upset estimates of cost.
In the last report
by the Consulting Engineers on the second
part of the water works scheme, it is stated
"It is difficult to say what will be the
34
ultimate effect e unit costs
the deprecia-
tion in the value of thedollar, and, although
there has not, so far, been any serious
increase, it seems certain that costs must
rise if there is no appreciable recovery in
its value."
Quite apart from these general objections.
it is clear from consideration of the details,
ti that this ambious loan programme cannot now
would
be sanctioned, although the Governor w be
glad to receive approval "of the whole proposals
contained in the Memoranda" The Water Works
scheme must wait until the Consulting Engineers
are satisfied as to the foundations of the
dam,and
and the steps which the Deputy Treasurer
indicates on page 9 of his Memorandum
ai
necessary to put the Water Works on a satisfac-
tory paying basis should be begun before any
further expenditure is sanctioned.
It was always contemplated that the
would
new gaol shoula be built out of revenue.
The
fact that the financial position has deteriorated
is no justification for building it out of
loan. It should be disallowed as a loan
work and postponed indefinitely until the
financial position improves.
The Aerodrome and Harbour development
schemes are more than half completed and it is
clear