THE BURDEN OF FIRST COST

Dominion, Volume 14, Issue 44, 16 November 1920, Page 7

THE BURDEN OF FIRST COST

HOW PERPETUAL INTEREST CHARGES ARE PILED UP. "The curse.of these big local works seems to be the excessive amount of the first cost," said Mr. 11. D. ..Bennett at the fori!nightlv meeting of the council of the Wellington Chamber of Commerce yesterdny. Take, our own tramways, and sno tho enormims annual charge there is against the first cost. In the caso of Mangahao, I think tho duty of the Government! 'should be to see that the first cost is kept as low as possible by remitting tho duty on machinery or in any other way, to that this killing animal .charge in interest may not bo so great. I do not tUiink that is taken enough into consideration; you seo these interest charges become perpetual charges —for ever."

Mr. C. M. Banks thought there was a good deal in what Mr. Bennett said. He also thought, that if local engineering firms could make any of the machinery in connection with hydro-electric works, they should bo given the work. At the same time, ho said, the Government had l<i raise revenue somehow, and if duly was not charged on machinery ifc would be placed on something else. Mr. Bennett said that it should not be on public iltilities such as electric light, gasworks, and tramways. Now that they were going in for these ' hydro-electric schemes a very careful watch should bo kept on first cost, in order to make tho burden ns light as possible for all tnuo to come.