PUBLIC WORKS STATEMENT.

Waikato Times, Volume XV, Issue 1266, 10 August 1880, Page 2

PUBLIC WORKS STATEMENT.

Thk following is a portion of the Public Works Statement having- reference to the North Island, which was delivered by Mr Oliver, Minister of Public Works, in the House of Representatives, on Friday night : — Following the usual course I propose to begin by briefly reporting the operations of the Public Works Department for the seven months which have elapsed since I had a like honor, last December. I shall condense this part of my statement as much as possible, as I do not wish to weary the House with a multiplicity of details, and because it will, when printed, be accompanied with full reports from various heads of departments, by copious tables, and by maps, which I hope hon. memders will find useful as exhibiting the progress we have made in the construction of railways already authorised.

KAIPARA-WAIKATO RAILWAY. The wharf at Helensville. on the Kai-para-Waikato railway, has been finished satisfactorily, and the station buildings are nearly completed, The line between Newmarket junction and Waikomiti has been finished and opened for traffic. The gap, however, between Helensville and Auckland, caused by the nonconfcdetion of the Waitakerci contract, still remains, and the condition of the work gives no promise that it will be finished in the contract time, which ends iq September next. The work-shop contract at Newmarket is being pushed energetically. The contractor for the reclamation in Auckland having failed to cany out his contract, it was taken out of his hands, and a portion of it has been re-let to another contractor. The Ohaup.) contract has been finished, and the Waikato railway is open as far south as Te Awaiautu, about two and a-half-miles from the confiscated boundary.

WAIKATO-THAMES RAJLWAf. The GiulwHteluwu tQutruot of the \Yai,

kato-Thames railway is completed, and the Shortland contract nearly. The Waikato contract, extending twelve and three-quarter miles east from Hamilton, is • progressing favorably. A survey of this line has been completed from Hamilton to Te Aroha, and up the Thames Valley for thirteen miles from Grahamstown, leaving about nineteen miles fctill unafcrveyed. Mr Oliver then stated the position of the following lines: — Foxton-New Plymouth, Wellington- Woodville, NapierWoodville.

THE UNEMPLOYED. The great depression from which nearly all our industries have suffered lately, has thrown may workmen out of employment, and the Government have been called on to alleviate the consequent distress by finding work for them on the railways nnd roads which are in course of construction. We have thought it our duty to comply with these requests, and I am sorry to say thai no less than 1674 o* these men are now being employed at low wages in Various parts of the colony. Although it is to be deplored that in a new country of such great natural resources as New Zealand this state of things 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 labor in the ordinary industries of the country, and at the highest rates of wages known in any part of the world. The disorganisation of the labor 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 a revival of the 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 us are engaged in work to which they are unaccustomed, yet from their labor the colony has obtained a fair equivalent for the outlay.

ICUI C^IU V UXbU V AVI, vuu uuviwj • * GENERAL PROGRESS IN EAILWAY CONSTRUCTION. The sums voted by Parliament for additional railway works in the last session, exclusive of preliminary surveys, for lines not authorised, amounted to £2,308,700 on 31st Marcn, £856,550 of this sum had been expended, 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 3 years, and believing that, as some of the railway works had been adopted iv times of great prosperity, Parliament would not disapprove in. our changed circumstances of having an opportunity afforded of reconsidering them. I have not been in haste to press on the construction of new works ; in fact, iv the Middle Island only one new section of railway has been commenced since the end of last session.

_ ROADS. The expenditure of the yotes for roads in this island, lias for the most part been entrusted to various local governing bodies. The main roads , under the charge of the Government have been maintained as usual during the year. These include the Great South Road, Auckland j Tauranga, and the Taupo-Napier 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 Stoney River crossing Waimate Plains have been carried on satisfactorily, and the two sections of road will probably meet in a few days. The character of the country is very favourable, no natural obstacles having been met. The cross road from Stratford to Opunake through the bush is also being pushed on. The amount expended on roads and bridges in the South Island during the past year is small and no new works of importance have been undertaken.

SNAGGING THE THAMES RIVER. Although not such a public work as is usually referred to in a statement of this kind, I cannot refrain from mentioning the self-reliant and public spirited efforts made by Mr. Firth, of Matamata, to remove the snags from the River Thames, at his own cost. In these days, when colonists are too much in the habit of looking to the Government for almost every tiling, it is refreshing to see public work so useful to the community begun and carried on and finished by a private person, without even an application having been made to the Government for aid from the funds of the colony.

THE COAL INDUSTRY. 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. Our most important lines of steamers are now almost supplied from the coal mines of the colony, and the more extended use of native coals will effect a saving of £8500 on railways in the Middle Island for the current year, in addition to an almost equal amount heretofore saved on those in the North Island.

WORKING RAILWAYS. During the recess the management of Working Railways has been the subject of inquiry by the Royal Commission appointed by the Governor to report on the Civil Service of the Colony, and also to some extent by the Royal Commissioners on railways. The reports of these gentlemen are calculated to be of great service, and point out many defects in organization and practise, some of which have already been removed or are in course of removal, and the whole question of the management of railways is under consideration in connection with the reports of the Commissioners. The efforts of the Department were directed to greater economy in the system of railway management by working with a smaller staff of officers and men, and by reducing the number of trains and the speed at which they were run. A considerable saving 1 has been accomplished, while the convenience of the public has not been materially curtailed. The train service has been reduced by 37,000 miles a year, the staff has been reduced by 266 men, and it is estimated that these and other economies which have up to this time been effected will save in one year upwards of £44,000. Serious and constant attention is still being given to economised charms, and I am satisfied that the workingexpenses will be much further reduced. As these alterations which I have referred to can hardly be said to have commenced until after prorogation of Parliament, they had but a small portion of the last financial period wherein to operate, and I am sorry to say for the nine months endin> the 31st March the railways only gave us a return equal to slightly under 2\ per cent. per annum, while the rate of interest we have to pay is over 5 per cent. The loss on the cost ef lines which stands at £8,629,402 was at the rate of L 237.730 per annum, and had to be furnished from taxation. In the prosperous years through whjohwehave just pa^ed we dkl not Beriou>ly regard the railway deficit, but tfwugbt owly of the immense advances

of railways in settling and developing 1 the resource? of the country. We pointed to these advantages as justifying 1 expenditure, and spoke of our railways as remunerative undertakings', whether they contributed interest on their coat or not. Now, if the colonists were a large jointstock company, with equal shares and an entire oonimunity of interests, this view might be correct ; but the benefits of railways are very unequally distributed, many districts being quito unprovided adth them, while all have to contribute to the taxation from which the loss is made up. This charge on tho colonial revenue is great, so that it is a serious element in tho expenditure of the colony, and it becomes questionable whether a desirable outlay in some of the departments of the Government can be continued if our railways be nob made luore selfsupportiug. The failure to obtain a greater direct return from our railways, such as is looked for in ordinary commercial ente prises, is no doubt mainly attributable to the sinallness of our population. We are still a small community, and are scattered over a wide extent of country. Our people are so few that they fail to furnish traffic enough, either passengers or goods, to make the lines pay at the ordinary rates hitherto current. We have already many more miles of railway in preparation than either England, France, America, Canada, or any of the Australian colonies. In Great Britain there is one mile of railway to about 2000 inhabitants, while in New Zt aland there is one mile to 406. For every mile in Victoria thei-e are 108 per cent, more customers than we have ; in the United k tates they have 43 per cent ; in Canada, 53 per cent ; in New South Wales 148 per cent ; in Great Britain, 383 per cent ; and in France, 614 per cent, more people per mile than in New Zealand, if this contrast with other countries were confined to the South Island, which contains by far the largest portion of onr railways, it would show the disproportion still more forcibly ; for, instead of having 4o6 people per mile— which is the average for the colony — the South Island has only 330 people per mile. Our average receipts, per mile of railway last year, were L 648. while in England they amount to L 3485 j yet, even with these comparatively large receipts, the railway dividends declared in England, only average U per cent, per annum. Next in importance in my opinion, among the reasons for the want of commercial success in railways working, is the needlessly low tariff adopted in many distriats. Between two places to which my attention has been called, where, before the ' railway was made, the freight charged was L 3 per ton, our railway rate is 16s lOd. Another instance, the former rate was L 6, and is now 17s 2d ; in another it has been reduced from L 5 to 22s 2d. No doubt at the commencement of a railway system in a new country it is easy to make mistakes, and by no means easy to make railways pay with only 406 persons to every mile. Although our chief end in railway construction is by facilitating travelling, cheapening the transit of goods to open the country and develope its resources, we now discover that we have gone too far, and find ourselves face to face with a state of things as unpleasant as it was unexpected. I hope that I shall not be misunderstood as advecating an illiberality in the management of our railways. The best policy is_ to reach the multitude. I adopt the opinion expressed by Mr Gladstone when, discussing the best means of making the Metropolitan District Eailway pay, he said that "asa rule, the State, or individual, or company thrives the best which dives deepest down into the mass of community and adapts its arrangements to the wants of the greatest number." But our population is, as I have already said, so small and so sparsely nettled that rules of this kind just quoted have amongst us only a limited application The tonnage cariied on our lines compare very favorably with the neighboring colonies. Our principal railways are on the East Coast, and we are restricted in our tariffs by the competition of water carriage. On the inland railways, too, the tariffs are at present more'strictly limited than they wou'd usually be, because of the cheapness of horse food and the competition of ordinaiy road vehicles. Even if this were not so, I should, not in any case advocate excessively high rates. It will take time to develope the true system of tariffs adapted to our circumstances. Our efforts mu&t neces arily be carefully made and constantly watched. Railway Tates that are only deigned to brin^r 5 per cent, on the cost surely cannot be considered high. I believe we shall ultimately attain a good result. We have covered the country, with these stimulating agencies. The extent of population and industries will increase, and then our railways will become, if we desire it, aids to our revenue ins cad of sources of temporary embarrassment.

SHOULD WE SELL OUR RAILWAYS ? At present, however, there is a feeling of great disappoinment at the result exhibited, by their yearly balance-sheet, and amongst other remedies it has been proposed to sell the railways. No doubt if we could find a purchaser for them at cost price they should seem to present an easy solution of the difficulty. It is a suggestion that might have been expected, and at least the merit of exceeding simplicity. I fear t e proposed solution will not help us much. It is clear that no company would buy out the lines, except at a price calculated to yield at least the current rate of iaterest which, at least at present, may be stated at from 7 to 10 per cent. These are rates given for money advanced on freehold security, subject to little risk, and requiring from the owner scarcely any personal attention while railway investments are exposed to daugers of various kinds, such as floods, heavy payments for accidental injuries, depression of trade and so on. If, therefore, we seek to sell our railways, which are now paying only 2^ per cent, interest, we shall have to accept for them a sum representing only a portion of their cost. Probably we should have to face a lo^s of millions of money, and certainly we should still be liable for the payment of the whole of the interest as at present, while we 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 of the colony. Were we to Rell the railways to a private firm what would that firm do to insure profit ? It may be auswered in gen* ral terms that it would manage better. I admit the management is capable of improvement. I concede that the Government will probably never be able to manage as a private firm might, but no private firm is likely to engage in such a gigantic undertaking, and gross mismanagement by large companies is a state of things which we are not entirely unacquainted with. Of course the railway company would try to charge higher rates for carriage ; but why cannot we ourselves do that ? Why should we submit to £1 heavy loss of capital to begin with and then to the payment of extra 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 not always be wielded in the interests of tho people. I feel quite sure that it will never be necessary to accept this alternative, for I beliovo'that careful a.ud ii}tt>Uigci)t management, and the

natural growth of traffic, will yet make our railways commercially succesful.

THE PROGRAMME OP CONSTRUCTION. For the present, however, even the restricted programme recommended by the Commissioners is far beyond our means. The estimated cost beyond the present liabilities of completing the hne9 of railway authorised by Parliament is £6,606,200. That being the case, it becomes sufficiently apparent that we must greatly modify our scheme of railway construction, pobtponing some important parts of it until population and settlement have largely increased, and until the railways already constructed have become more nearly self-supporting. We have not the funds necessary to complete at present, nor will' the ordinary revenue bear the increased demand which every additional mile of railway makes on it for yearly loss in working. We have no alternative, therefore, bat to confine our operations to the extension of some of the incomplete lines to such nearest points as will bring them into use, and aa far as possible make the expenditure already incurred to some extent reproductive. Of the amount voted last year for publio works, no less a sum than £2,356,729 was for actual liabilities which we found in exiscence, and further expenditure, to a considerable amount was made necessary by the*>e liabilities. Realising the position of the Public Worjjs Fund, we have endeavored to minimise the expenditure, and te spread it over as large a space of time as possible. We have stopped- many new works, even after contracts had been prepared by the department, and tenders received. ,In his Financial Statement, the Colonial Treasurer showed that the total ways and means, on the 31st March last, was £3,261,410, and that the liabilities of the Public Works Fund, on the same date amounted to £1,122,860, on 31st March, 1880, clear of liabilities. Since that time, ihe liabilities have increased, and we have now £821,923, as the available balance on the 31st July. The new works and services, the estimates of which I am about to submit, make a further demand on this balance of £574,238, leaving £247685 only for fur ther appropriation from the Public Works funds. Bearing in mind the importance of spreading the expenditure of the balance of the loan over tha next two years, we should have preferred to ask for the appropriation of a- much smaller sura, but we have not found it .possible to do so. The votes for various works which we now propose are designed to provide for expenditure up to the 30th June, 1881. After that date, and until we are again in a position to become^borrowers the only eom'ces whence we can draw supplies for these purposes will be a portion of the proceeds of land sales, and the saving trom estimates for the purchase of native land, a saving which we have reason to believe may be considerable, but which at present, it is impossible to estimate.

WORKS PROPOSED. The question of the propriety of construci«.g the Waikato-Thames Railway has been raised by the Railway CommissionerH, who have recommended it should at present be completed only to the junction with the proposed Cambridge line, and that the Cambridge section of eleven miles should be substituted. Government intend to have the subject very carefully investigated, with a view to determine which proposal will be most beneficial to the country, and will act accordingly. The vote will therefore be proposed in the alternative. [Mr Oliver then stated in detail the works to be gone on with in other places.] In conclusion I would say, that although Government have found it to be theu imperative duty to stay the speed at which public works have, until lately, been carried out, we believe the time is not far distant when the works now temporarily suspended may be resumed, aud those now proposed to be curtailed completed. The resources of New Zealand are so great, that for her there can be neither retiogression nor standing still. But it is incumbent on us to recognise that for a state, as for an individual, steady progress and an assured prosperity can only be maintained by obedience to the dictates of prudence. I have now to express my gratitude for the patient attention with which this House has honored me.