CO885-(11-12) — Page 396

PUBLIC PECORD OFFICE

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Reference:

C.O.882/12

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PUBLIC RECORD OFFICE, LONDON

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ignore the definite recommendation of the Advisory Medical Com- mittee and to stultify the established public health policy. The Colony now possesses a granary which, though constructed at great cost, does afford the security against the spread of plague by rat infection which was the purpose of its construction, and we can see no reason for turning it to an entirely different purpose, or why it should not be brought into working order at the earliest possible date. Although built mainly to serve public health, it can as a rice store yield a reasonable profit to the Government and yet benefit both the consignee and the consumer. A change of policy would mean that a further Rs.150,000 would have to be spent on the alteration of the building and in this connexion we would point out that although part of the capital charge may reasonably be written off if the granary is made to serve a non- commercial object such as that of public health, its use for purely commercial purposes would have to be justified on ordinary prin- ciples of commercial accounting; if it were to be a constituent factor in a harbour development scheme the whole of its capital cost should be taken into account in testing the commercial soundness of such a scheme.

We recommend, therefore, that action should be taken at once to use the granary for the purpose for which it was designed.

We regard the present arrangement for the administrative con- trol of the granary as no more than a temporary expedient. The officer who constructed it should bring it into full working order, but there is no essential link between the granary and the rail- way, and no reason appears why it should not become part of the normal warehouse system of the port under the experienced control of the Customs Department. We recommend that its transfer to that department, which will make not only for unified manage- ment of the Government warehouses but also for the standardiza- tion of rates of pay at the port, should be carried out as soon as possible.

29. We have recommended that the granary should be brought into use immediately, we have accepted the departmental figures showing that a storage rate which will lower existing charges to the consignee will still leave a surplus over current working expenses, and we consider that, having regard to the fact that its cost of construction was partly determined by public health requirements, such an arrangement can be regarded as financially satisfactory. The position is the same in regard to the new quays. The appropriate use of Quay C is required in the interest of public health, and should, therefore, be enforced. Cattle, mainly from Madagascar ports, are landed in inhumane conditions with a special risk of infection as the animals are infested with ticks. The quay will prevent this. It is fitted with an elaborately con- structed dipping tank which has never yet been used, although

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the Department of Agriculture has prepared the necessary regula- tions. The cattle importers object to these restrictions or to paying charges for the use of the quay which they at present avoid by unloading the cattle into the sea and compelling them to walk ashore. Vested interests should not be allowed to obstruct action in the interest of humanity and health, and we recommend that the Government should enforce the regulations of the Department of Agriculture. The cost of this quay has been Rs.240,000, and though a commercial income recouping this capital cost need not be expected it would be reasonable to impose a small charge to cover at least the current costs of maintaining and working the quay.

30. The new Quay D is being used for the landing of Govern- ment cargoes, the principal article being coal for the railways, and oil. The General Manager of Railways has supplied us with figures which show that this quay has been a profitable investment. In 1930-31 it took 44,578 tons at a margin of Rs.68,000 over work- ing costs, while, in addition, the Government, as consignee, saved Rs.47,267 which would otherwise have been paid as extra landing charges to the dock or lighter companies; the General Manager represents this income and saving as being a return of 9.6 per cent. on the capital cost of the quay. Although much of this profit is no more than a book transfer between the Railway and Quay Departments of the Government, nevertheless the quay does materially reduce the handling charges. This must gradually have the effect of attracting more trade to the quay without any great dislocation of the lighterage business, for we are told that the quay cannot handle more than 70,000 tons in the year.

Quay D should remain attached to the Railway Department, as the bulk of the goods handled are for the railway. But instead of forming a separate budget Head its accounts should be entered in a section of the railway Head of the colonial budget. As has been proposed in other similar cases, deductions should be made so as to show only the real revenue and the real expenditure of the quays, instead of inflating both sides of the budget by book transfers between departments, but the costing figures should be shown separately in the annual report.

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31. The reduction of working expenses which we have recom- mended, the opening of the Granary and Quay C for the purposes for which they were constructed, and the gradual increase of private traffic on Quay D should have the effect of providing a net income which should at least be equal to that shown in the budget of 1931-32, and should therefore give a small return on the capital. There is at present an informal arrangement with the dock and lighter companies which restricts private traffic to Quay D; the Government would gain, and have nothing to lose, by the termina- tion of this arrangement; but the issue is a small one, as the