Communications and transit > Enquiry on national public works

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subsequent to their construction. The funds for developmental road construction are
provided by an annual transfer of £135,000 from the vehicle and petrol taxes made avail¬
able for country roads. Of this sum, approximately £35,000 per annum is required for
the payment of interest, exchange and sinking-fund charges on loans spent in the past
on construction works, so that there thus remains roughly £100,000 per annum for expen¬
diture on new works.
Immediately following the passage of the Main Roads Act in 1924, it was necessary
to borrow substantially, in order that a rapid improvement of the main-roads system
could be made. This policy of borrowing continued for about four years, but, as the
worst of the roads were placed in order, the amount of loans was reduced until, at present,
it is not the practice to spend any loan money on either main or developmental roads!
The Department, however, is responsible for the payment pf interest and other loan
charges on all loan money borrowed in the past. In this way the general budget of the
State is relieved of charges for roads and, in effect, the motorist, who benefits most by
road maintenance and construction, is required to meet the annual loan charges. It
should not be concluded, however, that there are not any road works still requiring to be
undertaken which would warrant borrowing; the position is that the funds available to
the Department are so encumbered by obligations for maintenance and payment of
interest on past loans that it would be imprudent to charge the funds further by increased
borrowing. As additional revenues become available, however, it is probable that
additional loans will be raised for main and developmental road improvement.
Aw, Estimate, as fay as is possible, of the Allocation of Expendituye on the Execution
of the Public Works referred to in I, as between Materials and Equipment provided by National
or Foreign Industries, on the One Hand, and Labour—that is to say, Wages and Miscellaneous
Social Expenditure—on the Other.
It is found from experience that approximately 50% of the expenditure on road
works is required for the payment of wages of employees engaged on the works. The
remaining 50% is expended in the purchase of materials, the haulage of materials, the
use of plant, and miscellaneous charges, such as insurance of employees, provision of
tools, etc. It is to be noted, however, that practically the whole of the materials, tools,
plant, etc., used on roads are produced locally and so, eventually, the money spent on
roads is used in payment for local labour, either in the actual maintenance or construction
of roads themselves or in the production of materials required therefor. It would not
^5" say that 95 % tho money paid out by the Department is eventually
absorbed in the payment of wages or other charges for local industries.
V. The Government’S' Opinion with regard to the Effects obtained or expected from the
Execution of the Public Works referred to in I on the Resumption of Economic and Industrial
Activities and on Unemployment.
As mentioned above, approximately 95 % of the expenditure on roads is used in the
employment of local labour or other items in local industries. The road work is therefore
ideal m creating a chain of industry, as each job undertaken on the road involves activity
m several other subsidiary industries. Apart from this aspect, however, there is gradually
emg set up a regular road-making industry with employees specialising in the various
types of road work. The Department has found that men unfamiliar with road work
have, after several years of experience, become as valuable as skilled tradesmen in other
^ For example^ plant operators on road, works and men engaged on concrete
an ot er works are required to be as skilful at their work as, say, motor mechanics in
another section of the road transport group.
It has been proved that the construction of good roads saves the expenditure of