PUBLIC WORKS ECONOMY

Manawatu Standard, Volume LIII, Issue 22, 22 December 1932, Page 6

PUBLIC WORKS ECONOMY

IMPORTANT STAFF REDUCTION;, REORGANISATION PLANS. WELLINGTON, Dec. 2? Details of economies effected and i organisation carried out in tho Pub - Works Department were announced b evening hv the Minister of lu9 Works: 111 Hon. J. G. Coates Tin, Minister stated that considerable reductions in staff' had already be n made, but that further retrenchmo: was necessary. Since April 1, 1931, t:o staff had been reduced by 41 per cent,

Certain internal reorganisations in :l ; .j various branches would enable add:, tional economies to be effected, and ;> total reduction of*staff of 50 per cent, was in sight. “It has been apparent, said Mr Coates, “on account of the" necessaiy reduction in tho funds available for public works purposes, that a heavy curtailment of this department’s activi. ties was unavoidable, and. indeed, that changed conditions had made imperative a general recasting of the whole public works organisation. The money voted by Parliament for public works for tho vear ending March 31. 19.30, was £8,216.717; for 1931, £8,007,779 1 for 1932, £6,405,405; and for tho cur* rent year, ending March 31, 1933, £3.» 639,027. These figures indicate the ox* tent to which reductions had to to made, and, of course, corresponding re* ductions in the personnel of the do* partment were also unavoidable. “Considerable reductions in staff have already been made, but fur tho? retrenchment is necessary'. “In September, 1931, 761 permanent and 881 temporary officers were employ, ed. On November 1, 1932, these numbers had been reduced to 656 perm a. nent and 339 temporary —a reduction of 105 permanent temporary, making a total of 647 officers. . This leaves a total remaining staff in the department of 995, and further retrenchment now in process of arrangement will reduce this number to 973. CUT BY HALF. _“lt will thus bo seen that since April T 1931, the staff has been reduced by 41 per cent. Certain internal reorganisations in the various branches will enable additional economies to be effected, and a total reduction of staff by 50 per cent, is in sight. Much as one dislikes asking officers to retire, espeoi. ally those who have given splendid service to the State —in some cases over lengthy periods—such action at the present time cannot bo avoided. “The position that must, be recognised is that the lesser amount of work consequent on tho restriction of loan money for public work does not warrant their retention. W© must re tr on civ. No other course is open.”

“Tli© saving already made in gross administrative costs is considerable.” Mr Coates continued. “For 1930-81 this- charge was £507,000; for 1932-33 it will be £307,000 —a reduction of £200,000. A comparison with 1919-20 when Public Works administrative expenditure was the lowest for the past twelve years is illuminating.. Then th© department’s staff numbered 732, and the gross expenditure £1,612,000. At that time the department had not taken over the maintenance and operation of the hydro-electric and irrigation schemes, which have since been completed. “Now the staff is 702, excluding 221 engaged on hydro-electric operation and maintenance and 50 on highways, and the estimated expenditure under all votes for this year in £3,461,000, moro than twice what it was in 191920. Furthermore, in 1919-20 the department collected in revenue £51,600, whereas this year the estimated revenue is £830,000. This increase in revenue is largely due t-o the increase in the sale of electric power consequent on the coming into operation of the State’s hydro-electric schemes. This fact alone indicates how conditions under which the department works have changed. LIMIT TO REDUCTIONS.

“It must not, of course, be assumed,*’ added Mr Coates, “that the Public Works Department, deals only with the expenditure of loan money. In 1919-20 the loan money expended was nearly 89 per cent, of the total expenditure, whereas this year the estimate is only 59 per cent., the balance being highway and other revenue moneys. The department’s activities are many and varied, and for this reason it is not possible to reduce bevond a certain point. In reply to an inquiry as to whether it was proposed to adopt, as a general policy for the department, the recommendations of the National Expenditure Adjustment Commission that public works bo undertaken bv means of outside oontmct, Mr Coates stated that if all works were to be carried out by private contract it would be possible to reduce the department’s staff still further, but it was difficult to see where the contract system could bo used on many of the works now in progress. “It will bo remembered.” said Mr Coates, “that in the past several of the department’s larger works have bon let to outside contractors, but the results havo not always been satisfactory, and the department in several cases has had to complete the jobs with its own staff. “Notwithstanding theso experiences, however, it is intended as a general.s policy, with the exception of the pre>* !|] sent partially completed works which. | could not at this stage be handed over to private contractors, that future works bo undertaken by public tender as far as practicable. “The contract system is already used to a considerable extent. The erection of public buildings, construction of bridges, highways, metalling of roads, and much of road formation are let on a contract basis, and some earthwork is done .by co-operative contract, this method being necessary and particularly suitable for unemployed.’’ The question was raised as to whether the department could be still further reduced by the adoption of a policy of decentralisation, enabling more of the department’s work to be undertaken by the local authorities. The Minister replied that a certain amount of work now being carried out by the department could, of course, be liandod over as suggested, but there wins such a multiplicity of local bodies and their respective areas of control so limited that it was difficult to see how economy of administration would result unless amalgamation of many of the smaller counties was first of all arranged, “If larger local bodies could bo established. muoh groater responsibilities could with advantage be handed over to them. “Opportunity was taken,” concluded Mr Contes, “when necessary staff adjustments occasioned by the recent retirement of Mr F. W. Furkert were in hand, to effect a general reorganisation \ of the heud office staff. This mainly affects the senior advisory engineers. Formerly six senior engineers were employed. This number has now been reduced to three, including the Engineer-in-Chief. Certain amalgamations of branch divisions within iho head office have also been brought about, which will result in a general tightening up of control and economy of administration.”