PUBLIC WORKS STATEMENT.

Nelson Evening Mail, Volume XIV, Issue 283, 10 December 1879, Page 1 (Supplement)

PUBLIC WORKS STATEMENT.

|The Minister for Public Works, the Hon. [Mr Oliver, made the following statement last night .- — Sir, — On the 7th of Augu.t my predecessor, Mr Macandrew, made his Public Works Statement to this House, in which he shortly summarised the works of the Department for the last financial year, but avowedly confined himself to suoh facta aa were, in his opinion, needed to accompany the application of the loan then authorised. I shall now, by tlie permission of the House, give a brief account of tho progress of our public works up to a more recent date; and then indicate the opinion ofthe Government on the course which it is our duty to pursue. BAirW AYS, NOBTH ISLAND. Taking the railways in their geographical order, we begin with the Kawakawa line, 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 tbe wharf, where the coal is put into barges and conveyed to the ships lying at the deep water anchorage, eight miles below. Tbe first contract on the Whangarei-Kawa line ia within a few weeks of completion, and the work of the platelaying will be begun as soon as possible. Ihe survey of the proposed Helensvillo- Whangarei Railway has now been begun, and during the Summer tho whole of the country will be thoroughly examined. It is expected thab the wharf at Helensville will be completed in about a month, which will provide a very necessary accommodation between Riverhead' and Newmarket. The work is in progress along the whole 22 miles, and should be finished in about ten months. If in the same time the Newmarket junction station could ba finished, railway communication between Auckland and the Kaipara waters would be completed. A large reclamation contract is being carried out. to obtain increased station accommodation in Auckland, aad a site for railway workshops has ben bought at Newmarket. The branch line to Hamilton has been opened for traffic, aad in a vary short time the southern aad of the Kaipara line will be finished to within two or three mile 9of the confiscated boundary. Some works are being carried ou at Grahamstown and Shortland, and Natives are employed at piece work on another seotion, about two miles long, further up the Thames Valley. The work of the Napier-Manawatu railway is being pushed on south of Kopua, and 64 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 Kaiawi, nine miles north of Wanganui, and a furthor seotion of the thirteen miles is being constructed. In a few weeks the Stratford contract on the Waitara-Patea line will be finished, and the journey from New Plymouth to Wanganui will then be an aff-ir of one day only Surveys are being carefully made north of Carlyle, and this line, desirable for strategic and ather reasons, between Waitara and New Plymouth on the north and Carlyle, the port of Patea, on the south, may be finished at no distant date. The worka on the Wellington- Woodville railway in the Wairarapa district are being pushed on vigorously. The contract having been abandoned, its completion is being carried on by the Public Worka Engineers. Theee works and the formation on the Greytown branch are so well advanced that the line may be open for traffic as far as the latter place early in February. The railway wharf at Wellington and the workshops at Petoni are drawing near completion. Machinery for tbe latter has arrived and will shortly be placed in position, giving facilities for repairs as well as for the economical tn.nufacture of many articles at present bought at a high rate. Surveys of tho Foxton and of the Wellington-Foxton line are being proceeded with, and some work has been done near Wellington by day labor over a length of pearly five mile:. MEDDLE ISLAND. The original Publio Works scheme for the Middle Island was furnished in the last financial year, communication by railway being established between Christchurcb and Invercargill. The western railways in Southland, however, tha construction of whicb was taken from the Provincial Government, and some small extensions of the General Government lines are not yet complete. With the exception of the Rivertou-Orepuki branch, this will be finished during this financial year. A connect ion is being made in tha Nelson and Fox Hiii line with the Portat Nelson and Inland an extension of three miles from Fox Hill is in progress. The Picton and Blenheim line is bein? carried into the town of Blenheim. The harbor works at Greymouth, which may be regarded as an adjunct lo the railway system, seem, as far as they have been completed, to answer the purpose for which they were intended. From the Engineer's report it would _eem that tho employment of a dredge has materially facilitated the works, and re. duced the cost of these improvements. The works in progress during the year on the Amberly-Bluff railway consisted chiefly of extension of stations, workshops at tbe large towns, and increased wharfage at Port Chalmers. A large expenditure has been proposed in constructing 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 wiil be so much worn that it would not be worth while to u.e them on another line. Short extensions are made or are in £rogreßß of tbe Malvern, Awara>ko, and Green Ismd 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 tbe line was completed. It was thought that the adoption of this method would enable us to definitely extend our eystem, and to obtain such an increase of price for Crown lands in the neighborhood of the new lines made under similar conditions as would pay the cost of construction. I grieve to say that the.c expectations have not been fulfilled. The •'.orks which were pushed on with great vigor for some time are now almost entirely suspended, and tlie «ontractors havo stated their inability to finish ■their contracts without progress payments being made to them. BAILWAY- ACTHOBIBED LAST XEAB. Contracts were let almost to the full extent of the votes on nearly all the lines authorised last year, and in several c_6ee the votes wer. largely exceeded.

Some sections were let by piece work and day labor Rt the Weka Pa.s and Albury in Canterbury, on the Livington branch and thd Otago Central railway, and at Kaiwarra iv Wellington. On these Hoes there about 2300 men engaged at wages somewhat less that the current rates. Ifc is certain that the number will rapidly become smaller as the summer advances. BOADS. Certain main lines of road in the North Island are being maintained, such as the great road at Auckland, the Tauranga road, the Taupo-Napier road, and some other short lengths of road in the Native districts. The Q-overnment expenditure on roads and bridges in the Middle Island" last year was comparatively small, having been almost confined to Westland ond the northern end ofthe island. ■WATEB HACKS. Detailed reports, up to the 30th June, on tha Government expenditure in aiding mining enterprise have already been laid hefore 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 £357,169, exclusive of £29,234 by way of subsidies. Of the former sum £70,626 haa been handed over to the Thames County Council as a grant, with an addition of £10,000 from the vote of the current year. It has also been arrunoed to hind over the debt of £11,000 due to the Government from the Carrick Water Race Company to the County of Vincent. The total receipts" from aU water races amount to £15,427, exclusive of £2945 refund of subsidies and interest thereon, beiog equivalent to aa average of about 1 per cent per annum on the outlay from the date ie first became productive, a very unsatisfactory result; still tbe collateral advantages are considerable. The Nelson Creek and Waimea Races, worked by the Government, were the meuus last year of obtaining 25,800 ounces of gold aud employing about 700 men. COAL EXPLOBATION . The mo3fc important work of this ela.a which has been undertaken duriug the pa.fc year is the examination of the coal beds ofthe Mokau distriot by Dr. Hector, who reports that the coal formation there is of considerable extent the outcrop having a width of over two mile*, and extending from° Kawhia Harbor towards tho upper part of the Wanganui River. Coal seims crop out on the banks of tho Mokau river varying from two feet to six feet ir. thicknejs and the quality is excellent for steam purposes, I_\ tons of Mokau coal having been proved by Dr. Hector to do as much as 2 tons of the best Waikato coal. In connection with the district in wbieh coal and limestone abound an extensive depo.it of brown hematite has been discovered by the Geological Surveyors at Mount Peel, in tbo province of Nelson. It is 50 feet wide, and has been traced for a distance of over three miles. Ihe coal measures of the Tokomairiro district have also been examined, as regards their relation to the auriferous cement between the Woolshed Crock and Tuapeka, but no new mines have yet been opened in this field. A new mine has been opened at Fernhili, Green Island. The Kawa Kawa coalmine at the B.iy of Islands is undergoing development, and tho coal is rapidly acquiring an established position in the market as a valuable steam coal. A .haft recently Blink has disclosed the existence of two seam. 4 aud 9 feet thick of superior quality, and at a greiter depth than any previous working in tho Waikato coalfield. The company whicb were working the Kupa Kupa have opened another mine on ths opposite end of the Waikato river, and indica .ious of an improvement of the quality of the coal with increasing depth have also been shown by racent discoverers. The heavy works undertaken by the Westport Colliery Company for developing the rich coalfield of the Mount Rochfort district are making rapid progress, ond in a few months it is expected that the market will receive supplies from this source. The further development of the principal coalmines of the Colony, by increasing facilities for shipment, deserves the most careful consideration as a means of fostering an industry that will profitably employ at home a large sum of money, which is at the present time sent out of the Colony for the purchase of foreign coal. WORKING BAILWAT3. During the first few days of July, heavy floods occurred in Canterbury and Otago, doing considerable damage to lines, partially suspending traffic, and causing a heavy outlay in repairs and renewal. Tbo permanent way is reported to be in good working order, eicept on some of the branch lines whicb, owing to the lightness of the rails and sloeDers used in their construction, are becoming seriouslyimpaired. A very large number of sleepers have required removal during the last four months, and it is worthy of note that they were chiefly American timber. These sleepers were only imported as un experiment, and at a time when the pressure was great, and the local supply wholly inadequate. The traffic r. turns for July, August, and September show a considerable falling oif compared with the corresponding period of iast year. No doubt this is owing to financial depression, but much miy be expected from the grain traffic of the approaching seasou, which bids (air to be a prosperous one. A good harvest and the revival of trade, symptoms ot which aro appareat, would speedily produce happier results. I am glad to say that we are extending the use of New Zealand coal on our railways, and after the expiry of tlio existing contracts for the supply of Australian coal, our arrangements will enable us to dispense, to a large extent if not altogether, with imported fuel, and save several thousand pounds a year. In the Public Works Stutement which was lately made by ray predecessor, full particulars were given ofthe length of the railways open for traffic. The cost of their construction, the gross receipts, the working expenses, aud tho cost of maintenance, and considering tlio headlong and rapid rate at which our railways ha?e been constructed, the uncultivated lauds through which a large portion of nearly all of them pass, and the eraallness of our population, it is no doubt a matter for congratulation that the contribution towards interest on the cost of construction is »o large. It may, however, be as well to ascertain how the account really stand.. I Unl that tho cost ofthe railways open for irjtffi.. at the end of the last financial year ij £3.920,417 including £6;-:},228 for interest to date of opening. The gross traffic returns amount to £1,729,955, from whicli must be deducted £1,250,797 tor working expenses and the maiuteuance, leaving £179,057 for payment of iuterest on the loans of which these railways ware made. Tiible No. 11, which will be appended to this Statement when

printed, shows thafc for the pasfc year the T.oeipti have been £758,096, and the working expenses £545,478, leaving a surplus of £212,617. This amount represents 2.05-4 per oent on the average coat of construction, leaving 2946 per cent to ba supplied from other sources ; and, sir, we all believe that New Zealand is a country of such great resources, thafc in the course of years even those railways which are now the farthest from paying, will become remunerative. In tho meantime, however, the inhabitant* of districts which have no railway are taxed to pay for them as well as those who inhabit more favored places. How burdensome thia charge has become was lately shown by my hon. colleague the Cobnial Treasurer, on the duty pkced on us of considering how to make our railways pay a larger contribution towards thoir cost by skilful and economical management, and of submitting ail future prooosals for new railways to the same rigid scrutiny as private investors would make, and firmly rejecting them unless . strong probability can be shown that they will prove remunerative. It must not, however, be forgotten that the demands of the public have forced on the Government the adoptiou of a more expensivj mode of constructing railways and of greater speed in transit than was at first intended, thus necessarily interfering with the paying character of tbese undertakings. No doubt great collateral advantages are gained by tha construction of railways ; but, after all, the practical test of their usefulness really is their being or not being used, ff, therefore, it is found that on auy railway the traffic is so sm -11 that great lon results from its working, it may, I think, be assumed that it is badly managed, or thafc, being useful only to a few, it ought uot to have been constructed. To quote from the statement made by my predecessor in 1878, the difficulty commenced from "the moment when the Legislature rejected that cardinal condition of the Public Works policy that iv the event of the proceeds of any railway failing to meet interest and sinking fund on the cost of its construction, the properly in the district should be rated fo make up the deficiency. The proposal of the Government is, as hon. members know, to devote tho proceeds of sales of land to local and colonial publh works ; but if this fund is to be supplemented to any great extent by additional borrowing to complete general schemes of railways, there is no doubt in my mind that either those already constructed must be made to approach more nearly to a paying condition, 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 hive been subjected before there adoption to so cloee a scrutiny as their importance demauded Ifc haa, 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 bas come when our whole future policy with regard to public works must be considered, and ifc 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 tho several works commenced and proposed, than it would be possible for the Government unaided, to complete before lieX. ae-s.oa of Parliament. The Government hopo by means of tho report of theso Commissioners to be placed in a position to make proposals to Parliament tor the prosecution of public works, upon a plan carefully adapted to the circumstances of the Colony. Our efforts must now be earnestly directed to the economical management of the railways, and amongst other means I think the keeping of the accounts of various sections separate and distinct so that it may be seen what each is earning and spending, will have the gooi effect of arousing emulation among the officers, as well as ot showing on which of the lines a different system of working should be adopted. Proposals por the Future. Sir,— -My predecessor has had the gratification of proposing aud initiating many new works of great magnitude. To me has fallen the unwelcome task of showing that our resources are inadequate to beau 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 begh) mauy new works. The funds afc our disposal for the uext four years will be ouly sufficient to meet the neccessary requirements for miscellaneous public works, aud for carrying on the works already authorised at a rate proportioned to our resources, and to the point at whioh they will be of real use to the community. Our positiou is briefly this :— Iv respect of the live million loan, and fche balauce of £519,220, including credits with which we began the year, the positive engagements on contracts entered into, aud liabilities which must be met, together with the expenditure already made during the current year will absorb £3,800,865, including jJ.1,210,802 for land purchase, and £154,701 payable fco the Couuties iv the provincial districts of Canterbury and Otago iv respect of stoppages from the surplus laud revenue of those districts. If finished in the stipulated time these works will require £2,559,082 of thia amount to be paid before the aoth June next, and the remainder of the liabilities, excepting a portion of those for land purchases within the following year. The balance, therefore, which is available oufc of the new loan is £ 1,8 72,046, and the only method of adding to this for public works, is the addition to the receipts for which the loan was authorised. (?) I have stated generally our intentions, aud the principles which we believe must guide our proposals. Whatever may he the opinion of the House as to the expediency of the course, we must, to a large extent, be guided by circumstauees 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 five million loan, is such as will preclude our going- upon the English money market for a period of three years. It is imperative, therefore, in the interest of the settlement, that the expenditure of this loan should he judiciously spread over that period. Our proposals for expenditure will he placed in detail before you. I regret to state that although au earnest endeavor has been made to keep the estimates withiu a reasonable compass, they reach a very much larger sum than honorable members will probably expect. It will be seen, however, thafc uo less a sum than £2,35G, 729 in our estimates is for liabilities which we found iv existeuce upon our assumption of office, aud a large portion of the remainder is for works which are necessary to make available those sections already iv course of construction. However much we; have desired to coutract tha larga

expenditure to which the' colony .i£tiq_ritaiitted we have felt bound to ask for appropriations which wo are advised will be required for the. Abo ife purpose • but should Parliament agrte to/, ohr proposals, it will be ottr ahrious endeavor to limit the actual expenditure dirritig the cutt-efat year considerably within fche amount Of the Vote. I will proceed, Sir to briefly indicate the * principal works intended to be carried out during the chrrent year— RAILWAYS.. Kawakawa:— Another section is ; nearly ready for tendering. It ia propose! to go on iroraocliately with tho work, its prosecution boingan^bliga tibn imposed on the Government under an agreement between the Sup^nntebdent of Auckland and the proprietors of fche Kawakawa coal mine ratified by an Act of the General Assemblyjthje proprietors under agreement being bound to pay six per cent of the cost Irrespective of the agreement, however, thia work would be a very desirable one, developing as it will one of the most important gold fields in tho colony. Whangarei ..0 Kamo-Plains has been prepared for the second section extending into deep water, and tenders will soon be called for Kaipara to Punui. lhe whole ot this work is. now under contract with the exception of the station at the Newmarket junction. Tenders have been received for this work and their, acceptance is only awaiting the passing of the estimates. Tenders have likewise been receiyed for levelling and draining the site at Newmarket on which it is proposed to errect the district workshops as soon as authority has been obtained from Parliament. Waikato to the Thames — It is intended to construct a bridge over the Waikato , and a section ftom . Hamilton East Orders for the bridge material will be sent to London by ?n early mail. Napier to Woodville— lenders have been received for the platelaying on the section south of the present terminus at Kopua the acceptance of which ia awaiting the passing of the estimates. A further section wifi' be put in hand with a view to connect Wellingfccii-with.'Wood-Tille. It will probably not bo possible to domore this year than complete the line to Masterton, hut arrangements will be made for laying the permanent way on the Greytown branch, and tenders will be called for the erection of the necessary stations so as to open the line and branch as nearly together as the state of the work will allow. Surveys of the extension of the line beyond Masterton will be proceeded with. Bunnythprpe to Woodville.—A proposal has been received £rom the Emigrant and Colonists Aid Corporation to construct a portion of the main line connecting the East and West West Coast railways, with a view to open up the valuable timbei: ed lands through which it passes. The portion suggested is from Buftnythorpetothe Manawatu gorge, and you will be asked to give the necessary power to enable the Government and the Corporation tb enter into arrangements somewhat on the terms indicated in the proposal now laid on the table. Wellington to Foxton.— The necessary extension of the wharf and station at Foxton will be undertaken, and the work on the Crofton section near Wellington will be proceeded with by day labor. The surveys now going on from Foxton will be continued to completion. A line from Palmerston. to join the Wellington and Foxton lino is also being- surveyed Foxton to Carlyle.— The sebtion from Kai Iwi to Wai totara is under contract, and the acceptance of a tender for the next section to. Waverley is awaiting the passing of the estimates. The gap of about nine miles thence to Carlyle will be surveyed and plans made ready for tendering as soon as possible The formation of the branch line from Greatford to Bulls and the extension of the Taonui siding through about a mile and a half of timbered laud is under consideration. Carlyle to ' Waitara.— lt is proposed to complete without delay the remaining sections between the port of Cajlyle and Hawera, and from thence to Stratford. A portion of this line is being executed by piece worky it having become expedient to do so owing to the temporary unsettlement of the ordinary avocation of some of fche 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. Nelso.: to Greymouth— It is intended to call for tenders for a section afc each end of this line, and to carry on the Greymouth harbor works' more vigorously than circumstances have rendered it possible during the past year. Greymouth to Hokitika— The continuance of this line will be kept steadily in view. Westport to Ngakawau— 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 the expenditure incurred on this line turned to profitable account. Picton to Hurunui— ln addition to completing the line to Blenheim, a section to the south towards the Awatere will be surveyed and advertised for contract. Hurunui to Waitaki —The main line through the* Weka Pass to Hurunui Plains will be complet^dLJand 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 sectious will be gone on with, viz., one at each end and one southwards from the White Cliffs branch. Waitaki to Bluff— Further station accommodation will be provided at the principal centres, and increased wharfage at Port Chalmers. The branch lines from Oamaru to Livingston, Palmerston to Waihemo, Clutha to Catlin's River, and Edendale to Toi Tois, will all be proceeded with. Waipawa to Heriot Burn— ln order to facilitate the opening of the line to Tapanui and Kiereby and 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 the contractor to ensure the completion of this work. Otago Central— Tenders will be advertised for a further contract in continuation of tho Wingatui and Hindon sections. This will finish the heaviest works in the Taieri Gor^e and bring the line into the open conntry of the Fulton district. Western Railways— The works on the lines irom Otautau fco Nightcaps, Lumsden to Mara, and Riverton to Orepuki will be steadily carried on. East and West Coasts— This line will nofc be lost sight of, and while no special portion can for the present be begun, the surveys will be 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 ths greatest advantages. In the

absence of tho fullest information it would evidently be impossible to give a trustworthy estimate of the cost Of this undertaking. I have abstained from bnrdening 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 Table No. 1 attached to the printed statement. This table is intended to form one of the schedules to the Immigration and Publio Works Appropr_ation Bill in compliance with the provision in section 9 of the proposed public works 1879, and thia Bill if adopted will practically provide the guarantee sought to be obtained by Parliament in the Railway Constraotion Act of last year. D istkict Railways. Honorable members will regret to learn that nearly all the Bailway Companies formed under the provisions of the District Railways Act have been compelled to suspend their operations owing to the general financial depression and the 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 the Government assume their responsibilities the expenditure already made will be lost. Some of these branches would form a useful portion 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 thoir lines, and, in the event of satisfactory arrangements beirtg made, to purchase them for the colony. As the residents inthe 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 the 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 lines proving commercially successful. As the rating power is intended to be retained by Government, the risk will.be reduced to a minimum, the Government being already liable to pay interest at 2 per cent per annum. Water Races. The vote proposed to be taken for water races is £30,883. This sum will be expended as indicated in the Estimates on works which, while they promise to be beneficial, cannot be expected to be directly remunerative. I now come to our proposals with regard to roads. We lay great stress upon these, both'as promoting a solution of the Native difficulty in the North Islahd, and as fostering the permanent settlement of the country. In connection with the administration of a liberal land law unlesa we steadily pursue a policy of progress by opening up the country with roads leading to our main lines of railway in parts of the country where we aie not likely to be able 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 now settled upon them. To the revival of immigration and the encouragement of an influx of small capitalists coupled with the active administration of our land laws we must look under existing circumstances for a re-establish-ment 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 appropriations under this head. In conclusion, Sir, I have only to add that I should have made this statement much earlier inthe session if there had been any certainty as to the funds which would be at our disposal. Even 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 become known to us, but the advanced period of the session and of the year forbade any further delay. Sir, I hive to thank you and the House for the patient attention which you have given mc.