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company could be expected to tender unless the enterprise
was expected to pay and beyond the admitted possibilities
of tenders, there has been a definite application from the
existing Yaumati Company to continue for a long contract,
even carrying what it seems to consider to be the extra
burden of the Vehicular Ferry. That Company now pays
Government some $264,000 per annum
on a lease never longer
T
than three years, and now annual only providing its own
boats and all running expenses, piers only being provided
by Government, and as has been already shewn is inan
exceedingly prosperous condition.
8.
The new Vehicular Ferry Scheme is calculated to
require $2,000,000 capital, inclusive of the construction
of Piers and boats: piers being by far the heaviest item.
Little better than a guess is as yet possible, but granting
that optimism is justified and putting more traffic against
the expense of larger boats, allowing some loss on Vehicular
Traffic ( which should be no more than an initial loss)
and making further allowances for the extra cost of direct
Government running ( against which can be put at least the
shareholders dividends), it is justifiable to expect a return
on a Government investment of the whole sum ( including
piers) of something approaching $200,000 a year. A
reinvestment of the great part of this return in cheapening
fares should show a further return in development as stated
above of a nature which a Government would appreciate but
which would interest a private company very little. The
Government could anticipate development: the Company would
follow it. The probable return of the whole initial
expenditure in some ten years seems to provide justification
even for Government taking the risks (if any exist) of the
whole investment, so that it may keep an eye on the very
great possible consequential advantages to the Colony as a
whole.
9.
No comments yet.
Private notes are available after approval.