CO129-453 - Acting Governor Claud Severn - 1919 [1-3] — Page 505

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I propose to reserve a certain number of sites for Govern- -ment quarters, and it is probable that the War Department may apply for sites. It might then be possible to arrange for an exchange of land in this portion of the Hill District with War Department land in the centre of Victoria.

6.

I advocate the construction of this

tramway by the Government because it is improbable that

private enterprise would embark on an undertaking which can

hardly pay working expenses, and will certainly yield no

profit for some years. The Government must have regard to

the public interest generally, and by means of this work will achieve the indirect benefit of providing for the adequate

housing of Government servants, as well as a portion of the

European Commercial Community, and the direct benefit of a

considerable addition to the rates and taxes. It is more than

probable that the construction of this tramway will have the

effect during the next few years of causing the erection of

rateable property of the annual value of at least $60,000

yielding rates of about $10,000. In addition houses belonging

to the Government and possibly the Military Authorities would increase the population using the tramway. I have little

doubt that the undertaking would become a paying one, and

even if it were not so I consider that the Government is fully justified in embarking on the project for the benefit

of the com.unity.

7.

I have put forward these proposals at the present time, in order that Mr. Stubbs may have the opportunity, while in England, to consider them in conjunct- -ion with my other recommendations on the subject of the housing problem. No steps beyond a preliminary survey will be

undertaken