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Wednesday, February 27, 1974

CAPITAL EXPENDITURE OVER NEXT 10 YEARS TO BE $25,000 MILLION

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The order of cost of projected capital works over the ten years

ending 1983-84 at 1974 prices will be nearly $25,000 million, the

Financial Secretary, Mr. Philip Haddon-Cave, said today.

In his budget speech, he said there was a difference of some

$7,000 million between this figure and the resources which he assumed

would be available at current tax rates, namely, $18,000 million.

"Fortunately," he said, "in view of the time span involved, it

to consider

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is neither necessary nor would it be realistic to do so now how programmes might be cut back and/or additional resources raised."

The order of cost figure of $25,000 million, he said, might

prove to be on the high side for various reasons.

"Equally, it may

also prove to be on the low side, for other unavoidable projects are

bound to come forward."

It was also difficult to be definitive about the availability

of additional resources over such a time span, the Financial Secretary added.

So, for the moment, Mr. Haddon-Cave said, he did not propose to

worry unduly about the position over the ten years as such but the

difference of $7,000 million between the order of cost and assumed resources

"must not grow any larger."

But he said we must consider that part of the difference that falls within the forecast over the three years ending 1977-78, namely

some $4,000 million.

/Only $2,040

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