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On the Estimates for 1901, I saw no reason to object to the votes for Public Works, provided only the large programme outlined could be carried out by the existing staff of the Department, without an increase of establishment.

3. I understand from your despatch under acknowledgement that it is not possible for this part of the Public Works programme to be carried out by the Department: and the alternative therefore presents itself of either engaging engineering assistance from home for this scheme, or local assistance from outside the Department.

4. You recommend the latter course for my approval, in preference to the former, mainly on the ground of an anticipated saving of expense, which Mr. Ormsby reckons at about $5,000.

I think this economy should be left out of consideration, as it is very small and may be absorbed by the extra care or judgment required. The saving is only 13 per cent on the estimated cost of the work. Moreover, a degree of supervision must necessarily be exercised over the work, which would hardly be required in the case of an engineer in the Government service; and the cost of this extra supervision must be taken into account.

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