CO129-348 - Governor Sir Lugard - 1908 [7-10] — Page 50

D

Enclosure

Public Health and Buildings Ordinance, 1903.

-

49

C.O.

29049

Improvement Scheme.

Section 44 (new numbering)

Hon. Colonial Secretary,

Tas 10 AUG 08

The following is a statement of the probable

cost of carrying out the Improvement Scheme referred to in the

foregoing section. I have selected a block of 4-storied houses in Queen's Road Central to base my statement upon.

The present rentals of the three upper

floors of the houses in question vary from about $75 to $90 per

month, or say, $82 per month - $984 per annum.

Under the present Ordinance, the three upper

floors of each house will accommodate 28 persons: under the

proposed amending Ordinance, they will accommodate 48 persons,

assuming the maximum possible number to be housed in them. This

gives an increase of, say, 70 per centum.

Assuming that the actual increase in the

number accommodated is 50% and that the rental derived per head,

which at present amounts to $35, is reduced to $30, the rental,

after, the improvement scheme has been carried out, will be-

-Come:-

(28 plus 14) x $30 - $1,260 per house or an

increase of $276 per house per annum.

The rental lost on the demolition of the

three upper floors of one house will be $984 per annum, against

which there will be a gain of 2 x $276 = $552 on the two re-

-maining houses, or a net loss on the 3 houses of $432 per

annum.

Capitalizing this at 7%:-

$432 x 14

14 -

$6,170

Add estimated cost of alterations... 1,050

$7,220

Loss

or,say, $3,600 for each of the two remaining houses.

The above is based on somewhat unfavourable

data,