33
Enclosure No. 3.
(2)
- 2 -
"Water rate" in addition to a unit charge for all
consumption; the inclusion of military contribution
and the
in the costs of the water undertaking;
proposed treatment of past capital expenditure.
4.
Modifications were made in the original
scheme with the object of meeting some of the
criticisms put forward. I enclose a copy of a
further Sessional Paper which was laid before Legislative Council on the introduction of the
Waterworks Bill, incorporating the Financial
Secretary's original nemorandum and a statement of
these modifications. The important changes are two.
(a) As pointed out in a semi-official
communication from the Colonial Office the
original scheme included too large a provision
for military contribution chargeable to the
Water Revenue. This has now been excluded
and in consequence it has been found possible
to reduce the suggested standard unit charges for water consumption.
(b) Particular objection has been raised to the
proposal to repay past capital expenditure
made from general revenue at a rate of 2 per cent
per annum and there has been substituted for
this proposal a contribution of equal amount
to a new Renewals Fund which would be
available for future renewals and replacements
of capital equipment, including a certain
amount of betterment. This meets more
satisfactorily the general desire for