PUBLIC WORKS

Nelson Evening Mail, Volume LXIII, 2 August 1929, Page 5

PUBLIC WORKS

THE PRESENT PROGRAMME TAUPO RAILWAY I would next like to bring under the notice of honourable members the salient features of the present programme of public works in which was sunk the major portion of the loan capital borrowed during the year. As in the case of the Consolidated Fund, the programme of public works for the year was well advanced when the Government assumed office, and for the most, part the arrangements made by our predecessors had to be left to run thencourse. The Government, however, lost no time in investigating the position, and as a result of these inquiries it was deemed advisable immediately to stop the work on the' new Taupo Railway and the Palmerston North Deviation. After very careful consideration of all the relevant factors the Government came to the decision that the large capital outlay involved in these works was hot justified at present. As regards Taupo, this was not a trunk line, and it was quite clear that the transport needs of the district concerned, which are relatively small and likely to bo so for many years, were certainly not of a magnitude to justify the building of a railway. Concerning the Palmerston North Deviation, it was found that transport conditions had altered considerably since the work was placed on the schedule of improvement works, and that the expected increased volume of traffic, which would have justified the deviation, had not materialised. Further, the estimate of the cost had been greatly increased since the work was originally authorised, and not only would the deviation, produce no extra revenue to meet the additional interest burden but it would actually increase the working costs of the railways. The, work was clearlynot justified at present, and should not have been started. It may be added that much of th e expenditure, roughly £200,000, already incurred was on account of land-purchases and permanent earthworks, which can be used should it be found necessary to proceed with the work at a later date. LOAN EXPENDITURE J Another matter which I attended to as soon as possible was the institution of a better control over the expenditure of loan-moneys oil public works. To attain effective financial control the Loan Budget must be considered over several years and not merely from year to year as has largely been the case in the past'. EXPENDITURE ON CAPITAL WORKS The net expenditure on capital works for 1928-29 was £7.659,580, comprising the following main classes of outlay:— ... £ Railway construction, additions, and improvements 3,179.391 Main highways and roads ... 1,822,922 Hydro-electric supply 965,560 Telegraphs and telephones ... 624,414 Public ' buildings, including schools 602,392 Irrigation, land and river improvements 282,806 Other public works 182,095 £7,659,580 RAILWAY CONSTRUCTION It will be observed that nearly half the expenditure was incurred on account of railways. On railway-construction, including a proportion' of the. overhead costs of'the Public Works Department, the expenditure was £1,066,454. The policy of the Government in regard to railway-construction, in accordance with the mandate received from the people at the election, is to accelerate the construction work and complete the, trunk lines as qujckly as possible. This is desirable from all points of view. In the first place, some £4',440,000 has already been sunk in unopened lines, and it is only good business to* get lines completed and earning revenue. In the meantime the capital sunk is a. dead asset. Then, an acceleration of the construction work means additional employment, and that is very necessary at present. Thirdly, the completion of the lines is going to assist materially in increasing the production and trade of the country, and generally in promoting the prosperity of the Dominion. Of the lines in question, starting from the north, there is the completion of

Okaihan-Rangiahua Section, which is an extension of the North Auckland Trunk lino to the Ilokianga .River. Over £420,000 has already been sunk in this .section, and the estimated cost of completing it is about £200,000. In the same district there is also the linkingup of the Dargavillo isolated section. Considerable work has already been done on this connecting-link, but it will cost some £265,000 to complete it. .Next there is the completion of the gaps in the lino from .Napier to Gisborae. Over £2,000,000 is already invested in the unopened sections of this lino, and it is accordingly very desirable that the construction work should be pushed on as fast as possible. There was considerable diversity of opinion as to the location of the lin c from Wairoa to Cisborne, and after fully investigating the position the Government decided upon the coastal route, and the matter is now definitely settled. To complete the line from Napier to Cisborne will, it is estimated, cost about £1,800,000. A largo part of the line to link Up Taranaki with the Main Trunk has already been constructed, work having been carried on from both ends. The intervening gap lies through some difficult country, but the whole line should be finishedfin three or four years. The estimated cost to complete the work is £700,000. SOUTH ISLAND MAIN TRUNK LINE Coming now to the South Island, there is the completion of the South Island Mam Trunk line by bridging the gap between Wharanui and Parnassus. The Government is satisfied that the construction ot this piece of line, estimated to cast about £2,350,000, is necessary to complete the South Island system. About £43,000 has already been expended on preliminary work, and as soon as the surveys now being made can be completed the construction work will be pushed on vigorously. There has been much discussion as to whether this section of line will pay, but the discussion has all been on the basis of treating tha new piece of line as an isolated section, instead of a necessary part of the trunk railway isystem. One could doubtless find many/sections of the existing main lines winch, considered as isolated sections, could be shown to be hopeless propositions as revenue-producers; yet no One would suggest that they should not have been built. From the paying-point of view the trunk lines must be regarded, as a complete system, and not a series of independent units. I propose later in this statement to place, before honourable members the whole financial position of the railways, and th'e Government's policy in regard thereto. NELSON LINE Returning in the meantime to rail-wav-construction, the remaining sections in *th e programme are those necessary to complete the lines from Nelson to lnangahua and Westport to Inangahua. Approximately £350,000 lias been spent on the uncompleted sections to the end of the last financial year, and th e estimated cost of completing them is about £2,170,000. This estimate has probably been upset by the recent earthquake, the full effects of which ar c not yet known, and the proposed route of these lines will have to be re-examined by the Engineers. ' With a view to speeding up the construction work all found, the vote for railways-construction for .this year will show ,an increase of more than 150 per cent, over the amount spent last year. In addition to railway construction, there was also expended out of the Public Works Fund last year an amount of £213,405 for additions to open lines. This expenditure was for rolling stock, dwellings, purchase of motor buses, additions to station buildings, and other facilities. Then, out of the special account under the Railway Improvement Authorisation Act, 19i4, a total of £1,899,532 was spent on various capital works. Nearly half the amount, or approximately £900,000, was sunk in the new workshops at Otahuhu and Petone, and additions and alterations to the. existing workshops at Addington and Hillside. These workshops, when completed, will have cost about £2,450,000, against which there will, however, be credits amounting to approximately £130,000 for land released for other purposes. Other heavy items were the new station and improved approach line at Auckland, the Tawa Flat Deviation at Wellington, and the electrification of the Lyttelton Tunnel. OTHER WORKS The next largest item in the schedule of public works expenditure i* main highways and roads, which absorbed £1,822,922 of loan moneys. This, with the amount of £1,530,000 provided out of taxation, to which I referred earlier in this Statement, makes a total of approximately £3,350,000 provided out of public funds for roads last financial year. Of the expenditure out of loan moneys, £936,496 was expended out of the Main Highways Construction Fund, mainly for the purposes of improving road communication between important centres and to tourist resorts. Considerable sums were also expended in laying down highclass pavements on roads in the vicinity of the main centres, which roads carry heavy traffic. Including overhead costs, the roading expenditure out of the Public Works Fund amounted to £886,426. For the most part, the money was spent on developmental roads in the more remote districts. For this year the vote will be increased to about £950,0G0, of which £75,000 will be specially reserved for roads to outlying districts, where people are still labouring under hardship through lack of access. Concerning hydro-electric supply, the year's expenditure on capital works "was considerably lower than in the previous period, but nevertheless substantial progress resulted. It is proposed to provide approximately £1,000.000 for expenditure on all construction schemes this year. SCHOOL P.UILDINGS As to public buildings, last year's expenditure of £602.392 included' £227,041 for departmental buildings, post offices, mental hospitals, etc., and £375,351 for schools. Tne erection of schools in newly settled districts and in areas where the population is increasing rapidly has been given first consideration, and these activities absorbed a large proportion of the funds available last year. Nevertheless, a good deal was accomplished in the way of remodelling schools with a view io providing separate class-rooms for each teacher, and incorporating in the buildings more effective lighting, ventilation, and heating. In addition,,a few buildings of different open-air types have been erected with a view to discovering whether such buildings aro suitable to the climatic conditions of the different parts of the country. Large sums have been required in recent years to provide additional accommodation in our secondary and technical schools, and the past year was no exception to tho rule. It is the intention of the Govern ment to proceed with the improvement of school buildings as fast as financial considerations will permit. It is highly desirable that the children attending school should be housed in well-ventilat-ed, well-lighted, and comfortable schools