- 3
-
there would still be a cushion of $15 billion to meet the
inflation in expenditure and
(adverse) difference
between
inflation in earnings on our fiscal reserves. The figure
of
$15 billion is 28% of the Government's share of the cost
of the ACP.
This means that costs will have to rise by at
least 37% above current price levels before we exhaust the
cushion. This is a highly unlikely eventuality, given
(a)
our insistence on for fixed price contracts
where appropriate;
(b)
an adequate supply of labour for the ACP;
(c)
the proven efficacy of existing expenditure
control/tendering procedures.
What will the SAR Government inherit?
3.
Even assuming we exhaust
the cushion, the SAR
Government will inherit in 1997
Set aside
SAR Land Fund
(All figures in $ billion
at 1997 prices)
25.0
88.0
113.0