CO129-534-6 Loans for public works 24-2-1931 - 11-8-1932 — Page 7

upset estimates of cost.

In the last report

by the Consulting Engineers on the second

part of the water works scheme, it is stated

"It is difficult to say what will be the

34

ultimate effect e unit costs

the deprecia-

tion in the value of thedollar, and, although

there has not, so far, been any serious

increase, it seems certain that costs must

rise if there is no appreciable recovery in

its value."

Quite apart from these general objections.

it is clear from consideration of the details,

ti that this ambious loan programme cannot now

would

be sanctioned, although the Governor w be

glad to receive approval "of the whole proposals

contained in the Memoranda" The Water Works

scheme must wait until the Consulting Engineers

are satisfied as to the foundations of the

dam,and

and the steps which the Deputy Treasurer

indicates on page 9 of his Memorandum

ai

necessary to put the Water Works on a satisfac-

tory paying basis should be begun before any

further expenditure is sanctioned.

It was always contemplated that the

would

new gaol shoula be built out of revenue.

The

fact that the financial position has deteriorated

is no justification for building it out of

loan. It should be disallowed as a loan

work and postponed indefinitely until the

financial position improves.

The Aerodrome and Harbour development

schemes are more than half completed and it is

clear