PUBLIC WORKS STATEMENT.

Poverty Bay Standard, Volume I, Issue 270, 27 October 1884, Page 2

PUBLIC WORKS STATEMENT.

(Continued.)

The Hon. Minister for Public Works having dwelt upon the necessity of having the coalfields of the Colory developed, then proceeded to state : — PROPOSALS FOR THE FUTURE. The proposals I am about to make are based on the principles which, after long discussion with my colleagues, I have decided in submitting to the House as the foundation of our future Public Works Policy. There are two points which we must bear distinctly in mind ; Ist, that there is great work for us to do in the way of railway system, of feeding the railways, and of opening up the country by the construction of roads and bridges, and at intervals when the Colony needs it of increasing the population by immigration, which to speak moderately cannot be in any sense exhausted for two or three generations. To put it in another form the people have before them, for a larger period than it is necessary to look forward to, the task of colonizing the country. They have not to do this by parts, with intervals of inaction, but by steady and continuous action. The second point I have to ask the House to remember is, that inasmuch as we are not engaged on spasmodic work, but on one that will last our life, and the lives of our children’s children, we must endeavor to bring to its performance as much of system as is possible. If we consider these two points jointly it will be evident that they really amount to no more than this, that we must steadily pursue the functions of colonization as fast as, and no faster than our means permit. It will also be evident that though we may make prognostication of the extent of the future money at our disposal, an exact determination can only be arrived at from year to year. But in order to obtain a general index of the future means, it is necessary to know what is the policy of finance that is to be obtained. The Colonial Treasurer has already at some length enunciated the views of the Government on the subject, and I may be permitted to supplement what he has already stated. Taking the p. esent year as a starling point, the object, after this year, will be to bring the expenditure charged on the Consolidated Fund within the means of that fund, without the aid of the Property Tax. We foresee that that can easily be done by shifting to local expenditure some of the present charges made on the Consolidated Fund, notably the Charitable Aid expenditure and some other small items, let us say amounting with the Charitable Aid to some L100,0t)0 a year. It is clear that the local bodies cannot undertake this without an additional revenue and to dispense with needless points of controversy at present, we may suppose that the LlOO,OOO is supplied by either a Properly Tax or a Land Tax. But other revenue will also have to be supplied to local bodies, as it cannot be satisfactory to continue for a lengthened period the policy of making and maintaining roads and bridges out of borrowed money, which has been virtually what has been going on for some time. The borrowing for roads and bridges cannot be abruptly brought to a conclusion, but its cessation must be an end kept in view. I need not further pursue the subject of providing local revenue, but may come to that which is of most moment to my present object considering how we are to find the means of pursuing colonization operations. If we accept the starting point of the year, which I have assumed, we shall have to ask ourselves how, without increasing the taxation we may have the means of meeting the additional annual charges on the money bo -rowed for the work of colonization ? There are three sources of increased revenue, or increased means to which to look forward. First, the natural net increases of revenue from year to year; second, the increase of revenue from new railways, and also the increase in revenue (apart from natural increases) from existing railways, as they are fed by new railways, roads, and bridges. And third, the annual saving from reduced rates of interest on loans converted. Apart altogether from the saving of the expenditure of sinking fund with which I have in this statement nothing to do now, there should be next year and for some years to come, at least, a net natural increase of revenue of L 50.000. There should also be over many years an average additional saving of at least L 20,000 annually, on account of reduced interest on converted loans. Some years it will amount to a great deal more from the other source. If we pursue the wise policy of endeavoring as soon as possible to obtain returns from borrowed money expended, we should obtain considerable increases of revenue apart from the natural increases. When the North Island Trunk Railway is finished, the increase from feeding to all the fragmentary systems in the island will be enormous. Putting this prospect on one side, I anticipate that if you allow me to pursue the works with a view to early returns, there will be during the next two or three years an average increase in railway revenue of at least £25,000 per annum. We have then a net natural increase of revenue of L. 50,000; an addition each year to the savings on account of conversion of L 20.000, and L 25.000 increase on account of new works; in all L 95.000. The Government considers that this justifies our borrowing a million and a half during next year, and that the probabilities are that in future years the increase of revenue will justify at least additions of from one to one and a half millions a year. The additional burden of this million and a half will amount at present rates to L 60.000; but probably in a year or two the money may be borrowed at 3| instead of 4 per cent. But it will be said I have forgotten the additional charge of the third million to be negotiated next year. The third million, however, has not been forgotten ; but on considering the difference between this year and next it has to be remembered that the interest on the money obtained by temporary expedients and anticipation of the loan will cover the amount of interest on the third million. It is a million and a half that has already been stated that we propose to take authority to borrow, and I may say we also propose that it should cover expenditure up to the end of March, 1386. I have not taken into account the annual charges of the North Island trunk line, one million loan, because up to the extent of LlOO,OOO I think we can provide for that line out of the million and a half, and the Government wish to defer negotiating that loan until the expenditure on the line is very heavy. At first, with all eagerness to push it on, it will be impossible to spend much money on it, whilst, if the whole sum is brought into the Treasury there will be the old danger of its being spent for something else. In the manner of stating the votes proposed to be taken for railway works this session, two changes have been made, which it is believed will be very benefical, not alone in facilitating the work of the department and enabling the minister to realise the state of affairs, but also in letting hon. members see the amount of money which is proposed to be spent, during the year in the actual construction of railway works in their several districts. The changes which I allude to are as follnws : The taking of separate appropriations for additional works required on opened railwayas distinct from new works for extension of railways; and the taking of separate appropriations for the permanent way and rollingstock required for all railways including additions to opened lines, instead of as hitherto, including their permanent way and rolling stock in the votes for construction of

works. As regards the first of these proposals, namely, the taking of separate appropriations for additional work's required on the opened railways, I think hen. members will bear me out in the assertion that it was very difficult in the past to realize from the amount of the vote taken how much new railway work might be reasonably anticipated, as a very large proportion of the sums which have been voted for each railway from year to year has been expended on additions and improvements to the portions of railway previously opened. By taking the votes entirely; as is now proposed, hon. members will be enabled to see not only how much money is proposed

to be devoted to each new extension of the railway system, and to additions to each opened railway, but will also be enabled to realize the total sum required from year to year for additions to the opened linesj as a whole, including additional rolling stock. As regards the second proposal which I have alluded to, namely, the taking of separate appropriations for permanent way and rolling stock, as distinct from the appropriations for construction works, it is also believed that this also will be a great help to hon. members, in enabling them to realize the extent of construction works, which will actually be done in the various localities ; besides having the additional advantage of enabling the departmental accounts to be kept in a mannei* which will be more easily understood than by the method now in vogue. This present method consists in charging the permanent way and rolling stock when ordered from England to a suspense account, in terms of section of the Immigration and Public Works Appropriation Acts passed each year. And it has the daily and hourly disadvantage that the Minister can never tell what the state of the vote actually is from time to time, the whole amount of the suspense account being a charge upon the whole class of votes for railways, but the amount chargeable to each railway being indefinite and undeterminable. By the system now proposed of taking a separate for permanent way and rolling stock all these complications will be avoided, and the statements of accounts from time to time under votes taken for actual construction of works will show clearly the amount actually expended and also the amount still available for expenditure. Upon that class of works on the Ist April 1884 there was avail* able a balance for expenditure (assuming that advances outstanding are cash) of L 877.912. This does not include a payment of L 752.003 due from the land fund. The outstanding liabilities on the 81st March 1334, after deducting a large sum for Native land purchases, not likely to be wanted for some time, amounted to L 1,313,559. Between the 31st March and the 31st August, 1884, further liabilities of L 256,446 have been incurred, making the total liabilities 1.1,549,996. I have already stated the available balance at the end of March last was L 877.912. Deducting this from liabilities, there is a deficit of L 672,084. But then there is th* third million of the 1882 loan, and, assuming it to come into the year’s account, and to net par, there will be a balance of 1.327,906 only available for the votes of this year beyond liabilities. With the exception of this small balance, therefore, the votes of last year practically disposed of the three million loan, and not only of that, but of the L 250,000 raised under the Local Inscribed Stuck Act, the proceeds of which have also been drawn into the fund. As far as I can see from careful examination it was intended that the three million loan should last out the year 1835-86. The financial year ends on the 31st March, and the Act prescribes that one million o fly shall be borrowed in the three years, 1888, 1884, and 1885. The third million could not have been expected to be available many weeks before the end of March. Thus it must have been intended to spend money before it was borrowed, or that a third million should last till 1886 ; but then Government declared they would not spend money before it was borrowed, so it must have been intended that the loan should last next year; whilst, as I have said, with an additional loan of L 250,000 there is only for new votes of this year L327.81G. It is necessary I should point all this out, bo that we may have on record the point at which the new loan which the Government propose intervenes, as also that you may realise that a great part of that new loan is required to fulfil txie schedules of the Three Million Loan Act, besides the L 250.000, which has also been absorbed on the other hand. So far as the votes are concerned, it is only justice to my predecessors to point out that the votes of each year include much more than can be expended with the year. A system has grown up of voting sufficient to cover the probable cost of contracts, whether or not these contracts can be executed during the year. If I continue the same system and take large votes for new works, hon. members must understand that in the few months that remain of this year only a small portion will be spent, so that up to the end of March next I estimate we shall not entrench upon the actual cash proceeds of the proposed new loan of a million and a half, much, if any more, than L 200,000. From that loan the Government is in fact providing for the expenditure for the year 1885-6. The House will agree with me that it is sound policy to provide the money before incurring the expenditure. We propose to take authority for a loan of a million and a half as has already been intimated by the Colonial Treasurer. Adding that to the available balance at the end of March last and the third million of loan of 1882 we shall have a total of L 3,377,912 available for expenditure from the Ist April last for liabilities and new works ; or deducting the liabilities to the end August of L 154,996 there will be L 1,827,016 left for new works which is another way of stating the balance of L 327.916 out of the three million loan added to the proposed loan of one and a half millions. I purpose to ask the House to vote in all. this year for liabilities already existing and for new undertakings to be presently entered into the sum of L 2,810,289 made up as follows, for Immigration with liabilities at the end of August amounting to L 62.280, we ask for a vote of L 100.000; for general departmental expenses, with liabilities L 12.759, we ask for a vote of L 30.057; for railways we ask for a vote L 1.567,516. Out of this sum we have to charge L 908.898 for existing liabilities, and it also includes L 255.284 for additions to opened lines. But of this sum of L 522.584 there are existing liabilities of L 345,295. We have also to pay out of this vote for rails, for renewals on working railways the sum of LlOO,OOO, and there are existing liabilities under this head of L 48.868. The LlOO.OOO has, however, to be repaid to the Public Works Fund by the working railways. For roads with liabilities of L 339,464, we ask for a vote of L 737.000. This includes L 304,200 for grants in aid under the Roads and Bridges Construction Act, on which there are liabilities amounting to L 204.200. For waterworks off goldfields, with liabilities of L7.6G3, we ask for a vote of L 12.857. For purchase of Native lands, North Island, we ask for a vote of L 90.000, that being the amount estimated to be required to meet the payments which become due during the year now current. For telegraph extension, with liabilities of L 20,423, we ask for a vote of L 29.322. For public buildings, with liabilities of we ask for a vote of L 171.104. For Lighthouses and Harbor Works, with liabilities of L 26.985, we ask for a vote of L 55,916. For charges and expenses of raising loans we ask for a vote of L1G.500, that being the amount estimated to be required to cover the cost of raising the last million loan which was floated in England.

The necessary information with regard to individual road works, etc., will be found in the estimates shortly to be laid on the table of the House. The Honorable Mr. Richardson, after pointing out the intention of the Government with respect to the various railway linos, expressed himself as follows with respect to the NORTH ISLAND TRUNK RAILWAY: The Government has on more than one' occasion expressed its conviction of the expediency of hastening forward to the utmost the construction of the North Island Main Trunk railway, and the route of the line haying now been decided, I have been enabled to issue instructions for surveys to be proceeded with for the first section south of Te Awamutu, and I hope in a few weeks to be prepared to call for tenders for this work I shall leave to my colleaguethe Native Minister the task of obtaining land along the line. It will be necessary in any case to commence the construction at the other end of the line, and it will greatly facilitate the pro* secution of the work construction if the Wellington-Manawatu Railway is vigorously pushed on. If the House consents to vote the amounts I have intimated, we now intend to ask for railways, we shall have I expect by the end of this financial year a length of 1,400 miles of railway open for traffic, as again.-t 1,401 opened up to the 31« t March last. Hon. members are aware that large sums have been expended on roads to the North of Auckland, in lieu of expenditure on railways. This course was decided on many years since, it being considered that roads were of more immediate relief than railways. T.ie time has come, however wW? the people of t <e North of Auckland are very earnestly Bppe ding for an extension of the trunk system of railway through their dis-

triets, with the view to connect the various settlements. It is urged with great force that the timber, gum, coal, and other minerals which the Northern districts possess, together with the capabilities of the soil of a very large quantity of land would make such a railway at once remunerative. The means of conferring a large amount of indirect advantage on existing settlers, besides inducing a considerable increase of settlement. The Government think the subject demands attention and will cause inquires to be made, in ordei to place the House in possession, next session, of accurate information concerning the route, and prospect of additional railway communication. I do not propose to go into all the road votes in detail. It is, however, necessary that I should say a few words as regards the total amounts proposed to be asked for under three of the principal classes of roads, namely the Roads North of Auckland, the Grants in Aid under the Roads and Bridges Construction Act, and the Roads to open up lands before gale, as it might otherwise appear that these amounts are excessive. For the roads north of Auckland our proposal is to take a vote for the whole of the balance of the amount already allocated in the loan of 1882, which amounts to L 103.800 and to distribute this sum amongst the various local bodies to be expended by them during the remainder of this and the whole of the next financial year. This is done in order that they may make arrangements for the works being executed during the most suitable period of the year, as it has been found that the annual allocations of small amounts made in midsummer was the effect of running the construction into the wintertime, and also of necessitating its being done in a very piecemeal fashion. For Grants in Aid under Roads and Bridges Construction Act the vote proposed and the one which so materially swells the total amount asked for under the heading of roads is L 304,200 and it has to be explained that this sum includes a liability of £204,200 being the total outstanding balance of all allocations made up to the end of March last, together with LIOO,OOO which we propose for allocation this year for Main. Roads. This will leave the item of district roads still to be provided for under the permanent appropriation of LIOO,OOO, made by “ The Roads and Bridges Construction Act, 1882.” The balance available for allocation under this head, including some L 1,803 of debentures already paid, being L 43.987. For the Roads to open up lands before sale the amount proposed to be voted is L 133,308, that being the balance of loan allocated for 1882, with some small additions recommended this year. I venture to express a hope that next year such a system of local Government will be introduced as will make it unnecessary to come to this House for such an amount of votes for roads and bridges. In conclusion, Mr. Speaker, I shall only add that I hope when the time comes round for the next Public Works Statement I shall be able to show that the department generally is being administered with greater economy than at present, that I may have been able to place the tariff on the railways in a more satisfactory state, and that I shall be able to submit a Bill providing for the creation of nonpolitical boards of management which will be satisfactory to this House and the country. I have, I am sure wearied the House, and perhaps I have trespassed too far on its patience, and it only remains for me now to thank you, Mr. Speaker and honorable members, for the indulgence accorded to me.