XN000022-1971-02-24 — Page 2

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Wednesday, February 24, 1971

There will be no change in the water charge for the building

industry at $5 per thousand gallons.

Sir John proposed that these changes be brought into effect on

July 1, but for shipping or building from April 1.

Charges for salt water for flushing purposes will be raised from

40 cents per thousand gallons to 70 cents, with effect from April 1 for

bulk consumers, and from July 1 for others, based on fresh-water meter

readings taken on or after the latter date.

In connection with water, the Financial Secretary said the Government

must proceed at once to implement the High Island Water Scheme, now estimated

to cost $1,000 million.

But since the Scheme could not begin to produce any water until

1976, and would not reach full supply before 1979, the Government had

concluded that it must set up desalting plants capable of producing 20

million gallons a day by 1974.

This would be a single-purpose plant, not linked with the production

of electricity, and plans for the installation would begin immediately. He

estimated the cost at $190 million.

Sir John's final proposal was that the Revenue Equalisation Fund

be wound up, and its assets transferred back to the General Revenue Balance.

He described this as a "formal one rather than one with any substantial

practical consequences."

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