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9.
I venture to urge very strongly the
reconsideration of Your Lordship's view regarding the
A
financing of the construction of a new Gaol.
I
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 rigid
rule, and I think that there is justification for
permitting this work to be paid for out of loan.
is a work of the greatest urgency: the conditions in
the present gaol are very bad indeed, and the
impossibility of properly segregating certain types of
prisoners has led to a great deal of trouble during
the past few months. The work therefore should be
taken in hand at once, and not await the imposition of
further taxation to meet 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 building 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 estimated that the gaol
will cost $2 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 $1,875,000 a year, a burden which I consider too heavy
for
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