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now be added the construction of aerodromes and emergency landing-grounds for aeroplanes. The following gives this year's proposed expenditure under each heading : — (1) Construction and improvement to lines of communication £ (railways, highways, roads, harbours, and aerodromes) 2,730,000 (2) Land-development, including settlement of unemployed workers . . . . . . . . . . . - 819,500 (3) Development of electric power .. .. .. 621,500 (4) Erection of public buildings . . .. . . . . 561,000 As already announced by the Right Hon. the Minister of Finance, the amount of revenue to be made available for highways purposes during the current year will be augmented by virtue of the fact that it is not proposed to retain any portion of such revenues in the Consolidated Fund for general purposes. This will mean that less loan-money will be absorbed for highways construction. With additional funds it is hoped that it will be possible this year for the Main Highways Board to prosecute many works which necessarily had to be deferred during the recent years of financial stringency. On the recommendation of the Public Accounts Committee of this House, the Government decided that the construction of the tourist road to Milford Sound should be a charge against the Main Highways Construction Fund instead of against the " Roads " vote of the Public Works Fund. The recommendation arose from the fact that practically all the revenue receivable as a result of the road construction will be from increased consumption of motor-spirits by motor traffic using the road. Under these circumstances, the Government adopted the Committee's suggestion and the road was added to the highway system on the 21st May, 1935, from which date construction costs have been met from highways funds with consequent relief of the Public Works Fund as regards loan charges and of the Consolidated Fund for interest and sinking fund. Extension of hydro-electric power made a considerable advancement last year with the completion of the Waitaki Power-station, and this year will see continued progress in this direction with the construction of additions to the Arapuni Powerstation. The erection of public buildings is now receiving a good deal of attention, and I am anxious that careful consideration be given to suitable proposals in this direction. It was quite obvious that not only' was considerable congestion taking place in the present public buildings in Wellington and Auckland, but that the Government was losing money by the necessity for renting private buildings for public purposes. It has therefore been decided to erect new public buildings in these two cities, and plans are now being prepared for suitable buildings, both of which will be of considerable magnitude. The policy of the construction of a chain of emergency landing-grounds for aeroplanes still continues to receive the attention of the Government, and, as indicated in more detail in a later part of this Statement, considerable progress is now being made in this connection. The question of up-to-date ground organization in view of the licensing of commercial air services now becomes a matter of great importance, and emergency landing-grounds form a vital part of such an organization. I am pleased to say that, with the assistance of unemployment-tax funds, finance for these purposes is now being made available. Considerable activity is now taking place in land improvement and development, and the Department's work in this direction is shown in my Statement under the headings of Irrigation, Land-improvement, and Settlement of Unemployed Workers. The total net expenditure under all votes proposed this year in the public-works estimates is £5,200,000 (which includes £1,310,000 from Main Highways Revenue Fund and £450,000 from Main Highways Construction Fund), as against an appropriation last year of £4,731,654, which included £1,120,000 from Main Highways Revenue Fund and £510,000 from Main Highways Construction Fund. I would like to take this opportunity of placing on record the extreme readiness and willingness with which my officers have met the demands of a considerably increased programme of public works within the last few months.

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