PUBLIC WORKS STATEMENT.

Patea Mail, 10 August 1880, Page 2

PUBLIC WORKS STATEMENT.

XOJrr.ll ISLAND HALLWAYS. The Minister for Public Works, Mr Oliver, made his annual statement on Friday night upon the progress and condition of Public Works throughout the colony. Having referred briefly to the Kuwakawa coal line, the Wlmugarci-kawa coal line, not finished through contractor’s delays ; the Waikato-Thames line, the Shortland section being completed, and the Wakato contract nearly so ; the Minister referred to works on this Coast, as follows : FOXTUX-XJCW FI.V.MOUTJI ItAII.WAY. The Kailway from New Plymouth was opened as far South as Stratford on the 1 Utli December, and a further section to Ngairc will, it is expected, bo open in a few weeks. Some other portions of this lino between Stratford and Carlyle are under contract; some arc being done by day labour, and between Carlyle and Wanganui the Waitotara contract is approachcompletion. The Waverley section is in hand, and the Carlyle wharf contract has been let, while some portions of the works in the neighbourhood of Carlyle arc now being prepared for absorbing unemployed labour. Commodious workshops have been built at Wanganui, and a contract has been made for a new railway station and wharf at Foxton. Wiai.IXUTOX-WOOJ)VIIJ.K J'AII.WAY. On the Wcllington-Woodville railwaj' the works of the Carterton section, over twenty miles, have been vigorously prosecuted by the Department, the average number of men employed being 275. It is expected that by .September next the whole distance between Wellington and Masterton will be open for trallic. The Greytown branch was opened on 20th May. With a view of Jiuding work for the unemployed in this district, some men have been engaged in earthwork and bushclearing on the Opuki section, beyond the Carterton contract, and on the Crofton section of the Wcllington-Foxton railway sometimes as many as 350 of the unemployed have been set at work. The number has now fallen below 100.

XAI'IEIMVOOUVILLK ]IAI I. WAY. The Napicr-Woodville Railway is nearly completed to Makatoko, about seventy miles from Napier, and the last contract of live and three-quarter miles will shortly be ready for public traffic. Works arc being pushed on towards Tahoraite, about 12 miles farther, and surveys of the country south have been completed for about 15 miles more. NAI’IKIt-WAULINCJFOIU). All examination of the country from Napier to Wallingford, through the district between Tukituki River and the sea coast has been made, but the country appears to bo very unsuitable for railway construction. MIDDLE ISLAND RAILWAYS. XBLSOX—IiKKV.MOUTU. The works at northern end have been confined to the completion of the railway connecting the City of Nelson with the port, and an extension three miles beyond Foxhill, by the Bellgrove contract now almost completed. At the Greyinouth end of the Stillwater contract, an extension

of the original Brunner Railwayfor threequarters of a mile, lias been fount! to be a work of considerable difficult}' and expense the contract price for 63 chains Icing £12,234 for formation only. The Harbor Works at Greymonth, which have been carried on as a part of the improvements designed to develop the coal industry in that district, were almost suspended for some little time, while awaiting Sir John Goode’s report, It arrived in March last, ami it is satisfastory to find that the work already executed lias been approved and adopted by him as part of his design. The Hokitika-Gieymouth contracts arc near completion ; the Picton-Huruni to Blenheim, is finished ; the Waipara branch is in progress ; the Malvern extension to Springfield Colliery is finished ; the Akaroa branch is partly finished; the Ashburton branch is partly open for traffic; the Opawa branch is in progress ; the Canterbury interior main-line is commenced only to the extent of building two bridges ; lines south of the Waitaki are suspended ; and extension is in progress on several branches in the Middle Island. USING THE UNEMPLOYED. The great depression from which nearly all our industries have suffered lately has thrown many workmen out of employment, and Government have been called on to alleviate the consequent distress by finding work for (bem on the railways and roads which arc in course of construction. We have thought it our duty to comply with these requests, and I am sorry to say that no less a number than 1,674 of these men arc now being employed at low wages in various parts of the colony. Although it is to be deplored that in a now country of such natural resources as New Zealand, this state of tilings should exist, yet it is by no means a new experience in the history of the colony. At various times during the last twenty years the authorities have found it necessary to afford similar temporary employment, but fortunately the need for the interference of the Government has in every case soon passed away, and has been succeeded by a large demand for labour in I ho ordinary industries of the country, ami at the highest rates of wages known in any part of the world. IMI’ltOVlNn HHOSI’KCT. I believe bon members will agree with me in thinking that this season of depression will pass away and give place to another period of prosperity not inferior to that which we have until lately enjoyed. The disoiganisation of the labour market is already beginning to work its own remedy, by bringing into existence new industries in the chief centres of population, and developing the self-reliant spirit of our working classes. There are also the most encouraging indications of the revival of goldfields industry, which may be of the greatest value to the colony at large. Meantime, it is satisfactory to find that, although many of the men thus employed by ns arc engaged in work to which they arc unaccustomed, yet from their labour the colony has obtained a fair equivalent fur the outlay. GENERAL PROGRESS IN PUBLIC WORKS. The sums voted in Parliament for additional railway works in the last session, exclusive of preliminary surveys for lines not yetanthorised,amounted t0£2,308,700. On the 31st March, £856,550 of this sum had been expended, and liabilities incurred amounting to £910,506, making a total of £1,767,056, and leaving an unexpended balance on last year’s votes of £541,644 Recognising the necessity for spreading the expenditure of the remaining Public Works Fund over a period of at least the next three years, and believing that, as some of (he railway works bad been adopted in limes of great prosperity Parliament would not disapprove in our changed circumstances of having an opportunity afforded of reconsidering them, I have not been in baste to press on the construction of now works. In fact, in the Middle Island only one new section of railway lias been commenced since the end of our last session. Many now sections were got ready for contract, and in some instances tenders wore invited and received, but the grave considerations connected with a falling revenue and increased deficit from our finished railways could not be evaded, and obliged us to defer the acceptance of some of those tenders, so that time might be given for re-examining our future railway policy. HOADS. The expenditure of the voles for roads in the North island has for the most part been entrusted to the various local governing bodies. The main roads under the

charge of the Government include the Great South Road from Auckland, the Taurauga-Taupo, and the Tanpo-Napicr Roads. On several other local roads a considerable amount of work has been done. The road works instituted on the West Coast between the Waingongoro and Stoncy Rivers, crossing the Waimato Plains, have been carried on very satisfactorily, ami the two sections of the road will probably meet in a few days. The character of the country is very favorable, no natural obstacles having been met. The cross road from Stratford to Opunakc through the bush, is also being pushed on, and good progress is being made. The amount expended on roads and bridges in the South Island during the past year is very small, and no new works of importance have been undertaken. SXADGIXC. Mr Firth, of Mata-mata, is removing snags in the Thames by his own efforts, a worthy example of self-reliance. w.vmi— HACKS. The expenditure upon water-races does not appear to have produced the large benefits which might naturally have expected from it. None of the companies subsidised by the Government have been a success, and in most cases the undertakings have been abandoned. The total expenditure and liabilities upon water-races upon gold fields amount to £441,663, and over £40,000 of tin’s gives no return. i X CJtEASI X(i COA r, IXD c s TH I KS. SAVIXi; OX r.OCU.MOTIVKS. Almost every month brings new discoveries of coal in some part of the colony, and it has become apparent that New Zealand is exceptionally rich in this mineral. oinmost important lines of steamers are now almost wholly supplied from the coal mines of the colony, and the more extended use of native coals will effect a saving of £BSOO on our railways in the Middle Island for the current yeai, in addition to an almost ecpnil amount heretofore saved on those in Ihe North Island. now TO WORK RAILWAYS. During the recess the management of the working railways has been the subject of inquiry by tbo Royal Cummissioneis appointed to report on the Civil .Service of tbc colony, and also to some extent by the Royal Commissioners on Bail ways. The reports of these gentlemen are calculated to he of great service, and point out many defects in organisation and practice, some of which have been already removed, or | arc in course of removal ; and the whole question of the management of the railways is under consideration in connection with the reports of the Commissioners. The Working Railways Dcpaitment began the last financial period under circumstances exceptionally unfavorable, heavy floods in the South having interrupted traffic over more than a hundred miles of line, causing loss of revenue as well as a large expenditure for repairs. DI.MIXISIIKD TH.UTIC. A diminution of trailic had ensued on the depression in commerce ; and the Government had been diminishing expense. The train service had been reduced 370 miles a year, and the staff by 265 men, those and other savings amounting on the year to £44,000. The expenses would be much farther reduced. DOSS OX i 'AI’JTAK. The railways gave a return last year equal to 2j; per cent, per annum on capital ; and as the colony borrowed at 5 per cent., there is a present loss equal to 2] percent, on the capital sunk in railways. The loss therefore on cost of the lines, which stands at £8,627,402, is at the rate of £237,730 per annum, and has to be furnished from taxation. In the prosperous years through which wo have just passed, wc did not seriously regard the railway deficit, but thought only of the immense advantages of railways in settling and developing the resources of the country. UXKQUAD DKXKFIT.S. The benefits of i ail ways are very unequally distributed, many districts being quite unprovided with them, while all have to contribute to the taxation from which the loss is made np. This charge on the colonial revenue is so great that it is a serious element in the expenditure of the colony, and it becomes questionable whether a desirable outlay in some of the departments of Government can be continued if onr railways be not made more nearly self-supporting. The failure to obtain a greater direct return from our railways, such as is looked tor in ordinary commercial enterprises, is no doubt mainly attributable to the smallness of our population. We are still a small community in point of numbers, and are thinly scattered over a wide extent of country. Our people arc so few that they fail to

furnish traffic enough, cither of passengers or goods, to make our lines pay at the ordinary rates hitherto current. We have already many more miles of railway in proportion to our population than cither England, France, the United States, Canada, or any of the Australian colonies. Taking the Middle Island population separately, the disproportion is still greater. In New Zealand our average receipts per mile of railway last year were £O4B, while in England they amounted to £3485 ; yet, even with these comparitivcly large receipts, the railway dividends in England only average 4A per cent per annum. ROW TARIFFS. Among the reasons for want of commercial success in railway working, is the needlessly low tariff adopted in many districts. Between two places to which my attention has been called, where before the railway was made the freight charged was £3 per ton, om railway rate is 10 s lOd ; in another instance the former rate was £O, and is now 17s 2d ; in another it has been reduced from £5 to 22s 2d. WHAT CAN UK DONE V Wc now discover that wc have gone too far, and find ourselves face to face with a state of things as unpleasant as it was unexpected. I hope I shall not ho misunderstood as advocating any illiborality iu the management of om - railways. The best policy is to reach the multitude. I fully adopt the opinion expressed by Mr Gladstone that As a rule (lie State, or individual, or company thrives the best which dives deepest down into the mass of the community, and adapts its arrangements to the wants of the greatest number.” The large use made of the railways proves that if our people were as numerous as the resources of the country warrant ns in expecting they will become, our railways would pay far more than mere interest on cost, even with our present tariff. The tonnage carried on our railways compares very favourably with the neighbouring colonics. The number of passengers on New Zealand railways last year was 2,932,279, being 578 per cent, of our population. The number in Victoria was 437 per cent, of population. Now, onr freight traffic is not capable of indefinite increase, however low the rate may be, nor can we raise our tariff beyond a fair payment for the services rendered, however much wc might be inclined to do so. Onr principal railways skirt the sea coast, and wc arc restricted in onr tariffs by the competition of water carriage. On the inland railways, too, the tariffs arc at present more strictly limited than thoy would usually he, because of the cheapness of horse food, and the competition of ordinary road vehicles. Kail way rates I hat arc only designed to bring in 5 per cent, on the cost, surely cannot ho considered high if competing modes of convo3 f anco permit of their adoption, Wo need not despair of ultimately attaining a good result. We have covered the I country with those stimulating and civilising agencies. In their neighbourhood settlement will extend population, and industries will increase, and then onr rail* ways will become, if we desire it, aids to onr revenue, instead of sources of temporary embarrassment.

SKI,UNO TIIK I! AILWAYS. A I,OSS OK MIM.IOXS. At present, however, there is a fooling of great dissapointment at the result exhibited by their yearly balance-sheets, and amongst other remedies, it has been proposed to sell the railways. Given a system of railways worked at u loss ; to end the loss, sell the railways. Nevertheless, 1 fear the proffered solution will not help us much, for it is clear that no company would buy our linos except at a price calculated to yield at least the current rate of interest, which at present may be stated at from 7 to 10 per cent. If, therefore, wc seek to sell our railways, which are now paying only ’l\ per cent, interest, wo shall have to accept for them a sum representing onl} r a portion of their cost. Probably we should have to face a loss of millions of money, and certainly wc should still bo liable for the payment of the whole of the interest as at present, while wc should abandon all chance of retrieving our position by improved management, and forfeit for the railway system the advantages of increased population and growing industries. IlKillKK UATK.S. Of course a railway company would try to charge a higher rate for carriage ; hut why conuut wc ourselves do that ? Why

should wc submit to a heavy loss of capital _to begin with, and then to the payment of rates as well ? Another, and not the least objection to the proposal is, that a company occupying such a position would be a great power in the State, whose influence would probably not always bo

wh-ldcd in the interests of the people. I believe that careful and intelligent management, and the natural growth of traflie, will yet make onr railways commercially succcssfu I. ROYAR CO. - .!MISSIONS. A very valuable report has been presented by the Bailway Commission. The Government. would not he understood as adopting implicitly the whole of their recommendations. It is perhaps hardly within the bounds of possibility that a report dealing with so many works and proposals in all parts of the colony should he accepted in every pailicnlar. For the present, however, even the restricted programme recommended by the Commissioners is far beyond onr means. The estimated cost beyond the present 1 inbill-, ties of completing the lines of railway authorised by Parliament is £0,900,200 ; that being the case, it becomes sufficiently apparent that wo must greatly modify onr scheme of railway construction, post poncing some important parts of it until population and settlement have largely increased, and until the railways already constructed have become more nearly self-supporting. sTomNd new works Wc have not the funds necessary to complete the lines already sanctioned, nor will onr ordinary revenue bear the increased demand which every additional mile of railway makes on it for yearly loss in working. Wo have no alternative, therefore, but to confine onr operations to the extension of some incomplete lines to such nearest points as will bring them into nsc ) and as far r.s possible make (he expenditure already incurred to some extent reproductive. Of the amount voted last year for public works no loss a sum than £2,350,729 was for actual liabilities which we found in existence and further expenditure to a considerable amount was made necessary by liabilities. Realising the position of the Public Works Fund wc have endeavored to minimise expenditure, and to spread it over as large a space of time as possible. Wc have stopped many new works, even after contracts had been prepared by the Department and tenders received. ITRRIC WORKS FUND. Nevertheless the country has learnt from the Colonial Treasurer that the state of the Public Works Fund is most unsatisfactory. In his Statement, the Colonial Treasurer showed that the total ways and moans on 31st March last were £3,202,410, and that the liabilities of the Public Works Fund on the same date amounted to £2,405,313 —reducible, however, by £315,703 advances in the hands of officers of the Government; f bus leaving a balance of £1,122,800 on the 31st March, 1880, clear of liabilities. Since 31st March, the ways and means have been augmented, by miscellaneous receipts and recoveries, £29,1)34, and during the four months ending 31st July, the liabilities of the fund have been nnavoidabty increased to the extent of £330.871. Wc arrive at £821,923 as the available balance on 31st July.

FSTI MATES FOR WOllKti. The Kstimates which I nin about to submit make a further demand on (his balance of £674,’-88, leaving £147.685 only for future appropriation from the Public Works Fund. Bearing in mind the importance of spreading the expenditure of the balance of loan over the next two years, wc should have preferred to ask for the appropriation of a much smaller sum than we have found it possible to do. The votes for the various works which we propose are designed to provide for the expenditure, up to 80th June, 1881. After that date, and until wc are in a position to become borrowers, the only sources whence wc can draw supplies for these purposes will boa portion of (ho proceeds of land sales, and (he saving from the estimates for the purchase of Native land —a saving which wc have reason to believe may be considerable, but which at present it is impossible to estimate. SCUK.MK OK XKW WOUK.S, I will now brielly summarise the works proposed : The present contract at Kawa Kawa will be completed. The Knnio line will be finished. The line from Kaipara to Tc Awamutu will bc completed fit for traffic. The . proprietory of constructing the Waikato-Thamos Railway has been raised by the Railway Commissioners, and the Government intend to have the subject carefully investigated. The line between Napier and Makatoko will be completed. The Wellington and Opaki line will be completed as far as Masterton, and provision made for the unemployed on the extension to Opaki. The station works at Wellington will also be constructed. The Foxton station and wharf on the Wellington and Foxton line will be completed.

WEST COAST WORKS. Sundry necessary works on the opened lines between Foxton and Kii Iwi will be executed, and the extension to Waverley, which is in hand, will be linishod. The works in the neighborhood of Carlyle will be proceeded with, giving work to the unemployed. The contracts between) Stratford and Hawera will be pushed on, and the formation toXonnanby will probably be completed within the present year. MIDDRF ISRAND. The extension of the line from Fuxhill to Bellgrove, on the Nelson to Greymonth line, will be completed. The Stillwater section will bo finished, and the Grcymonlh harbor works carried on. The Picton and Blcnhiem line will he completed at the Blonhicm end. The main line from Amherley to the Waikari Plains is to he finished, and nine miles through the Wcka Pass being reserved for the unemployed. A portion of the Oxford-Shcffield lino bo carried on by unemployed. The Opawa branch towards Fairlic Creek will he carried on by the same means. The Ellcsmcre section of the Little liiver and Akaroa branch is to ho completed. The only expenditure proposed on the Otago Main line is for stations and other works in progress. The Dmitroun branch is to be finished. The Hendon section of the Otago Central Hallway, which was opened to the unemployed about a year ago, wili be reserved for them ; there are about 700 men at work. I fear there is little prospect of a complete cessation in the demand which will he made on us for this kind of employment. WATER RACKS. The various races now in progress will be carried on. ROADS —'I’llK DRAINS. In the North Island, the proposed appropriations will admit of the road works on the Waimate Plains and other Native districts being continued, as well as for the maintenance in a serviceable state of certain main roads which it is necessary to keep open for (radio. In addition to the completion of the various works in hand, the road from Nelson to Greymonth and Westport is to be improved throughout, to render it fit for coach traffic, and make it an arterial line of communication between 1 lie north cud of the Island and (he West Coast. CnNCl.limNil 11KMAUKS. In concilium it I would say that, although the Government have found it their imperative duty to abate the speed at which public works have until lately boon carried on, yet wo believe that the lime is not far distant when the works now temporarily suspended may he resumed, an 1 those now proposed to he curtailed completed. The resources of New Zealand are so great, Miat for her there can bo neither retrogression nor standing still. But, Sir, it is incumbent on us to recognise that for a State, as for an individual a stead} - progress and an assured prosperity can only he maintained by obedience to the dictates of prudence.