D—3

Apart from the determination of quotas in the manner outlined, there is the problem of fixing overall allocations for each area. Research into this problem indicates that this is best dealt with in a series of steps, as follows: — (a) From the total of all works, an amount is deducted in respect of very large schemes, such as hydro-electric stations, large Government buildings, &c., which serve an area wider than any one district, and which draw labour from a wide field. These schemes must be located where dictated by the geographical features and resources of the country, the location of the capital city, the main ports, &c. They cannot become the subject of a normal allocation among the various districts: (b) The remaining items which comprise the programme are then allocated among the major public-works districts by giving due weight to factors such as population, capital value, national income located or arising in the district, and capacity for development: (c) The next step is to divide the resulting district allocations into the regions which make up the districts. In making this step a number of special factors must be taken into account. Not every part of the district is expanding its population at a uniform rate. Some areas which require development are not yet populated, and require to be " carried " by the district as a whole until they reach a higher degree of productivity. Again, maintenance work, which is high-priority work, must be carried out where the need arises for it; it cannot be " shifted "as between one part of a district and another. The following procedure has therefore been followed in arriving at a tentative system of allocations : (i) Estimated maintenance has been deducted from the district quota: (ii) The balance of the quota has been spread among regions on a population basis. This gives a rough guide, to be departed from only as necessary to meet the special needs of high-priority work, difficult country, undeveloped areas for development, and so on. Under this system, elasticity in dealing with these matters is confined to the public-works district, the more rigidly determined district allocations ensuring that justice is done as between the major areas of the Dominion. The tremendous importance of the aspects which have been discussed in this and the preceding sections to the economy, and development of the Dominion will be realized when it is pointed out that the total cost of all the projects which comprise the raw material from which the programme is built up amounts to several hundreds of millions of pounds. If all this work; is spread over a period of ten or more years it will not require anything in the way of a revolutionary expansion of the labour force as it is now gradually building up. But the dr a wing-up of the estimates and policies which will govern the triple allocation of each year's work—(i) as between Government, local body, and private interests; (ii) as between the various classes of work requiring to be done; and (iii) as between the various areas of the Dominion—is obviously a task of supreme importance and responsibility.

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