1) (
481
I propose to reserve a certain number of sites for Govern- -ment quarters, and it is probable that the War Department may apply for sites. It might then be possible to arrange for an exchange of land in this portion of the Hill District with War Department land in the centre of Victoria.
6.
I advocate the construction of this
tramway by the Government because it is improbable that
private enterprise would embark on an undertaking which can
hardly pay working expenses, and will certainly yield no
profit for some years. The Government must have regard to
the public interest generally, and by means of this work will achieve the indirect benefit of providing for the adequate
housing of Government servants, as well as a portion of the
European Commercial Community, and the direct benefit of a
considerable addition to the rates and taxes. It is more than
probable that the construction of this tramway will have the
effect during the next few years of causing the erection of
rateable property of the annual value of at least $60,000
yielding rates of about $10,000. In addition houses belonging
to the Government and possibly the Military Authorities would increase the population using the tramway. I have little
doubt that the undertaking would become a paying one, and
even if it were not so I consider that the Government is fully justified in embarking on the project for the benefit
of the com.unity.
7.
I have put forward these proposals at the present time, in order that Mr. Stubbs may have the opportunity, while in England, to consider them in conjunct- -ion with my other recommendations on the subject of the housing problem. No steps beyond a preliminary survey will be
undertaken