CO129-534-6 Loans for public works 24-2-1931 - 11-8-1932 — Page 50

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9.

I venture to urge very strongly the

reconsideration of Your Lordship's view regarding the

A

financing of the construction of a new Gaol.

I

It

fully appreciate that as a general principle loans

should be confined, as far as possible, to works of a

reproductive nature, but this has not been a rigid

rule, and I think that there is justification for

permitting this work to be paid for out of loan.

is a work of the greatest urgency: the conditions in

the present gaol are very bad indeed, and the

impossibility of properly segregating certain types of

prisoners has led to a great deal of trouble during

the past few months. The work therefore should be

taken in hand at once, and not await the imposition of

further taxation to meet the cost. In the next place,

I submit that it is not unreasonable that the cost of

such an institution should be spread over a longer term

of years.

The life of the new building will probably

be at least sixty years, while the sinking fund on the

loan, from which I submit it should be paid, will effect repayment in 28 years. I would further point

out that, if additional taxation be imposed to cover the

cost, it will mean that we shall have to impose taxation

amounting to 25% more than the actual cost, owing to the

fact that such additional revenue will be liable to

military contribution. It is estimated that the gaol

will cost $2 millions, to be spent at the rate of

$1,500,000 a year. To meet this expenditure by extra

taxation would mean the raising of an additional $1,875,000 a year, a burden which I consider too heavy

for

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