H.—l5A.

four-berth scheme at the Inner Harbour, as against a two-berth scheme at the Inner Harbour or the completion of the Breakwater Harbour. In evidence Mr. Holmes stated (on page 104) that his unit costs included plant, Messrs. Cullen and Keele in their 1925 report do not include the plant in their dredging-costs, but they estimate the dredging, plant, and pipe-lines at £98,300, which at Mr. Holmes's estimate of 3,518,350 cubic yards to be dredged (including the quantity behind deflectors) would absorb 0*5617 of Is. per yard of his unit prices. The average of the unit prices adopted by Mr. Holmes is about Is. 3d. Deducting the unit cost of plant—viz., 0*56 of Is.—leaves o*7 of Is., or approximately B|-d. per cubic yard to pay for all costs of dredging, including interest, sinking fund, and repairs to plant. Under the Napier conditions I am satisfied that the works cannot be done at this price. In my estimates I have not included any cost of plant. My unit prices include the cost of dredging, interest, sinking fund, and repairs to plant. The unit prices I have adopted are—Dredging at outer channel, Is. 3d. per cubic yard ; between moles, 2s. per cubic yard ; basin, Is. and Is. 3d. per cubic yard. Messrs. Cullen and Keele's scheme, 1912 and 1925, provide for a tide-deflector and dredging on the north side of same. We have seen no detailed designs for this, so have included Mr. Holmes's estimated cost. Forming and making roads Mr. Holmes includes under reclamation. For comparative purposes I provide an amount in each estimate to cover this item, and also for railways, which Mr. Holmes does not mention. J. D. Holmes : Commissioners : Two Berths. Four Berths. £ £ Dredging outer channel .. .. .. .. 61,500 104,575 Dredging between moles .. .. .. .. 46,175 42,963 Dredging basin .. .. .. ■ .. 61,080 151,250 Dredging north of tide-deflector .. .. .. 42,500 42,500 Rebuilding and removing mole .. .. .. 26,300 34,000 Protecting banks between moles .. .. .. .. 4,000 Quay-wall .. .."] fBl, 200 f162, 400 Cargo-sheds .. .. [ „19,800 4 J 39,600 Cranes .. .. '■ " 2 bertllS l 4,000 berths 1 8,000 Concrete floors, sheds of quay j [10,000 ( 20,000 Buoys .. .. .. .. .. .. 1,000 1,000 Roads, at back of wharf only .. .. .. 9,000 18,000 Railways, at back of wharf only .. .. .. 2,500 5,000 Moles to reduce range .. .. .. .. 40, 000 40, 000 Mole to tide-deflectors .. .. .. .. 23,600 23,600 428,655 696,888 Contingencies, 5 per cent. .. .. .. .. 21,433 34,844 £450,088 £731,732 Cost per berth .. .. .. .. .. £225,044 £182,933 Or, correcting what we consider is an underestimate by Mr. Holmes for dredging and mole, the totals become— £ £ Total cost.. .. .. .. .. .. 598,908 731,732 Cost per berth .. .. .. .. ..299,454 182,933 It will be seen that the estimate of Mr. F. W. Furkert, Engineer to the Public Works, who only provides for two cargo-sheds and cement floors for same, is £660,000. By adding the cost of two additional cargo-sheds and floors to same, plus roads and railways, his total cost, exclusive of dredging plant, is £708,800. This is in close agreement with my estimate. lam of the opinion that, including plant, an approximate estimate of the cost of this work may be taken as £830,032. My opinion is, further, that if these works were carried out the port may at any time be closed owing to the silting of the Outer Channel wholly or in part, and that, at the best, overseas vessels drawing 26 ft. could only enter or leave the port in moderate weather, during daylight, at high-water slack tide, and would require the assistance of a tug to do so. In estimating the annual overhead charges I have adopted the following rates : Interest on capital, 5J per cent. ; Sinking fund, J per cent. ; Renewals, 1 per cent. ; Maintenance, 2f per cent. As I have provided for interest and sinking fund and repairs in my unit cost of dredging, the additional annual charge will be — Dredging— £ £ Maintenance dredging: £341,288 at 2f per cent... .. 9,385 Renewals of plant: £98,300 at 1 per cent. . . 983 10,368 Wharves, sheds, and structures — Interest: £731,732 at 5J per cent. .. .. .. 40,245 Sinking fund: £731,732 at £ per cent. .. .. .. 3,658 Renewals: £731,732 at 1 per cent. .. .. .. 7,317 Maintenance: £731,732 at 2|- per cent. .. .. . 20,123 71,343 £81,711

72