PUBLIC WORKS STATEMENT

Hokitika Guardian, 2 March 1932, Page 2

PUBLIC WORKS STATEMENT

SUBSTANTIAL REDUCTIONS. MINISTER OUTLINES POLICY. (Per favour of Minister of Public Works.) WELLINGTON, March 1. In the statement of the Puotic (Works policy made in the House of Representatives to-night, Hon. Mr J. G. Coates said:— The remarks I am about to make are subject to review if capital monies are unavailable. The total- sums will be subject to alteration, if it is' found impractical).*© to raise the required monies for A.0.L., Land Settlement, Native Land Development, Land Drainage etc., owing to the depression brought about by the economic disturbance which is by no means confined to tliis c-oun-tiy. The Government is faced with tne difficulty of providing capital moneys to pursue new works or complete schedu.ed undertakings. The present financial and economic conditions have led me .to review “de novo” the- Punlie Works operation of the country. Some little time ago, on behalf of the Government, I advised the spending Departments under my control, particularly the Public Works mont,. that a very heavy cut in expenditure of, capital monies, was unavoidable, and that, in the meantime, they should assume that expenditure by the Department must be reduced by half, as compared with the previous year. Since those instructions were issued, and having regard to further altered conditions, it has been found necessary to recast the programme, on a fresh “assumption that less than half of tue half referred to, will he available, in other words, not much more than £1,000,000, apart from the separate funds found for M;|n Highways construction. x. The borrowed money appropriation under departmental control, will run into £5,542,000 this financial year. !Tlie following remarks refer in geni eral terms only to such works as rail- | trays, hydro-electricity undertakings, fj'roads and bridges, irrigation and '■ drainage, etc., these items being the ij trust of the Minister of Public Works, j / There are ether capital expenditures, such as railway improvement, post and telegraph extension, education buildings, and several other items more or less small in comparison, shown in the General Purposes Account, and to >. a less extent; affecting the separate ac- ■ counts shown in Mhe estimates, to which in a (general outline it is unnecessary to refer. It is beyond question that all must

fall into line as nearly as "humanly pospble, and the money available should he apportioned in accordance with relative importance of the works. •If To reduce capital money expenat. |ure from £9,542,000 and £2,800,000 ifi one year in itself presents difficulties. ■ But when, owing to our genera! position, it is necessary to reduce

to slightly over £1,0.00,000* expenditure in one year, the resultant disturbance created is very much more severe. However the country must face • the facts, and a survey of these facts, shows very clearly that there is no alternative other than to meet the situation as we find it at present, and as we may anticipate it in the immediate future. Therefore it is necessary to review completely, one? again, our activities in the field of development from these money resources, and an oppprtunity is afforded cf forecasting necessary adjustments, ar.d future policy. The cost of administration has already been considerably reduced, and in anticipation of the proposed reduction now under discussion, the staff, as distinct frem the workmen, has been ‘""‘reduced by 310 officers since the beginning of the present year. This will result in a reduction in the cost of supervision, of approximately £Bl,000, which works out at about twenty carper cent., ard is apart from the savings effected by the ten per cent, cut in staff salaries. As the activities of the Department decline there will he further savings.

HYDRO ELECTRICITY. The current estimates for 1931-32 sho’\ £1,37-1. C JO, which including £305,000 for working expenses, found from, raven- e, leaves £1,069,000, for works in hand. It is proposed .to reduce expenditure on new works to jess than £300.000 in the next year (1932-33), ard the reduction in money up ply will necessitate reducing hands •at Waitaki by two thirds or possibly even more. It will also involve curtailment in the extension of transdnissicifi systems. Some risk of over/IPadirig may he entailed, if there is a ijiarked increase in demand, hut it jXfoiild appear from information supplied to me that little harm will folToav/ may be inconveniThe Ifengfßltting out of the job will hiflcl to the cost, by reason of capital already expended remaining non-in-OiWeV-arniug for a longer period than '.formerly anticipated. I ‘3%'-f;t!ier respects, the work of con-' isir|efmn has reached a stage where, , if a' Ifalt in e pendittro has to he call-j ed the present is an opportune time. I There ai:- other additional irons* 'mission air! such like schemes contemplated, some of'#w;hich would no doubt make for more economic working, hut the---» ro,',,ji r *m f *nts can. T think be po 'potted, and, in the mean-j time, the Department will improvise and make the best of every situation when it .arises. Arapuni has reached a stage where

(financial and physical considerations demand completion of the power house, to its full capacity, and should be carried out ,and it is proposed to do so at the earliest practical date. The current e s timate s provide for <3700,000, and it is proposed to reduce this amount to £IOO,OOO for 1932-33. The effect of the reduction in the rate of expenditure will be a lengthening of the time for completing the Stratford-Ongarue line. The Department estimated that the work would bo completed about next August, but the reduction in money will postpone completion for a further H or 18 months. Tawa Flat current estimates provide £200,000, and it is proposed in the meantime, to reduce expenditure in this account for 1932-33 to £IIO,OOO, and instead of working four headings, on three -shifts as at present, it is intended to work two headings on two shifts. *' No money can be found irom the general purposes account for additions to open lines, and if there is any work of .this nature to be done it jnust be financed from the Railways "-account. If, however, it cannot be obtained from the railway finance, and it is found necessary to draw from the capital account, the allocations given herein will be learned to what extent.

HIGHWAYS. For the current year £240,000 was provided from borrowed mofiey for construction works on Main Highways. .The highways are in satisfactory order and work on thorn, for the present, must, generally speaking, be confined to maintaining them in good order. . Some works which the Board must continue ate the restoration of earthquake damage, or the rebuilding ,of bridg-L, 'Which have- become unsafe, and their useful life cannot be continued by any reasonable repairs. The money for these services, which after all -are maintenance, alt-hough exceptional maintenance in the form of reconstruction, and for any other works which the 'Board feels must be undertaken will -have to be- found from the surplus of revenue over ordinary maintenance expenditure, which I am confident will still be realised from petrol and motor taxation For 1931-32, £680,600 was provided on the estimates, and this sum must be reduced to £120,00 for 1932-33. Commitments already amount to £107,000 and only £13,000 wi'l be available for new work. IT'h ; s will be difficult, but in the meantime , curtailment is essential.

POST AND TELEGRAPH extension. The cum of £2so,ooo'was provided on this year’s estimates for 1931-32, It is proposed now to provide £30,000 foi expenditure in 1932-33. The increase in telegraph and telephone business has in the meantime steadied up, and it is hoped, the Department will be able to carry on with the- -sum inentionedi / LIGHTHOUSES AND HARBOURS. In 1931-32 £25,000 wa s provided, and it was proposed to reduce this amountto £4,000, which should be sufficient to cover commitments IRRIGATION. Dor irrigation £750,000 was provided on the current -estimates. The work is important, and will, when completed previde for increased settlement and increased production, and a -sum of £70,000 is considered essential. ROADS, BRIDGES, ETC. Excluding highways, the current estimates provide for £1,32a,000, and these works it will be necessary to curtail heavily. I propose to control expenditure on road works to £250,000. It will be seen iUt a very heavy cut is proposed in roading -expenditure, apart from main -highways. There are still many new roads required in the country districts that are essential to the reasonable economic existence of these who are already i'P on the ' aa< *’ and, in addition, new roads -are necessary to facilitate further land settle-

ment. . . For some years past we have hac in mind the desirability of modern alignments, easy grades, and substantial bridges, and believed that not on ) were modern road construction standards desirable, but even necessary, to everyday (life. . Shortage of money dictates that much changed policy must be pursued in the immediate future The position now is that wo must manage with the money available, and an ) 7 " 6 " work undertaken must be only what is j.pomred for immediate-needs. What money may be available for mailing in I mure will lie directed towards providing access to settlers, on much reduced widths, grades, and curvatures, and nevertheless constructed in such' h way as readily to permit oi improvement when that is possible. It is necessary to ensure that the money available is mado to reach as far as possible, and any thought or new formations of 'large dimensions must he discarded for the time being at least.

drainage and land IMPROVEMENT. Increased production must ever be kept in mind and with public works funds and whatever moneys are available, it will be sound business to direct expenditure towards improving the •" o-w-lvim; country. Mm-* of ns are aware that much of the lowlying country has only reached a state of partial development for product ion. It, is not too much to say, that by further draining and protection against

flood waters, the production from lands already settled, can be increased twofold. There are valuable reclamations of land that can still be made. Proposals embracing some 70,000 or 80,000 acres are before me. Surveys are in hand, and I feel it would be w-ell to direct our attention to carrying our this class of work, always having in mind, of course, the general balance of expenditure and return. There are otner lands of varying class, still capable of development, and much of this can be reclaimed from its natural state, into a satisfactory stage of production.

In 1 these days of stress it. is felt that every effort should be directed towards developing, at any rate partially, some of the clay and lighter lands of the country, insofar as money resources may be made available. The Government feels that of all the branches of development, the country will benefit to a greater degree by carrying through work, which, when under way, will make it possible to increase the volume of production, aim add to the rural population of the country. Therefore, from the total sum estimated to- be available from capital funds, a sum of £150,000 will be devoted to land improvement, and land reclamation.

CONDITIONS OF EMPLOYMENT Particularly in the past, year or so, it has been amply demonstrated that much of the work put in hand was mainly for the purpose of providing, employment for those in search ol work. As already indicated, the nature of the work provided has been mainly roading. Frequently the under takings have not,been considered from the point of view of immediate necessity, but have been entered upon foi two reasons, finding work for men, am, simultaneously taking a long view ahead of future requirements. . Both reasons have their justification and ordinary liumdn feelings should direct -the efforts of the Government to finding work for those who need, it. Deliberately to reduce the number ol men at present engaged on ordiuan public works is a very serious step, especially when it is known there i> but little opportunity for those leaving the works, to find other occupations immediately. In recent months, there has been a steady reduction of numbers employed, but the rate of reduction is by. no means commensurate with the incapacity of the Government to find the cash to maintain the present personnel If it is kept in mind that the reduction of capital [expenditure will approximate 75 per cent., and that, prior to; the contemplated reduction, some 12,000 men have been employed, it wiL be' seen at once, that the consequent reduction in man power that would follow, would mean roughly that only 3000 men would be provided for. Rather than adopt the method ol wholesale reduction, by dispensing with so many, it is felt that in all the circumstances, and to prevent undue distress, the better course would be to employ as many mop as possible, • in order that this policy may be fol--1 wed, it is proposed to turn the whole of public works undertakings on to a purely relief labour basis- until such time as conditions improve

Until the financial storm is over, the work provided on these works can only be looked upon as relief and shelter, By this means it wid be possible to provide many more men with Help, than could he done by maintaining tiie pres ent wage standard. All men employed on our works are provided with huts', shacks, and tents, and it can at least be said that men employed upon (Public Works have the .advantage of being provided with- hous ing and' accommodation at a minimum charge for rent. The Government regrets the necessity enforced upon it to do- this, but there is no alternative that is practicable in the present circumstances The following table gives a summary of the amounts that it is hoped to mako available from borrowed money next year, under the various headings, together with the relative figures for 1931-1932, and the total decreased provision in each case The details under the several heads are for convenience shown as follows: —(a) Class of W’ork , (b) Provision from borrowed money 1932; (c) Provided from borrowed money 1931-32 ; (d) Decrease: —

(a/ Hydro-Electric Supply (excluding working expenses), (b) £300,000, (c) £1,069,000. (d) £769,000. (a) Railways (new lines), (b) £IOO,000, (c) £700,000, id) £600,000. (a) Railways (other improvements and Flat), (b) £IIO,OOO, (cj £200,000. (cl) £90,000.

(a) Public Buildings, (b) £120,000, (a) Railways others improvements an a additions), (b) , (c) £820,000, (d) £820,000 (a) Roads (excluding highways), (b) £250.000, ’.(c) £1,325,000. (cl). £l,O/5,000. (c) £680,000, -(d) £560,000“ (a.) "Post and Telegraph Extension, (b) £30,000, (c) £250,000, (cl) £220,000. (a) Irrigation, Drainage and Lands Improvement, (b) £220,000, (e) 000. (d) £55,000. (a) Miscellaneous Works, Supervision, etc., (b) £104,000, (c) £322,400, (d) £218,400. (a) Separate Account, Main Highways Construction, (b) : ——(c) £540,000, (d). £540,(T0. Total (b) £1,234,000, (c) £6,082,000, (d) £4',848,000. _ Should tbe amount'of money 1 which can be borrowed . vary; either upwards or downwards necessary modifications wnl follow.