PUBLIC WORKS STATEMENT.

Hokitika Guardian, 22 October 1927, Page 2

PUBLIC WORKS STATEMENT.

BY THE HON. Iv S. WILLIAMS. AIIXISTER OF PUBLIC WORKS

(Per favour of Government)

Air Speaker.—As honourable members are aware, it Is just a little over one year since J assumed Alinisterial control of tho Public Works Department. During that period I have tried to study carefully the administration of the Department in its several branches, and in making; my inquiries I have always enjoyed the cheerful assistance of all members of my stall'. With a. view to enabling mo more fully to appreciate my predecessor's policy of public works and to obtain a personal knowledge of the large enterprises in band, as well as the many smaller local works, 1 spent most of last- recess in systematically inspecting wherever I was able the Department’s operations throughout the Dominion, lly these visits T have obtained valuable personal knowledge. 1 have endeavoured to view the Department’s operations from a purely Dominion . standpoint, believing that local interests must always be subservient to national considerations. On the administration side, I have followed the policy of concentration and expeditious achievement laid down by my predecessor in 1921. It is my endeavour to prevent- waste, and so obtain good value to tho State on nil works undertaken by my Department. The country is at present suffering from a temporary depression, caused by a general decrease in the value of our primary products. 3 his state of affairs lias occurred before, and will happen again in our history, and it would be wise for us to bear that in mind, and prepare ourselves to meet such occasions. World prices for our primary products we cannot control; but we can increase production within our own country to ease the financial blow that this country, inevitably receives on a fall ol prices for our primary products. AN ith a view to encouraging increased production from our country districts, it is my desire, by providing railway transport, hydro-electric facilities, and i road improvements, to enable fanning operations to be carried oil economically and without hindrance, and by irrigation, flood control and drainage to bring into full productivity lands not now fully utilised.

1 feel it- my duty, as far as my financial resources will allow, to assist road construction to open up lands where production is hampered by want of access. In many places, to my knowledge, it is, until comparatively late in the season, difficult and expensive for produce to bo taken from the farm to the market. This is especially so in connection with dairy produce from backblock farms, and this hardship is reflected in reduced returns to the producer. Tho Alain Highways Board is relieving the position with regard to the main highways and with the services rendered by railways groat facilities are given for development work in the rural districts within reach of such means of transit. There still is, however, the roadless farmer in the most remote parts '.whose fanning operations are restricted for want of proper access to the markets. His difficulties are accentuated by deflation in land values and the everincreasing rate burden for the maintenance of existing roads, caused by the extraordinary increase of motor transportation. His case obviously and of necessity requires our special attention.

The hydro-electrie services supplied by the Department are rapidly springing into favour both in the cities and country districts, and. it requires but little imagination to realise the enormous claims that will in the future be made upon these services for power and domestic uses. In public works construction it is imperative that national interests be paramount where they conflict with local desires. In arriving at decisions in this respect I must be guided by the Dominion scheme of construction to ensure proper connections with existing systems; and the expert reports of my Engineers, as to economy and efficiency of construction and subsequent service, and the business to be obtained by the new enterprise. This policy is applicable both to railway construction and Jiyjdro-elect'ric installations.

In connection with wliat- T maycall relief workers, it lias not been possible either to pay standard wages or to provide the housing conditions and recreation facilities as are usual on our regular works; hut, as my predecessor has said in past Statements, it is undesirable that too great, a. number of workers should look to borrowed money as the source from which they should derive their livelihood, and it is my desire that the employees of my Department should he reduced to the number to whom continuous employment can he reasonably assured in accordance with tho Government’s policy of progress)' ve d evelopmeut.

AVhilo the Government recognises that cases of hardship should he relieved, it does not wish to create in the minds of workers the feeling that there is no necessity to provide for a rainy day and that- whenever they become unemployed they can look to the Government to find them work under standard conditions. As has boon set out more than, once, the Government has a settled policy of developing the country progressively; the amount, however, which can he borrowed usually depends upon progress not only in numbers of population but in value of exports 1 , or, more properly perhaps, the difference between exports and imports, and the recent financial stringency points unmistakably to the necessity for a. decrease in the amount of annual borrowing. The decrease must he made judiciously, however, in order that workers may have an opportunity of finding work in their usual avenues of employment. Tt has for some time been quite evident that the monetary provision for the maintenance of highways and also for other roads in the Dominion is inadequate. The total expenditure for the past year by the Alain Highways Board from its Revenue Fund, incurred on the highway system, which comprises approximately 13 per cent of the total formed roads in New Zealand, or about 25 per centof the hard surfaced roads, was £54i,090, while the actual amount of revenue received during the year into this fund was only £544.548. This latter figure, moreover, is much inflated, due to the causes set out in the Alain Highav Board’s report. The estimates of revenue and expenditure for the current yar show a much more unsatisfactory position, a deficit of over £200,000 being anticipated. The amount of money being found hv the county ratepayers towards the upkeep of the highways has also been increasing at a veryconsiderable rate, the figures for the three years up to the present being £IIO,OOO for 1924-25 (nine months only); £285,015 for 1925-26; £276,3-19 for 1926-27; and the estimates for the coming year indicate a still further increase. In addition, the cost of maintenance of ordinary roads lias been continually increasing in sym-

patliy with the increasing use of motor vehicles, so that it is quite apparent that some further assistance must be given to local authorities to cope with an increased expenditure, tho greater part of which increase is directly traceable to the use of motor _ vehicles. Alore might be done to reduce the wear and tear on tho roads by restricting, in accordance with the heavy traffic regulations, the weights and speeds of the vehicles which are permitted to travel on them, and I think this course should be followed by local authorities in cases where tlieir roads are breaking up and funds for reconstruction are not available. This principle, if carried too far, would cause administrative difficulties and might be considered as unduly throttling roacl transport and thereby possibly creating hardship on the very people itwas intended to help. AYe have therefore reached the point where either fresh taxation must be levied or the good work which has lieen initiated in the past three years must ease off, which latter course will disappointing alike to the motorists, the local authorities, and the men engaged on the work. The improved reading facilities already provided have allowed motorists of all classes an opportunity to travel more economically and into districts removed from their own. This has resulted not only in tho use and wear of the main highways, but in a great deal of extra wear and tear on the subsidiary or settlers’ roads, with the result that the ratepayers in a number of districts now\ find themselves loaded up to breakingpoint with rates, and at tho same time they are faced with the fact that their roads are deteriorating. An examination of the figures representing the importation of motor vehicles and the cost of maintaining the highway surfaces' shows that as tho number of cars increases maintenance of road-surfacing increases practically in the same ratio. Since 1924 the increase in the cost of maintaining the highways alone represents from £5 to £6 per annum per additional contribution from motor-taxation to the highways funds represents approximately only £3 per annum per motor-vehicle. Nevertheless it is most undesirable that there be any slackening-off of maintenance, as such a step would result in the loss of much of the capital which has already been spent in bringing the roads to their present state. It is undesirable, too, for other obvious reasons, that the construction programme be interfered with. Good progress lias been made in this direction, but tho desire of the motorist who lives in the city to have even better facilities than the present programme and finance allow, and his willingness to pay for such are evidenced by tho number of schemes for local taxation which are in operation, are being promoted, or are in the air.

Looking at the matter from all points, it appears to me that a further source of revenue is required which will provide sufficient funds to enable the present programme of higliwayseonstruction to continue, tho present standard of maintenance to be kept up, and in addition, to enable the Highways Board to grant such liberal subsidies as will enable the densely trafficked roads radiating from the principal centres of population to ho surfaced with high-class paving within a reasonable time. Provision must also he made to enable assistance for maintenance being given on a pound-for-pound basis on a system of secondary highways from 2,000 miles to 3,000 miles in length. This further source of revenue will also furnish the interest and sinking fond on the loan of £3,000.090 which is authorised in the Alain Highways Act, 1922. Such sinking - fund will l>e based on on a conservatively estimated life of the improvements financed by the loan. This appears to he the right policy, as we have no definite knowledge as to how long the present system of roading in New Zealand will stand the wear and tear of constantly increasing traffic, and therefore the loan indebtedness .should be paid off within as short a time as possible consistent with the country’s ability to pay. The particular lengths of road to- lie paved in the vicinity of the centres of poulation will be selected by the Main Highways Board after consultation with the District Highways Council and after any representations of organisations of motor owners have been considered. The roads to constitute the secondary system of rural highways above mentioned will also be chosen by the Alain Highways Board after District Highway Councils have submitted their recommendations.

The principle that boroughs should share to a greater extent than is tho case at present (if not universally) in the benefits received by local authorities from tho funds of the Alain Highways Board under the present legislation has been stressed by municipal authorities. The reply to such a suggestion is that the present funds arc inadequate for the purposes contemplated in the present Alain Highways Act. nor does the suggested further source of revenue referred to above make any provision for direct assistance to work in boroughs. The latter can only he provided for by a still further source of revenue. The AT ai ti Highways Board lias been subjected in a few instances to local pressure directed to enforcing the car-rying-out of grade easements and other improvements, which are perhaps just a little premature in tho present state of development of Now Zealand. It is important that the funds available, which are by no moans in excess of hare requirements, should l>e conserved and devoted rather to tho elimination of dangers and the improvement of surface than to tho obtaining of good grades.

The economies of all projects put forward ar© carefully looked into, and while perhaps to the passerby some of the deviations or improvements in hand may appear extravagant, an investigation of the pros and cons will show that they have all a solid justification when upkeep and running expenses are considered as well as capital. EXPENDITURE. The total net expenditure under a” votes and accounts appearing on the public-works estimates for the financial year ended 31st. March, 1927. v£G.777,474. Of this sum £3.588,059 was expended out of General Purposes Account, and the balance, £3,189,415 out of special accounts. A brief summary of this expenditure, as well as the total expondit" ■ since the inception of tho publicworks policy to the 31st. March last follows in tabular form: WAYS AND AIEANS. / On the Ist .April, 1926, the available ways and means for public works were £526.421. Additional funds were received as follows:

(a) Under Finance Act, 1924, section 2 (public works) £4,152,991. (b) Recoveries on account of expenditure of previous years—£l46.933. (c) Ellesmere and Forsyth Reclamation and Akaroa Railway Trust Account receipts—£l.62o. A total of £4,827,965. Tho net expenditure on works and services against the General Purposes Account for the year was:— (a) Under appropriations—£3,B32,655. (h) Under Lake Ellesmere Land Drainage Act, 1905—£439. (c) Under Lake Ellesmere and Akaroa Railway Trust Account—£Bl.

(<!) Charles and expenses of raising loans —£100,3, Making a total 0f—£3,988,578. This left a credit balance in the account for general purposes at 31st. of March, 1927, 0f—£839,387. Legislative authority exists for raising a further £5,001,050. It is proposed to ask for further legislative authority to borrow, when required, £‘1,000,000. Thus making available f r public works, general purposes, a total of £9,900,437. RAJ LAV AY CONSTRUCTION. During the last financial year the Opunake Branch Railway, of a length of 23 miles, was completed and handed over to the. Railway Department for incorporation with the general railway system of the country. In addition to this line, rails have been laid on 17 miles 05 chains. A passenger and goods service has been run by the Public AVorks Department over various lines 152 miles in length, the principal sections being between Taurangn and Ohura. Goods traffic only has been run over a further length of 29 miles. Tlie.se services run while sections of line are being completed, have undoubtedly been of great benefit to the districts and settlers served, although perhaps in some cases adding to the cost of

construction. The schedule attached gives a complete statement of the work on railways now in progress, and the extent to which it is anticipated the railways can ho completed during the next two years, assuming that sufficient financial provision will be available. SOUTH ISLAND LTNES. Midland Railway—Work on the Ka-watiri-Miirchison Section of the AlidInnd Railway is in hand over a length of approximately 5 miles, being the length from the Knwatiri Station to the Gowan Station, of which the southern end is at 07 miles 9 chains. An investigation into the advisability of continung construction of the railway beyond the Gowan has lieen made, from which it is clear that present transport conditions do not warrant any further extension of construction. The matter will, however, lie further investigated when the amount of traffic offering on this new section has been ascertained. On the Cascade Section of the AVest-port-Inangahua Railway, the main work has been tbe completion of the formation, plate-laying, ballasting affl bridging on a 3-mile length to tbe sidings for the Cascade Coal Coy. at the 9-mile. The company will flume its coal 7 miles from mine to siding. A trial run shows the flume to he successful, and it is anticipated that a considerable coal traffic is likely to develop on the section very soon. On the adjoining Cascade-Hawk’s Craig Section, a commencement has been made with preliminary work preparatory to continuing construction on the section.

Since my last statement exhaustive surveys have been made to determine the best route for the AVharanui to Parnassus connection of the South Island Alain Trunk Railway. In brief, the result of these surveys and the investigation of estimates have been to show that the original inland route must' be abandoned on the ground of excessive cost, which would greatly exceed earlier estimates. The coastal rout© offers the best possibilities, but cost of construction by this route would still ho very heavy, and would certainly not be less than estimates previously adopted for the inland route. AIAIN HIGHWAYS BOARD. The Alain Highways Board has completed its third year of active operation, and it must be acknowledged by all who use the highways of the Dominion that very substantial progress as been mado both in maintenance of J4e existing roads and in the way of new construction. A number of local authorities with the Board’s assistance have embarked on comprehensive programmes extending over several years, some of which are already well advanced. Alany other counties have undertaken roading improvements on a more moderate scale, commensurate with their resources and the requirements of traffic, with the result that the motoring community generally has reaped very appreciable results. However, in one or two localities where reconstruction of the roads is justified by the present traffic, the local authorities concerned have not come forward with suitable proposals to the extent anticipated or intended by tho original legislation, and consequently the highways in these districts are appreciably below the average standard throughout the rest of the Dominion.

During tlio last session amending legislation was passed empowering the Board to increaso its subsidy towards the cost of maintenance from £1 for £1 to £1 10s for £l. Thus within three years the Board's contribution has increased from 33 per cent, to 50 per cent, and then again to CO per cent, of tho total cost of highway maintenance.

To provide sufficient funds for this year’s construction programme it lias been found necessary to make a transfer from the Revenue Fund to the Construction Fund in accordance villi section 15 of the Main Highways Act, 1922. This transfer will he a temporary one only, it being the Government’s intention to introduce during this session legislation providing for reimbursement to the Revenue 1' uiul of am amount so transferred. I have pleasure in recording that the Main Highways Board willingly and effectively co-operated with the Government in providing suitable work for the relief of the unemployed. MOTOR VEHICLE LAW. My Department has recently been directed to take over the administration of the Motor vehicles Act, 1924, with a view to one Department having the administration of all motor-vehicle law. It is not proposed to change the present system by which the Post and Telegraph Department undertakes the registration and licensing of cars. The main undertaking immediately in view is the issue of uniform regulations concerning motor-vehicles and motoivehiele traffic throughout the Dominion, and this is under urgent attention. Another activity was placed in the hands of the Department last year by > the passing of the Motor-omnibus Traffic Act, 192 G. In general, it may bo said that this Act is operating successfully, and with benefit to the public as users of motor-omnibuses and trams. It is proposed to remedy at tlio earliest opportunity certain de- " fects and anomalies which experience has shown to exist in connection with the working of the Act. The Motor-lorrv 'Regulations have been consolidated this year and various minor amendments have been made m them. Since the last Statement approval or amendment lias been gazetted of tlie road-classifications under the regulations of thirty-four local bodies, but it is considered that, as a whole, full advantage is not yet being taken by local bodies of their power of roadclassification. CONCLUSION. It will be abundantly clear from the particulars given in tho preceding that during the past year the construction of alf classes of developmental works that are chargeable to capital lias continued on a very extensive scale. The total expenditure against the Public "Works Fund and other capital accounts amounted to £6,777,474 and that sum

has only once been exceeded in any one financial year. Tbe expenditure, however, on works which are directly carried out by the Public AVorks Department represents a trial greater than that in any previous period. Tho provision of transport facilities continues to Ik.* the most important of tlu* activities that are chargeable against these funds, and this must necessarily be so in a young country where tbe success of primary industries is so dependent upon a successful and adequate transport system. Of tbe total expenditure from funds under my control the slim of approximately £2.360,000 was expended upon Railway development, the construction of new lines absorbing £1.090,000 while tho important railway improvements works and additions to open lines now in band absorbed a rather larger sum. Portions of new lines under construction represent important links in the existing system, and as these are approaching completion it is reasonable to anticipate that during the next few years there will bo a decrease in tbe expenditure on the construction of new lines.

Next in order of importance is the expenditure upon highway and road construction and improvement. Under these beads a total sum of approximately £1.140,060 came to charge. I have in tbe introductory portion of this statement dealt at some length with the most important and pressing qiiesion of finance for highway and road improvement purposes. The expenditure of the very large sum of £1,130,000 from the Waterpower AVorks and Electric-supply Account i.s an ample indication of tho great importance in which the utilisation of electric energy is held by tho Government. It i.s a most important and vital fact that electric energy is available for the use of town and country dweller alike, and tho reticulation of country districts must go a long way towards providing the country dweller with tbe amenities of city life and retarding tbe urban drift. It is hardly necessary to make further mention here of the many other activities, Important though these lie, that my Department has carried on.

I wish, however, to very briefly stress that I. feci sure that economy mud efficiency of management and operation tiro the guiding motives throughout tho whole of tho operations carried on by the Department. To these ends the use of mechanical plant continues to lend itself both by increasing the output of work and by reducing tho time required for its accompl is.hment. Tho staff throughout the Department have supported me with their customary loyalty throughout the year, and, as an indication of the way they have risen to the enter go i icy caused through tho necessity of employing over two thousand more men than last year, I would point out that this lias been done with an increase in staff of only eight-six. For the past year the expenditure has been five times what it was in 191617, while the staff has not increased even to twice its size at that time and the gross expenditure on supervision is only a little more than twice what it was. In other words, tho amount of work, as measured by expenditure suprevised per officei. is more than two and a half times what it was in 1916-27. and twice what it was in 1919-20. From this it will be seen that every officer lias been working at. very high pressure; in fact, in a great many cases, the breakingpoint is being approached, and il the number of the rank and file is to be kept at anything near its present number it will be necessary to make a, very considearbie increase in the number of officers in practically all ranks.