B.—4A.

1494. We understand that it is intended that the Department is to be very considerably reduced in size and cost, and, from our investigation into the works which have been carried out during recent years, we have no hesitation in saying that this reduction is long overdue ; in fact, it appears that the financial position of the country to-day is in no small measure the result of extravagant expenditure out of loan-money on schemes which, from a national point of view, have not justified the expenditure which has been incurred on them. 1495. As a preliminary to the analysis of the expenditure and the projects in more detail, we give hereunder a statement showing the accumulated outlay on capital works as at the 31st March, 1914 and 1931, respectively, but would preface this with the remark that all the expenditure shown in the following statement is not controlled by the Public Works Department—e.g., such accounts as the Hauraki Plains Settlement Account, Rangitaiki Land Drainage Account, and Swamp Land Drainage Account are under the control of the Department of Lands and Survey, but the works are nevertheless of a national character, and the relative expenditure should be included if a correct perspective of the cost of national development is to be obtained.

150

Accumulated Expenditure to 31st March, 1914. 1931. Public Works Fund: — £ £ Departmental .. .. •• •• •• 850,745 2,740,866 Rates on Native Lands .. •• •• •< 68,672 68,672 National Development Account Roads, Roads to Outlying Districts, and Roads on Goldfields 10,101,329 20,334,817 Harbour Works and Lighthouses .. •• 1,105,504 1,291,817 Lands: Purchases and Development .. .. 2,186,140 2,722,363 Mining Development .. .. •• •• 893,526 891,900 Social Services .. .. •• •• •• 3,053,827 5,190,714 Immigration .. .. •• •• •• •• 2,288,520 3,309,850 Public Buildings .. .. •• •• •• •• 2,802,998 5,909,181 Timber Supplies and Sawmills .. •• •• •• •• Or. 5,489 Acquisition, &c., of Quarries .. •• •• 9,636 Development of Tourist Resorts .. .. •• •• 259,128 591,308 Contingent Defence .. •• •• •• •• 974,395 1,406,587 Irrigation, &c. .. .. •• ■■ •• 4,356 968,743 Plant, Material, and Stores .. • • • • • • • • 274,633 Railway Construction and Additions to Open Lines .. .. 31,048,631 56,117,712 Telegraph Extension .. .. •• •• 2,669,773 10,930,501 Charges and Expenses of raising Loans .. .. .. 1,252,400 3,713,744 Interest and Sinking Fund .. .. •• •• 218,500 218,500 Motor Transport .. .. ■ • • • • • • • • • 33,635 Development of Water-power .. .. .. 18,451 Total, Public Works Fund 59,796,895 116,719,690 Receipts-in-Aid, Transfers from Revenue, &c. .. .. 11,054,380 15,674,303 Special Funds : — Electric Supply Account .. .. 177,837 10,270,384 Main Highways Account .. •• .. 4,536,977* Hauraki Plains Settlement Account .. .. .. 152,227 942,095 Rangitaiki Land Drainage Account .. .. .. 45,216 499,935 Swamp Land Drainage Account .. .. . ■ .. 538,626 Irrigation and Water-supply Account .. .. 48,291 Wellington and Manawatu Purchase Account .. .. 1,000,000 f Waihou and Ohinemuri Rivers Improvement Account .. 22,956 709,740 Wellington-Hutt Railway .. •• •• •• 331,321 330,032 Railways Improvement Account .. .. .. 636,332 641,275 Railways Improvement Authorization Act 1914 Account .. .. 8,727,918 Loans to Local Bodies Account: Roads to open up Crown 697,408 Lands Opening up Crown Lands for Settlement Account: Roads to 206,626 open up Crown Lands f ' Land for Settlements Account: Roads to open up Crown 590,025 Lands National Endowment Account .. .. •• 24,120 53,401 Education Loans Account .. •• •• •• •• 4,678,965 Total, Special Funds 3,133,698 33,423,407 Grand totals £62,930,593 £150,143,097 * Includes £1,400,000 transferred from revenue funds and £1,226,000 raised through Public Works Fund General Purposes Account. f Included in Railway Construction and Additions to Open Lines above.