CO129-572-14 Proposed reorganisation of water services 7-4-1938 - 3-4-1939 — Page 32

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Enclosure No. 3.

(2)

- 2 -

"Water rate" in addition to a unit charge for all

consumption; the inclusion of military contribution

and the

in the costs of the water undertaking;

proposed treatment of past capital expenditure.

4.

Modifications were made in the original

scheme with the object of meeting some of the

criticisms put forward. I enclose a copy of a

further Sessional Paper which was laid before Legislative Council on the introduction of the

Waterworks Bill, incorporating the Financial

Secretary's original nemorandum and a statement of

these modifications. The important changes are two.

(a) As pointed out in a semi-official

communication from the Colonial Office the

original scheme included too large a provision

for military contribution chargeable to the

Water Revenue. This has now been excluded

and in consequence it has been found possible

to reduce the suggested standard unit charges for water consumption.

(b) Particular objection has been raised to the

proposal to repay past capital expenditure

made from general revenue at a rate of 2 per cent

per annum and there has been substituted for

this proposal a contribution of equal amount

to a new Renewals Fund which would be

available for future renewals and replacements

of capital equipment, including a certain

amount of betterment. This meets more

satisfactorily the general desire for