Public Works Statement.

Thames Star, Volume XIV, Issue 4523, 4 July 1883, Page 2

Public Works Statement.

The HbnVWi j>W. Johnston said~Mr Speaker,—Whe^M last I submitted i similar statement my brief experience as a Minister led me to consider favorably the suggestion of the Railway Commission of 1881, that the administration of constructed railways should be handed over to a board of management, but the, considerable outlay which it has been requisite'to make brings me to the belief that only;* Minister directly responsible to this JE^otise should be entrusted with the powt>r. of making it. The power to make alterations in fares and freight, which I have ased to some extent .during the recess should also, I- think, remain in the hands of a Minister directly responsible to the House. Government purpose asking the' Legislature to sanction the appointment of another Minister, and this will enable, such an arrangement to be made as will! permit of a Minister of, Railways to devote his whole attention to this branch of the Administration. The Treasurer has informed hon. members that the balance of the -Public Works Fund in hand on 30th March, 1882, was £924,865. There has been odded a sum of £989,897, being the proceeds of debentures for £1.000,000 which were sold in January last, thus making a total of £1,914,762. Tbat~out of this fund there had been spent.during the year the aum of, £897.037, and that consequently the Public Works Fund amounted at the close of the last financial year to £1,017,725. He reminded them that of the t>Lal annual expenditure upon roads and harbor works last year there was voted £1.251,830, of which £574 935 has been .spent, and there were liabilities outstanding on the 31st March last, amounting to £439,593; and in addition to these liabilities there had been transmitted to the A-trent-General for the purchase of rolling stock and permanent way authority to contract to the amount of £210,205.. . About 40 miles of :

Kaiiways

were, opened for traffic during the" year: I|^ miles on the Whangam-Karao line, and 38w miles on the Hurunai-Bloff section, 'mMng-\i>it^y<b^meii''f6f rtWlßjd of 1373 miles. The sections between Waverleyand Manutahi,l6 miles, from Oxford to Mai-' fern, llf miles, and from Albnry to Creeki 10§ miles; are on point of completion. The Whaiigarei Katno line was opened for traffic in November, and the Kawakawa line is nearly |completed. -The directors of the coal companies have been applied to, iv accordance with the Act of 1880, to ascertain if they are prepared to take a lease of this line. At Aacklaad a contract has beeplet for reclamation of a s|te for a suitable station. 'The contract hag been taken over by tbe Harbour, Board, and is expected to be finished this year. The contracts for the erection, of a bridge at Te Aroha. and forwards between Morrinsville and Te Aroha have been let,'and it is intended shortly to invite tenders for plate laying on the Hamilton and Morrinsville and Hamilton,and Cambridge lines. An extenson from Mas'erton to Opibi has been let by contract to be finished in De cetnber, and a contract has been let for a railway bridge near Woodville. FoxtonNew Plymouth : It is hoped that this section will be ready this month. A portion of the gap described in last year's statement as lying lie* tween Manutahi and Hawera has been made the subject of a contract, and it ii proposed to calf' for tenders at an early date for the remainder, about six miles. This will complete the main live from Foxtoh to New Plymouth. The Minister then gave in detail the various works accomplished during the year on the Picton-Hurunni and Hurutiui-Bluff lines. Surrey! are in progress to assist in deter*

'mining the* route of the Northern main trunk line. Four parties are now engaged — one on the line recommended as suitable, from Hastings to Taupo, and thence to TVAwamutu; one portion (the inland line) starting from near Marton or Fielding is proceeding northwards, and two on the line between Taranaki and Te Awaunutu. With respect to public works in tbe Nort.li Tsland :—At the end of the current year, with the Kamo and Kawaklwa lines finished, the Foxton-New Plymouth line nearly finished, the unfinished portion of the Waikato-Thames line in progress, »nd the gap separating Napier and Wellington lines reduced, the Colony will recognise that the effort it | has made during 11 years for railway" | construction has achieved a large part of the results striven for, and that the necea«< sity for annual disbursements .will have become much less. So far as regards con* tinuation of the main trunk line the Government is pressing forward the steps to obtain the information necessary [ to enable Parliament to come to a decision as to which of the routes should be adopted. lam not in a position to submit any recommendation, but, of course, pro vision 1 ft>r the necessary surveys will be asked for. In the- Middle Island the extension of the main trunk line North as far as the Bed Post, which extension the Government recognises to be desirable, whetherl the line from Cook's Strait connect -with Canterbury at one ferminsil point or another will bo decided by tbe route ultimately adopted. The Govern ment cannot come to a decision upon this question of routes, until the Legislature has settled what effect shall be given to the resolution passed by the House'last session that-the principle of specially 'axing property increased in value by the construction of public works with public money is just, and to the recommendation of the Select Committee, that all public works to be commenced thenceforth shall be undertaken on condition that property which may.be specially benefitted by such work, shall be subjected' to such special charge. The Government has carefully considered ttus subject, and intend* to submit a nvasure bearing übon the matter. The question of committing the colony to the' East and West Coast .Railway', involving a it does, an expenditure of about two millions, and probably an annual loss in working, requires that the Government shall declare t its views without delay. The Legislature , has determined the rate of expenditure out of loan shall not exceed £1,000,000 per annum. In addition to such expenditure as under the North Icland Main Trunk Railway Loan Act it may from time to time authorise, and in the opinion of the Government en -expenditure at this rate is as much as we can prudenily afford. - The Pubic Work* Fund is practically allocated to specified workg, and cannot be diverted, and the expenditure upon the works will proceed at the rate named. The Government is of opinion that the immediate commencement of the construction of tbe East and West Coastline is not of such urgency as would justify an attempt to raise a special loan for the purpose, but Crown lends within 15 miles on either side' of .the line will be reserved from sale, so.th-t, if in the. future the Legislature should determine to construct this railway, no part of the public estate to be benefited will have been alienated. Whilst making provision for some important > COLONIAL BOADS, and placing on the estimates a portion of tbe amount allocated to, roads north of Auckland, it is not the intention of the Government to ask the House to make any further special grants in aid of County roads and bridges, believing that in the future all the assistance afforded to- local bodies shonld be under " The Boads and Bridges Construction Act." The unexpended balance of the previous year's vote will be placed upon the Estimates, but for the, future such funds as this House may set aside for roads and bridges will be made upon a system defined by law. ■■ -;:'

EECEIPT3 FBOM BAJLWiYS : Tbe list year show a very gratifying increase, having; risen from £892,026 in 1881-82 to £053 347 io 1882 83, an in crease of £61,321, and this despite tbe fact that the farmers enjoyed during the jear a considerable concession on rates of freight for grain, reductions haying been made,in 1881 •mounting to about £49,000 per annum, which.mainly affected last-year's receipts'and over-112,000 tons receiving tbe advantage of the further reduction which was made last year. The use of the,rail way is, steadily growitg, the increase in the number of passengers carried during last year, as .compared'with the previous year, being 371,901, and 1,157 season ticket-holders. The increase ia , tonnage hauled being 127,079 tons, and in j the number of live stock carried 136,020. The expenditure outof loan upon farther improvement toopened lines was £145,000. The increase last year in railway expenditure absorbed rather more thati the increase in receipts. In 1881 82 the, expenditure was £523.000;; last year it was £90,281, or £11,526 mere than the estimate, —For the current year,"l have estimated • the expenditure at £634,000., The receipts I have estimated' at" £1,020,000, or £66,653 mon> than they amounted to last year, being about the average increase -for . the last' three years. The total expenditure on opened lines to 31st March last, was £10,470,894. The net return derived therefrom was £360,526, or at a rate of £3 Is lOd per cent. In the North Island the net revenue was £7,378 or £2 Is per cent., on a capital expenditure on opened lines of £3,478,781. In the Middle Island the capital cost of the opened lines was £7,004.316, the net revenue £280,048, or at the rate of £4 2s per cent. Last year the net revenue from North Island railways was £68,126; from those in the Middle Island,' £309,800, The interest on the gross outlay on railways, opened and unopened, for 1881-82 was £3 7s 3d per cent,, for the year 1882 83 it is £3 3s j 2d per cent. I will beg the House to glance back three years. In 1879-80 the receipts <were £763,572, the expenditure £580,030. Since then we have opened a further length of 186 miles, we are doiug over 50 pcr 1 cent, more work, and our J receipts have increased by £199,774,whi15t increase in our expenditure is only £12,791. With reference to the advantages to individuals which have accrued in the past, the Government does not intend now to make any proposals for it is not practicable to suddenly seize, for the State, a share of these advantages without inilioting nnm> ! berlesd wrongs; but, with regard to the future, the case is different, and we are free to consider, unembarassed by any apprehension of committing injustice, what share tbe community may be entitled to of the wealth created by the construction of railways with public money. In seeking

the simplest and fairest course to adopt, the first suggestion is—that the State should re purchase all the land for a certain dis'ance on either side of the proposed lines at a certain increase upon the Property Tax valuation. Valuations for taxation purposes are usually low, and, on the other hand, compensation for expulsion should be liberal Perhaps compensation to the dispossessed landholders of 25 per cent, more than the valuation for the Property Tax would not be ineqni~ tabl#, and, when railways are extended through country suitable for settlement, there can be no doubt that the re-sale, in moderate sized farms of the land so taken would produce a profit sufficient to make a considerable contribution towards the

cost of the railway, and moreover, .would bring into existence a traffic large enough to cause the railway to be a source of considerable increase in our production, and from the revenue contributed by au additional population. No new principle , is involved in this proposal. Already, ; under the Public Works Act, and under the resumption of Land for Mining Par* poses Act, we have determined that for several public purposes land-may* be resumed by the State, and no more im> i' portant or desirable purpose* can be I imagined nbaii.the proper; settlement on ?' the land by a numerous population, but to carry oat this process would mean raising & • considerable _ loan for this special purpose,--' for if the land were sold by. th>,"Government'on deferred payments, 'or Icased^as Would probably be the case—in order to insure vapid settlement there; for some time the Colony! would have to jay out a large sum. This An* back brings us 10. considering the alternative which has been'suggested, viz., >hat of having the land re-valued after the railway is made, and charging it , with' a share—say, one«half—of the in- ' erenaeut of value; the landowner to lie at liberty to redeem his charge when he i m;iy please, and in the meantime pay interest upon it at the rate of 5 per cent, per annum. This would, no doubt, give the State' a good return for the cost of the railways, brit it would not secure the settlement of the land.with the same certainty m the former method,.lt has, however, the advantage of requiring no money to carry it oui. The Government has determined to submit a; bill" empowering lit to adopt both plans, with the* intention of generally acting on the second, and at the tame time proposing to confipe,the operation of the first pl'nn to situations favourable to settlement, whilst using it so as not to deprive cnyone or' bis residence or of the land attached to it, the extent not exceed" ing an acreage to be determined by the Legislature,—the act of fofclfclpjion in each case not to be deemed to be finally completed until after the particulars are laid before Parliament, and SB appropriation granted for the amount of the compensation to be paid. With either plan gain to the community is great, and no injustice is done to the individual. The Government has also,considered the question whether rates shall be levied upon land in districts through which State railways run, to make up any deficiency between the earning of those railways and the interest paid by, the State upon the money nsed in their construction. The very idea of a system of State railways in a new country must imply, 1 tbjnk, the construction ;of many lines which would not pty for some years much more than their working expenses. Parliament has been striving for years to settle the unoccupied and sparsely peopled districts cf the colony with a thriving population, and yet it' is upon the .pioneers in such districts, when straggling to get a foothold, that this proposal (if given /effect to) would impose special taxation; and for. what, purpose?' To provide the mean* for .doing that which should be'done at the expense of the community as a; whole. Since 1880 the Got eminent handmade eoncMsions in freight,and agrioiltural produce amounting r O over £100,000 per.annum; the joitifieation ii that thereby the ana of , cultivation \W extended for tbe benefit of tbe colony as a: whole,. slu» ' contrary system of fapbtiog special disabilities upon aettlprs,wholooatiadMtepiselveiiaar a railway which did Sot pay 6 par cent, upon its contajjfetton, could not but have a retarding effect upon our progress, I Sneh, .then, are the-intentions of the 1 Government which it is my privilege to annouoce.to-night. They.are only farther steps id a policy consistently adhered to. We have inaugurated tb© system of perpetual leases of' State lands; we have ..-, announc>d;our intention of introducing ■>"' bill for tbe abolition of all restrictions Upon the ; alienation of<- larid;«rthe farreaching effects of which, in bringing to puss tbe sub-division ofiand, it is difficult to, adequately appreciate; and in now submitting to the judgment of honorable members proposals to give to the]country a right to share in the wealth immediately created by . public expenditure, and to unable it to resume upon fair terms land required for settlement, I trust they will recognif* that these proposals have for their- aim, .not only the pranotion of tibe general 'advantage, byan act of Justice to the community, but also theesteUishment of a unmerou&.body of independent settlers. " '

After the delivery of the PnblidJjffiwfrg Statement, .Mr. Seddou- rOondenipßjgj the proposed appdintinent of a MfaiMttr of Railways. : He thought a Minister of Mines much more necessary, jle condemned the proposal re the ]§ast and West Coast Railways, and thought neither proposals regarding landimproved in value by" new lines would trer be adopted- or enforced. . . ./ ■ - , Sir Gk Grey said scorn could not find a word to express his opinion of the State-ment-that they were now to gin the public a right whush tlve.people had for years been robbed oMthat of sharing in the profit of Pfcblic expendilSre. . Those who had robbed the pabUc of tfcf laad were to be left in pogsesrion of'their ■poil. or if depoMe«ged were to be'fiveii 25 percent, beyond itsvalqe. Here* was there sneh an onjmtpropoifj. Adiiiolut«on should be yuwfrpjm before a%ch a ■eheme was agreed to. He called on all to a«d him in inaiitimi in^an appeal to the country.—The motion for adjournment was lost, aud the Hon ß e went intotCommittee on the Tenants Fixtures Bill; which ;w« ; reported with further amendaantf.— A. S^ 86 thl n wonfc "»*<> Committee on the Pngons. Bill.^On Mr Shepherd's motion, the pnnighment of the dark cell was struck out, ag wag also the pawer t« inflict enmulative punishments for minor offences, on the motion of Mr Seddon, by a division of 36 to 36 voteg.

Latbb.—Thif day. The PnsoQg Bill pugged through Committee with amendments, amongtf which were the striking oat of the dark- cell as a punishment, also tbe power of visiting Justices to inflict sentences of flagging.

and the oxciaion of not attending dmi^ service from the list of minor prnsoi. offences* The Bill vras reported as amen ded. The Public Works estimates wen received by message from the Governor, and the House rose at 12.45-