2.

148

Budget will balance.

On this assumption there would be

available for further expenditure during the year $1,034,259.

The Supplementary Estimates now submitted amount to $631,658,

which allows a fairly wide margin for any eventualities.

3.

There are many urgent works to be carried out in

the Colony, the deferment of which was considered unavoidable

until such time as the financial position was sufficiently

strong to justify their being proceeded with. I am satisfied

that the position to-day is so strong that further deferment

would not be justified and I am anxious to proceed with such

essential services as can be put in hand at once.

4.

Particulars of the various items are given in the

remarks column of the Supplementary Estimates. The item

'Senior Officers Quarters, May Road' is for two adjacent

blocks of flats, consisting in all of 5-five, 10-four, and

5-three roomed flats, making 20 in all, at a total estimated

cost of $520,000, exclusive of $40,000 for furniture. It is

intended to expend this year only $50,000 on site preparation.

It is anticipated that from these twenty flats Government will

receive in rent about $42,000 per annum, which represents a

return on the capital sum of $520,000 of 8%, which after the

third year would be reduced to 6% or 5% as a result of the

cost of maintenance and repairs. But apart from this aspect

of the question there is the fact that Nos.1 and 2 Queen's

Gardens, one of the five blocks of Government Quarters compris-

ing Queen's Gardens, are so dilapidated that the occupants

have been given notice to quit in order that the building may

be demolished. It cannot be long before the rest of queen's

Gardens will have to go the same way, thus accentuating still

further the already existing serious shortage of senior

officers' quarters.

5.

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