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9.
I venture to urge very strongly the
reconsideration of Your Lordship's view regarding the
financing of the construction of a new Geol.
I
The work therefore should be
It
fully appreciate that as a general principle loans should be confined, as far as possible, to works of a reproductive nature, but this has not been a rigad rule, and I think that there is justification for permitting this work to be paid for out of lom. is a work of the greatest urgency: the conditions in the present gaol are very bal indeed, and the impossibility of properly segregatin, certain types of prisoners has led to a great deal of trouble during
the past few months. taken in hand at once, and not avait the imposition of further taxation vo ncet the cost. In the next place,
I submit that it is not unreasonable that the cost of
such an institution should be spread over a longer term
of years.
The life of the new buildin; will probably
be at least sixty years, while the sinking fund on the
loan, from which I submit it should be paid, will effect repayment in 28 years. I would further point
out that, if additional taxation be imposed to cover the cost, it will mean that we shall have to impose taxation amounting to 25. more than the actual cost, owing to the
fact that such additional revenue will be liable to
military contribution. It is extimated that the gaol will cost $4 millions, to be spent at the rate of
$1,500,000 a year. To meet this expenditure by extra taxation would mean the raising of an additional $1,375,000 a year, a burden which I consider too heavy
for