PUBLIC WORKS

Hokitika Guardian, 23 December 1932, Page 6

PUBLIC WORKS

REORGANISING THE Ui!/£Aiv'l MENT.

EXPLAINED BY. MR COATES

WELLING!ON. December 22

“It lias been apparent that on account of tiis necessary reduction in funds available- for public wcrks heavy curtailment in the department’s activities was unavoidable and indeed that changed conditions had made imperative a general recasting of the whole public works organisation,” stated the Minister of Public Works, the Hon. J. G. Coates, commenting on the reorganisation of his own department, winch is new complete. This reorganisation will not involve any drastic retrenchment.

The money voted by Parliament for public works for tiie year ended March 31, 1930, was £8,21(5,717; for 1931, £8,007,179; for 1932, £6,403,405, and for the current year, ending March 31, £3,339,027,” added Mr Coates. “These figures indicate the extent to which reductions had to be made and of course corresponding reductions in the personnel of the department were also unavoidablo.

“Considerable reduction in staff have aiready been made, but further retrenchment is necessary. In September, 1231, 718 permanent and 881 temporary officers were employed. On November 1, 1232, those nuinoers had been reduced to 65(5 permnnnt and 339 temporary, a reduction of 105 permanent and 542 temporary, making a total of 847 officers. This leaves a total remaining staff in the department of 995, and further retrenchment now in process of arrangement will reduce this number to 973. It will thus be seen.that since April 1, 1931, the -staff has been reduced by 41 per cent. Cer-tain-internal reorganisations in various branches will enable additional economies to be affected and a total reduction cf staff by 50 per cent is in sight. SAVING IN ADMINISTRATIVE COSTS.

“The. saving aiready made in gross administrative costs, is considerable. For 1930-31 this charge was £507,000; for 1232-33 it will be £307,00&. A reduction of £200,090 in comparison with 1919-20, when the public works expenditure was the lowest for the past twelve years, is illuminating.. Then the deparment’s staff numbered 732 and the gross expenditure was £l,612,000. At that time the department had not taken over the maintenance and operation of the hydro-electric and irrigation schemes which have* since been completed. Now the staff is 702, excluding 221 engaged on hydroelectric operation and maintenance njid fifty on highways, and the estimated expenditure under all votes this year is £3,416,000, more than twice what it was in 1919-20. Furthermore in 1912-20 the department collected in revenue £51.(500, whereas this year the estimated revenue is- £B3O. This increase in revenue is largely duo to the increase in the sale of electric power consequent on the- coming info operation of the State’s hydro-electric scheme. This fact alone indicates how the conditions under which the department works have changed. It is not now purely a spending department, and every year the department’s receipts from capital expenditure is, as shown above, assuming large proportions.

“It must not of course, be a«sued.’’ continued Mr Coates, “that the Public Works Department deals* only with the expenditure of loan money. Tn 1919-20 loan money expended was nearly 89 per cent of the total expenditure, where?® this year the estimate is only 59 per cent, the balance being highway and other revenue mcnqjs. The department’s activities are many and varied. For this reason it is not possible to reduce beyond a certain point.”