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Contractor who secured the Contract is notoriously a dilatory man, the reason for accepting his tender being that all the other tenders were far in excess of the estimated cost. The rainfall for the 1902 season was:-

June 28.73 inches July 15.44 August 18.28 28.50

so that circumstances were adverse and much sickness prevailed. The number of men at work in September, which was a very dry month, was 400.

I have only referred to these two works as most of our large works are in or about the City of Victoria, where sickness is not so prevalent as a rule as in the outlying districts.

(b). Poor Quality of Labour. There are doubtless better and more rapid workers than the local Chinese, but, taking into consideration the climatic condition under which they work during a considerable portion of the year, it is doubtful whether any imported labour would do better. The fact remains that works of great magnitude and of excellent quality have been carried out by local labour in the best manner.

(c). Exorbitant prices charged by Local Contractors. This is an indefinite statement. About 3 or 4 years ago, when there was a super-abundance of work going on in the Colony, it was difficult to obtain reasonable tenders, but that period is past and Contractors are glad to have an opportunity of tendering for work now. Prices are again at a reasonable level and no difficulty has recently been experienced in letting contracts for works under the charge of the Public Works Department to reliable Contractors.

So far as I am in a position to judge, the C.B.E. does not appear to have taken proper steps to obtain tenders from good local Contractors. They are accustomed to be provided with proper plans, specifications and quantities on which to base their tenders and they are also accustomed to undertake extensive works such as might be included in the construction of several miles of the new

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