PUBLIC WORKS STATEMENT.

Oamaru Mail, Volume IV, Issue 1140, 10 December 1879, Page 2

PUBLIC WORKS STATEMENT.

The Hon. the Minister for. Public Works (Mr. E. Oliver) delivered his Public Works Statement in the House of Representatives last, night. . Starting out with a statement of the works in hand, he gave a brief review of the progress made during the year upon all the lines. Very much of this summary could be of no possible interest to our readers, and we therefore purpose merely giving such portions of the Statement as are of very general'and purely local interest. In referring to the W&pahi-Tapaiiiu contract, about which so much has already been heard, the lion, gentleman was very temperate, when the strong remarks made by liis colleagues and others '.vhen in opposition are taken into consideration. We are told that, by letting the contract upon the condition that no payments were to be made until the line had been completed, it would enable an extension of the system, and obtain such an increase of price fur Crown lauds in the neighborhood of now lines, made under similar as would pay the coat, of Construction." "I grieve to say," said the speaker, " that these expectations have not been fulfilled. The works which were pushed on with great vigor for some time are now almost entirely suspended, and the contractors have stated their inability to finish their contract without progress payments being made to them." The lion, gentleman then stated that contracts were let almost to the full extent of the; votes last year, while in several cases the votes were exceeded. He enumerated the several sections that were let by piecework and day labor, and added that on these " there are about 2200 men engaged at wages somewhat less than current rates." Reference is next nu\de to the coal explorations made during the past year, and to the value of the coal deposits in vp.rious districts, this portion of the subject being concluded with a remark that " further development of the principal coal mines of the Colony, by increasing facilities for shipment, deserves the most careful consideration." Turning next to a review of the doings of the railways in working order during, the year, the lion, gentleman gave a short statement of the' heavy expenditure necessitated for repairs and renewals, chiiefiy owing to damage caused by -floods in ' Canterbury and Otago. A large number of sleepers, chiefly American timber, had required removal during the past four' months, but the' permanent way was reported to be in good working order. The hon. gentleman's remarks upon the work done by the lines is of so interesting a naturg that we reproduce them in full, as | follows:—"The traffic returns for July, August, and September show a considerable falling off compared with the corresponding period of last year. No doubt this is owing to the financial depression,; but'much may be expected from the grain traffic of the approaching season. I am glad to say that we are extending the- use of New Zealand coal on- our rail.ways, and after the expiry of existing; contracts for the supply of Australian coals our arrangements will enable us to dispense to a large extent, if Inot altogether, with' imported fuel: The gross receipts, the working expenses, and the cost of maintenance, considering the headlong and rapid rate, at which our railways .have been constructed, the uncultivated lands through which a large portion of them pass, and the smallness of our population, it is no doubt a matter for congratulation that the contribution towards interest on the cost of construction is so large. ; Jt may, hqwever, be as well to ascertain _ Jiow the account really stands. I find that the cost' of railways open for traffic 'at the' end of the last financial..,year is- L 8,6.90,417 0s including 7L(>33,228 03. 4d .for. interest to date. The gross traffic returns amount to Li-,729,955 33 7d, from which must be deducted Xi 1,250,797 4s 7d for working expenses and' maintenance, leaving L 479,057 18s for payment of interest on loan by which railways were made. Table 11 i which will be appended to this Statement when finished shows that for the past year the receipts have been L758,09G 8s 2d,, and the working expenses L 545,478 103, leaving a surplus of L212,G17 13s 2d: The amount represents 2.054 per cent, on the average cost of construction, ieaVing 2.940 per cent, to be be supplied from other sources. The duty is placed oil; us of considering how to make our railways pay a larger contribution towards their cost, by skilful and economical management, and by submitting all future proposals for new railways to the same rigid scrutiny as private investois would make, and firmly rejecting them unless a 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 adoption of more expensive modes of constructing railways and greater speed-.iri^transit 1 than" was fct' first intended, thus necessarily interfering with tHe £'ay-

ing quality of these undertakings. To quote from the statement made by my predecessor in 1878, " The difficulty commenced from the moment the Legislature repealed that cardinal condition of the public works policy that in the event of the proceeds of any railway failing to meet the interest and sinking fund on - the co3t of its construction, the property in the district should be rated to make up its deficiency." The proposal of the .Government, as honorable, members know, is to devote the proceeds of sales of land to local and colonial public'works, but if this fund is to be supplemented to any great extent by additional Sorrowing to complete the general scheme 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 cf iratiiig districts beneficially effected must ' eventually be resorted to. Sir, wo do not think that the proposals for the various lines of railways "which are now in course of construction have beeii subjected before their adoption to so close a scrutiny as their importance demanded. It lias, moreover, become apparent that the funds which will ba at our disposal for the prosecution of these works will bo adequate to complete them. We think that the time has come when our whole future policy with regard to public works must be considered, and it is therefore our intention to ask Parliament for j authority to appoint a Royal Commission to make a more full and complete investigation into the cost and economical I value of the several works commenced and proposed than would be possible for the Government unaided to complete before next session of Parliament. Government hope, by means of the report of these Commissioners, to be placed in a position to make proposals to Parliament for the prosecution of public, works upon a plan carefuliy adapted to the circumstances of the Colony. Our efforts must now, therefore, be earnestly directed to the economical management of railways, and amongst other means I think the keeping of the accounts of the various sections separate and distinct, so that it may be seen what each is earning and spending, will have the goo.d effect of arousing emulation among the officers, as well as of showing on which of the lines a different system of working' should b.e adopted." The Minister next dealt with the proposals for the future, and here rather a dismal picture was drawn. The speaker said thai. " our resources are inadequate to bear the continued strain of so rapidly constructing these expensive works," and the Ministry did not propose asking authority for many nio?e works. He then said : " The funds at our disposal for the next few years will be only sufficient to meet the necessary requirements for miscel-; laneous public works already authorised, at a rate proportioned to our resources, and to the point at which they will bo of real use to the community. Our position is briefly this in respect of the L 5,000,000 loan and the balance of L 517,120, including credits, with which we began the year. The positive engagements on contracts entered into and liabilities which must be met, together with the expenditure already made during the current year, will absorb L 3,800,865, including ■L1,210,802 for land, and L 154,791 payable to counties in the provincial districts of Canterbury and Otago in respect of stoppages from the surplus laud revenue of the districts. If finished in the stipulated time, these works will require L 2,559,082 of this amount to be paid before the 30th 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 out of the new loan is L 1,872,046, and the only method of adding to this for- public works in addition to receipts from land sales is by diverting to this purpose a sum from one of the other objects for which the loan was rLiirhnvisHCl It is my duty to inform the House that the uiulersbuiding on which the Loan Agents are likely to obtain the L 0,000,000 loan is such as

will preclude our going upon the English money market for further loans fur a period of throe years. It is imperative, therefoye, in the interests of settlement, that the expenditure of this loan should be judiciously spread over that period. that no less a sum than L 2,350,729 7s in our Estimates is for liabilities which we found in existence upon oiu' assumption of office, and a largo portion of the remainder is for works which are necessary to make available." Though the Government might have desired to curtail the expenditure, they felt bound to ask for appropriationt which would be required for carrying on the sections already in course of construction. A list of the new works proposed to be undertaken during the year is next given. These are chiefly limited to new sections of railways already in course of construction in every portion of the Colony, Glancing down the list, the only reference- we find of works proposed in this part of the Colony is contained in the foilow.iug brief sentences : —• " 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 Livingstone, Palmerston to Waihemo, Qlutha to Catlin's River, and Edendale to Toi Tois, will all be proceed with." We are told that tenders will be called for a further contract on ; the Otago Central Railway, and that the East and West Coast line " will not be lost sight of, while no special portion can for the present be begun,' 1 No details.of .mileage and cofjt of the various works are given of the works to be undertaken ; but these are proposed to be given in a table attached to the printed statement. Then follows the following remarks with reference to district railways : " Honordble members will regret to learn that nearly all the railway companies formed under the provisions of the District Railways Act have been compelled to suspenid 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 responsibility the expenditure already made will be lost. Some of these branches would form useful portions 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 their lines, and, in, the event of ■ satisfactory arrangenieilts being made to purchase them far th 9 Colony." On water-races ia' proposed tp, Expend L 39,883 up.Pfl works'which, " while they •promise ta be- beneficial, cannot be expected to be directly remunerative." The Statement concludes with the following sensible remarks ;— '■ I now come to our proposals with regard to roads. We lay great stress upon these, both in promoting a solution of the native difficulty in the North Island and as fostering permanent settlement of the country in connection with the administration of a liberal land law. ■ Unless we steadily pursue a policy of progress, by. opening up the. country with roads leading to our main lines of railway, as well as in parts of the country where we :are. 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 ad; ministration 1 of- our land -laws, 1 we ihus't look under existing circumstances .for a re-establishm'ent' ol' '-confideirce 'ahd a

healthy pursuit of our industries, more perhaps than to the extension of works of a costly character, for which tho funds may not be immediately available."