8.—6.

question the potential value of tliis development, and it is expected that by reducing the loan outlay to payable limits, and financing the balance of the construction cost from annual taxation including unemployment funds, future earnings will cover loan charges. Last, but by no means least in the narration of public works activities, is the i development of hydro-electricity. The capital outlay to the 31st March last amounts to about £13,000,000. but is now tapering off following the completion of the major schemes. The revenue last year was approximately £941,000. It is pleasing to record that after paying all expenses, including interest and depreciation, a small net profit was realized. This is a better result than was anticipated and it will enable the undertaking as a whole to reduce the accumulated losses from past years and pay some arrears of sinking fund. Although debt redemption has in the past had to' be postponed, any loan expenditure on these works in the future may be regarded as wholly reproductive from the outset. The programme of public works for the current financial year is embodied in the estimates to be tabled to-night. A perusal of the votes will show that £530,000 is to be provided toward the completion of Wellington railway terminal facilities — the Tawa Flat Deviation combined with the new station and yards and electrification of the line to Paekakariki. By the end of the financial year these works should be well on towards completion. * Goods trains with steam engines are already using the deviation. The most prominent feature in the programme is Public Buildings for which £561,000 is set down on the estimates. In addition to provision for a few large buildings such as Dunedin Post-office and the new departmental offices at Wellington and Auckland, and a further contribution of £30,000 for the National Art Gallery at Wellington, there is £180,000 for school-buildings and £90,000 for additional accommodation in mental hospitals. These buildings are all necessary, costs are down to a low level, capital is relatively cheap, and the Unemployment Board is anxious to stimulate building owing to its far-reaching effect on the employment of labour. Thus the time is opportune to undertake building projects, some of which have been held over for some years. In the aggregate £595,000 is to be provided for roads and bridges, but as road works are being carried out to some extent to relieve unemployment, £150,000 of the estimated expenditure will be financed out of the Unemployment Fund. In addition, the estimates provide for the expenditure of £1,150,000 on maintenance and improvement of highways and £520,000 on construction work. Under hydro-electric supply £402,000 additional capital will be required this year for extensions at Arapuni and further developments at Waikaremoana and other stations. Other items in the programme are £300,000 for telephone and telegraph improvements and extensions and, including £120,000 to be recouped from the Unemployment Fund, a total of £330,000 for the irrigation, lands-improvement, and swampdrainage works previously mentioned. The complete capital programme provides for a net expenditure out of loanmoneys of £3,750,000 broadly made up as follows Public works .. .. . • •• •• 2,960,000 Small farms .. .. • • • • • • 350,000 Land settlement and development .. .. 150,000 Native-land settlement .. .. .. •• 160,000 Dairy industry loans .. .. •• •• 100,000 Forestry .. .. • • • • • • 30,000 £3,750,000 This amount can be provided from Government Accounts, so no public issue will be necessary for the purpose.

Hydro-eleetrie works.

Public-works programme.

- Summary of loan programme.

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