncultivated lands through which n largo portion of nearly all of them pass, and the smallness of our population, it is, no doubi, a matter for congratulation that the contribution towards interest on the cost of construction is so largo. It may, however, be as well to ascertain how the account really stands. I find that the cost of railways open for traffic at the 1 end of the last financial year is £8,690,417 Os Id, including £633,228 Os 4d for interest to date of opening. Tae gross traffic returns amount to £1,729,055 3s 73, from which must bo deducted £1,250,797 5s 7d for working expenses and maintenance, leaving £170,057 ISs for payment of interest on loans out of which these railways were made. Table No. 11, which will bo appended to this statement when printed, ehows that for the past year tbo receipts have been £758,006 8s 2d, and working expenses £515,178 15s, leaving a surplus of £212,617 13s 2d. This amount represents 2 054 per cent, on the average coat of construction, leaving 2 916 per cent, to be supplied from other sources. Sir, wo all believe that New Zealand is a country of such great resources that in the course of years even those railways which are now the farthest from paying will become remunerative. In the meantime, however, tho inhabitants of districts which have no railways are taxed to pay for them, as well as those who inhabit more favored places. How burdensome this charge has become was lately shown by my lion, colleague, tho bon. Treasurer, and the duty is placed on us of considering how to make our railways pay a larger contribution towards their cost by skilful and economical management, and of submilting all future proposals for now railways to the same rigid scrutiny as private investors would make, and firmly rejecting them unless a strong probability can bo shown that they will prove remunerative. It must not, however, be forgotten that tho demands of the public have forced on tho Government the adoption of a more expensive mode of constructing railways, and greater speed in transit than was at first intended, thus necessarily interfering with the paying character of these undertakings. No doubt great collateral advantages are gained by the construction of railways, but after all the practical test of usefulness reall.v is their being or not being used. If, therefore, it is found that on any railway tl e traffic is so small that groat loss results from its working, it may, I think, be assumed that either it is badly managed, or that, being useful only to a few, it ought not to have been constructed. To quote from the statement made by my predecessor in 1878, “Difficulty commenced from the moment when tho Legislature repealed that cardinal condition of the public works policy, that in the event of the proceeds of any railway failing to meet interest and sinking fund on the cost of its construction, the property in the district should be rated to make up its deficiency ” The proposal of the Government, as honorable members know, is to devote the proceeds of sales of land to local and colonial public works. But if this fund is to be supplemented to any great extent by additional borrowing to complete tbe general scheme of railways, there is no doubt in my mind that either those already constructed must be made to approach more nearly to a paying cox.dition or else a system of rating districts beneficially affected must eventually be resorted to. Sir, we do not think that the proposals for the various lines of railways which are now in course of construction have been subjected before their adoption to so close a scrutiny as their importance demanded. It has, moreover, become apparent that the funds which will be at our disposal for the prosecution of these works will prove inadequate to complete them. We think that the time has come when our whole future policy with regard to public works must be considered, and it is, therefore, our intention to ask Parliament for authority to appoint a Royal Commission to make a more full and complete investigation into the cost and economical value of the several works commenced and proposed than it would be possible for the Government unaided to complete before next session of Parliament. The Government hope by means of the report of these Commissioners to be placed in a position to make proposals to Parliament for the prosecution of public works upon a plan carefully adapted to the circumstances of the colony. Our efforts must now, therefore, be earnestly directed to the economical management of the railways, and, amongst other means, I think the keeping the accounts of the various seciions separate and distinct, so that it may be seen what each is earning and spending, will have the good effect of arousing emulation among the officers, as well as of showing on which of the lines a different system of working should be adopted. PROPOSALS FOE THE PUTCEE. Sir, my predecessor has had ihe gratification of proposing and instituting many new works of great magnitude. To me has fahon tho unwelcome task of showing that our resources are inadequate to bear the continued strain of so rapidly constructing these expensive works. Believing that to be the case, we do not intend to ask for authority to begin many new works. The funds at disposal for the next few years will bo only sufficient to meet the necessary requirements for miscellaneous public works already authorised, at a rate proportioned to our resources, and to tho point at which they will bo of real use to the community. Our position is barely this. In respect of the £5,000,000 loan, and the balance of £5X7,120, including credits, with which we began the year, the positive engagements on contracts entered! into and liabilities which must be met, together with the expenditure already made during the current year, will absorb £3,800,863, including £1,210,802 for land purchase, and £ls-4 791 payable to counties in tho provincial districts of Canterbury and Otago, in respect of stoppages from the surplus land revenue of the districts. If finished in the stipulated time, these works will require £2,559,082 of this amount to bo paid before the 30th J une next. Tho remainder of tho liabilities, excepting a portion of those for land purchases, will fall within the following year. Tho balance therefore, which is available out of the new loan, is £1,872,046, and the only method of adding to this for public works, in addition to receipts from land sales, is by diverting to this purpose a sum from one of the other objects for which the loan was authorised. I have stated generally our intentions, and tho principles which we believe must guide our proposals. Whatever may bo the opinion of the House as to the expediency of the course which we propose, that coarse must to a largo extent to guided by circumstances which we cannot control. It is my _ duty to inform the House that the understanding on which the loan agents are .likely to obtain the £5,000,000 loan is such as will preclude our going upon the English money market for further loans for a period or throe years. It is imperative, therefore, in the interests of settlement that the expenditure of this loan should be judiciously spread over that period. Our proposals for expenditure will bo placed in detail before you. I regret to state that although an earnest endeavor has been made to keep the estimates within a reasonable compass, they reach a very much larger sum than hon. members will expect. It will bo seen, however, that no lees a sum then £2,356,729 7a in our estimates is for liabilities which we found in existence upon our assumption of office, and a largo portion of the remainder is for works which are necessary to make available those sections already in the course of construction. However much we have desired to contract the largo expenditure to which the colony is committed, wo have felt bound to ask for appropriations which we are advised will be required for the above purposes. But should Parliament agree to our proposals, it will bo our anxious endeavor to limit the actual expenditure during the current year considerably within the amount of the vote,

T j ■ . , . '' indicate the X will proceed, sir, to briefly -irried out principal works intended to be during the current year. RAILWAYS. Kawakawa.—Another section is nearly ready for tendering, and it is proposed to go on immediately with the works, its prosecution being an obligation imposed on the Government under an agreement between the Superintendent of Auckland and the proprietors of the Kawakawa coal mine, ratified by an Act of the General Assembly, the proprietors under the agreement being bound to pay 6 per cent, on the cost. Irrespective of the agreement, however, this work would be a very desirable one, developing, as it will, one of the most important coal fields in the colony, Whangarel to Kamo.—Plans have been prepared for the Second section, extending into deep water, aua tenders will soon be called for.

Kaipara to Paniu,—Tho whole of this ;fo4k is now under cont act, with Ihe exception of tho station at Newmarket Junction. Tenders ■ have been received for this work, and their acceptance is only awaiting tho passing of the estimates. Tenders have likewise been received for levelling and draining the site at Newmarket, at which it is proposed to erect tho district workshops, as soon as authority has been obtained from Parliament. Waikato to the Thames.—lt is intended to construct a bridge over the Waikato, and a section from Hamilton East. Orders for tho bridge material will be sent to London by an early mail. Napier to Wocdville.—Tenders have been received for the platolaying on the section south of the present terminus at Kopua, the acceptance of which is awaiting tho passing of the estimates. A further section will be put in hand with a view to a contract. Wellington to WoodviitO—lt will probably not be possible to do more this year than complete the line to Masterton; but arrangements will be made for laying the permanent way on the Greytowu branch, and tenders will be called for the erection of tho necessary stations, so as to open the lirve and branch as nearly together as tho state of the work will allow. Surveys of the extension of the line beyond Mastorton will bo proceeded’ with. Bunnythorpe to Woodville—A proposal has been received from tho Emigrant and Colonists’ Aid Corporation to construct a portion of the main lino connecting tho East and West Coast railways, with a view to open up the valuable timbered lands thereon which it passes. The portion suggested is from Bunnythorpe to the Manawatu gorge, and you will be asked to give the necessary power to enable tho Government and tho corporation to enter into arrangements somewhat on tho terms indicated in tho proposal now laid on the table. Wellington to Eoxton.—The necessary extension of the wharf and station at Eoxton will be undertaken, and the work on the Crofion section, near Wellington, will be proceeded with by day labor. Tho surveys now going on from Eoxton will bo continued to completion. A line from Palmerston to join tho Wellington and Eoxton lino is also being surveyed. Eoxton to Carlyle. The section from Kaiiwi to Waitara is under contract, and tho acceptance of a tender for the next section to Waverly is awaiting tho passing of tho estimates. The gap of about nine miles thence to Carlyle will bo surveyed and plans made ready for tendering as soon as possible. The formation of the branch line from Great Ford to Bulls, and the extension of tbe Taroni siding through about a mile and a half of limbered land is under consideration. Carlyle to Waitara.—lt is proposed to complete without delay tho remaining sections between the Port of Carlyle and Hawera, and from thence to Stratford. A portion of this line is being executed by piecework, it having become expedient to do so owing to the temporary unsettloment of the ordinary avocations of some of tho residents. Waikato to Taranaki.—While it is not at present practicable to survey or do any work on this line, you will be asked to grant a small vote to enable the Government to take advantage of any opportunity that may arise in that direction. Nelson to Qreymouth.—lt is intended to call for tenders for a section at each end of this line, and to carry on the Greymouth harbor works more vigorously than circumstances have rendered possible during the past year. Greymouth to Hokitika —The continuance of this line will be kept steadily in view. Westport to Ngakawhau—The Buller protective works will be completed so as to insure the whole district as well as the railway against the encroachments of the river. There is every reason to hope that very shortly the coal mines in this district will be in full working order, and tho expenditure incurred on the line turned to profitable account. Picton to Hurunui—ln addition to completing the line to Blenheim, a section to the South, towards Awatere, will be surveyed and advertised for contract. Hurunui to Waitaki —The main lino through the Weka Pass to Hurunui Plains will be completed, and the stations at the large centres improved. The branch lines to the Upper Ashburton, Little River, and Opawa, will also be proceeded with. Canterbury Interior.—Three sections will be gone on with, namely, one at each end, and one southwards from the Whitecliffs branch. Waitaki to Bluff—Further station accommodation will be provided at the principal centres and increased wharfage at Port , Chalmers. The branch linos from Oamaru to Livingstone, Palmerston to Waihemo, Olutha to Gatlin’s River, and Bdendale to Toitois, will all be proceeded with. Waipahi to Heriot Burn—ln order to facilitate the opening of the line to Tapanui, and thereby place the district in easy communication with a market, it is proposed to assist the contractor in the completion of his contract. Parliament will be asked to empower the Government to make arrangements with tbe contractor to ensure the completion of this work. Otago Central.—Tenders will be advertised for a further contract in continuation of the Wingatui and Hindon sections. This will finish the heaviest works in the Taieri Gorge, and bring the line into the open country of tho Sutton district. Western Railways—The works on the lines from Otautau to Nightcaps, Lumsden to Mararoa, and Riverton to Orepuki will be steadily carried on. East and West Coasts. —This line will not be lost sight of, and while no special portion can for tho present be begun, the surveys will bo continued during the summer. Hitherto only preliminary surveys have been made, and even these have not been completed, on the routes which seem to present the greatest advantages. In the absence of the fullest information, it would evidently be impossible to give a trustworthy estimate of the cost of this undertaking. I have abstained from burdening the above proposals with details of the mileage and cost of the various works to be undertaken, but very full information will be found in the table No. 1 attached to the printed statement. This table is intended to form one of the schedules to the Immigration and Public Works Appropriation Bill in compliance with the provision in section 9 of the proposed Public Works Act, 1879, and this Bill, if adopted, will practically provide the guarantees sought to be obtained by Parliament in the Railways Construction Act of last year. DISTRICT BAILWAYS. Honorable members will regret to learn that nearly all tho railway companies formed under the provisions of the District Railways Acts have been compelled to suspend their operations owing to the general financial depression, and tho defects which have been found in working those Acts. Applications have been received from most of these companies for assistance, on the ground that unless tho Government assume their responsibilities, the expenditure already made will be lost. Some of those branches would form useful portions of our railway system, and with regard to these the Government propose to take power to treat with such companies as have begun works and are unable to complete their lines, and in the event of satisfactory arrangements being made, to purchase them for the colony. As re idents in tho districts interested have shown their faith in the remunerative character of these lines by laying themselves under an obligation to submit to the rating of their properties, if tho railways do not clear working expenses and interest on the cost of construction, it may, I think, be assumed that there is every prospect of the linos proving commercially successful. As tho rating power is intended to bo retained by tho Government, the risk will be reduced to a minimum, the Government being already liable to pay interest at 2 per cent, per annum. WATBE BACHS. Tho vote proposed to be taken for water races in £39,883. This sum viU he ex-

pended, as indicated in the estimates, on works which, while they promise to be beneficial, cannot be expected to be directly remunerative. BOADB. X now coilie v? our proposal with regard to roads. We lay "teat stress upon these, both in promoting a solutiJT Native difficulty in the North Island, amT a 8 *°stermg the permanent settlement of the cottZ!* T * ln connection with the administration of a liberal land law. Unless we steadily pursue a policy of progress by opening up the country with roads leading to our main lines of railways, as well as in parts of the country where we are not likely to be aule to establish railway communication, we can have little hope of a revival of the prosperity of past years. This will only be obtained by enlarging the area of our cultivation, and affording every facility for the occupation of our lands by a far larger population than is how settled upon them. To the revival of immigration and the encouragement of all influx of small capitalists, coupled with the active administration of our land laws, we must look under existing circumstances for a re-establishment of confidence and a healthy pursuit of our] industries, more, perhaps, than to the extension of works of a costly character, for which the funds may not be immediately available. The estimates will show in detail our proposed appropriation under this head. conclusion. In conclusion. Sir, I have only to add that 1 should have made this statement much earlier in ths session if there had been any certainty as So the funds which would bo at otmt disposal. Sven now I should have liked to defer making it for a few days, until the result of our application for the five million loan had bocorne - known to us 5 but the advanced period of the session and of the year forbade any further delay. Sir, 3 have to thank you and the' House for tho patient attention which you have given mo.