WEDNESDAY, 1st MAY, 1918
    
                                                                                                               ———                                                                                               Present:

J. O. Giles, Esq. (Chairman). H. H. Paynter, Esq. F. E. Venn, Esq.

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FREDERICK HUGH OLDHAM, Engineer for Agricultural Water Supply, sworn and examined:

12142. By the CHAIRMAN: The first matter we wish to deal with is the Harvey Estate. Who authorised the irrigation scheme at Harvey?—The actual undertaking was authorised by the Scaddan Government, but the preliminary work was taken in hand before the change of Government. There was a certain amount of design done before that, but the actual construction was authorised by the Scaddan Government. The work was started and stopped several times on account of the delay in passing the Act.

12143. By which Government was the Act introduced?—The Scaddan Government.

12144. So that the previous Government would have no power to commence the work without an enabling Act?—The work was started before the Act was passed and carried on to some extent. It was stoped because the Bill was thrown out at the end of the session and the Scaddan Government stated they did not feel justified in going on, as apparently at that time Parliament was not sympathetic to the proposal.

12145. Who were the persons anxious to go on with the work, the Scaddan Government or the people at Harvey?—The people at Harvey. I think Dr. Williams was the first man who put the thing into concrete form. He produced a printed pamphlet, a copy of which I think he would probably be able to make available.

12146. Which side was anxious to go on with the work?—The people at Harvey; they pressed the Government.

12147. Who was the engineer in charge of the work?—I was.

12148. What was the original estimated cost of the work?—The figures as regards that are given in the report of the Engineer in Chief. The estimated expenditure was £37,500 upon the engineering works. That did not include overhead charges, and of that £3,500 covered work which was necessary to put in at the time, but which was chargeable to further development, over and above the existing scheme.

12149. As a matter of fact that £3,500 is debited to a No. 2 scheme?—Yes.

12150. Did the estimates at the time show that the £37,500 would be exclusive of the overhead charges?—Yes, because the estimate is given in detail and there is nothing mentioned about overhead charges.

12151. What would the overhead charges be?—Head office expenditure, a proportion of the salaries of the head office. A similar arrangement exists in connection with railway construction. The estimates are put up for the cost of the railway, the capital cost of the engineering work is ascertained when the railway is handed over and a percentage is added by the Public Works Department to cover head office expenses. This estimate was run out on similar lines.

12152. What has been the actual cost of the scheme with all charges to date?—The actual expenditure, including the overhead charges has been £47,193.

12153. From which £3,500 is deducted and charged to the No. 2 scheme?—Yes. In order to get the exact statement there should be credit in regard to certain land which was purchased for the site of the weir and to cover the main basin of the weir. At the time it was purchased it was found it would be cheaper to purchase the whole farm rather than pay for severance through purchasing a strip through. That farm is in the hands of the Government and the greater portion of it is available for re-selection. The price paid for that farm was £1,350. The area is approximately 600 acres.

12153a. What area of land does the scheme serve?—3,365 acres.

12153b. How much of that area is rateable?—The area rateable under the Act is only that land for which water is actually provided on the spot, land for which the channels are constructed to the delivering point, and that area is 2,657 acres.

12154. Under what control was the work carried out?—From the Minister for Water Supply.

12155. Was an agreement arrived at with the Harvey people as to the scheme and its details before it was finally decided to go on with it, and if so, what were the details of that agreement?—An agreement was arrived at at a meeting at which the Under Secretary and I attended. There were there a number of the principle Harvey settlers, who were appointed to meet us. The procedure under the Act is that the Minister shall advertise the scheme, that he will cause to be prepared plans and descriptions of the work, statements showing the earnings estimated to be derived there from, and the