ENG-1969 — Page 232

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PUBLIC WORKS AND UTILITIES

Peninsula and High Island and the fresh water lagoon thereby created will contain between 50,000 million gallons and 75,000 million gallons storage depending on the final details of the scheme.

Continuing the progressive development of the distribution system, 82 miles of fresh and salt water mains were laid for exten- sions in new development areas, for renewal of mains in existing urban areas and for further improvements to salt water flush- ing supplies in Hong Kong Central, Kowloon, Kwun Tong and Tsuen Wan. New service reservoirs for fresh water at Shau Kei Wan, Red Hill and Mount Nicholson on Hong Kong Island and for salt water at Sau Mau Ping were completed while a large pumping station for salt water at Kwun Tong was brought into service. The total expenditure on the development of the system amounted to $19 million.

BUILDINGS

The most significant occurrence in the building industry this year was the sudden increase in prices of materials and rates of wages. Cement, steel and timber were the main basic materials affected and prices increased between 20 per cent and 40 per cent in the course of about two months from May, while building opera- tives wages rose by an average of some 25 per cent. With tight profit margins these increases could not be absorbed by the con- tractors and building costs therefore rose proportionately. The cause of these increases has been attributed to the resurgence of private building in Hong Kong resulting in a shortage of labour in the industry coupled with a reduction in the supplies of materials available from abroad and a substantial increase in the world price of steel.

The pace of construction of government buildings was generally maintained although the programme was, to some extent, affected by the continuing financial difficulties of some contractors. Private architects, private quantity surveyors and consulting engineers continued to assist in the public building programme. A steady programme was again maintained in the construction of new buildings for HBM Ministry of Public Building and Works and in the maintenance of existing British Armed Forces buildings. Expenditure during the year amounted to approximately $35