XN000022-1974-02-27 — Page 18

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Wednesday, February 27, 1974

Only $2,040 million of this difference can be covered by additional

resources through higher taxation, additional capital revenue and the

raising of loans.

"So there will have to be a re-phasing of $1,960 million worth

of expenditure to later years or various adjustments and economies," the

Financial Secretary said.

He said the growing domination of the new towns in the pattern of

capital expenditure led to three obvious possibilities so far as the

residual difference of $1,960 million was concerned.

The first would be to hold back expenditure on the now towna so that

it does not unduly damage the pace of development works not connected with

the new towns.

The Financial Secretary ruled out this possibility as the effect of

this would be to delay the ten-year housing plan.

He also ruled out the second possibility, which was to proceed with

the new towns at all costs in terms of development elsewhoro.

**So we must look to a third possibility which is in the nature of

a compromise: that is to say, to maintain over the forecast period all

capital expenditure except that related to the new toms and to other public

housing at the level proposed for 1974-75."

This approach, he said, would reduce the difference by some $1,420

million to $540 million.

The only ..

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