Tuesday, 1st MAY, 1917. (At Perth.)

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

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HUBERT CHARLES TRETHOWAN, Under Secretary for water supply, sworn and examined:

8537. To the CHAIRMAN: I have a statement here which I think covers all the questions contained in your communication to me, and with your permission I will read it. Questions 1 and 2 I have grouped, These are (1) Cost of water supplied to settlers, and (2) Cost of water supplied to Kalgoorlie. As regards the settlers, the cost is taken as 11 per cent. of the capital cost of the mains made up as follows:- 4 per cent. interest, 5 per cent. depreciation, and 2 per cent. depreciation provides for a 15 year's life. The operating costs some-what exceed 2 per cent. We charge pumping costs against the extensions, but no other costs.

8538. In that connection we understood from a previous witness that the cost of pumping water to Cunderdin was 1s. 7d. and to Merredin 2s. 9d. Do you remember whether those figures would about represent the costs?- I think those costs take into consideration other factors besides pumping. The cost is something less than 1s. on the whole system to Kalgoorlie. In regard to the extensions, we charge pumping on the basis of 1d. per thousand gallons per pumping station. the 2 per cent. covers the whole cost of the pumping as well as the operating cost of the extension. The pumping is quite a trivial amount which is charged against the extensions. As regards the cost of the water supplied to settlers along the 30in. main, it is hardly practicable to compute the actual cost of delivering water taken at the varying points on the main conduit by one of the many classes of consumers. The difficulty is to establish a basis for an exact apportionment of the annual expenses of the whole system. This is affected by the rates of consumption from each section of the main which is a constantly fluctuating factor, as well as by other considerations such as the fact of consumers off extensions getting the water delivered free at the off-take from the 30in. main. The average cost of delivering all water pumped from Mundaring in the year 1915-16 was 6s. 0¾d. per thousand gallons and the average proceeds 4s. 11¾d. By average proceeds I mean the total revenue derived from the undertaking including the mining revenue. The accountant has prepared a statement in this connection which may be of interest to the Commission. Taking Burracoppin as the divisional point, separating the mining community from the agricultural community, he shows the following figures:-

............................................ West of Burracoppin..................................................................................... .East of Burracoppin.

Gross revenue.........................£40,696........................................................................................................£194,818

Average price realised................3s. 8.8d........................................................................................................ 5s. 3.01d.

Local expenses

including 

operating costs,

pumping 

and capital

charges on 

reticulation..................................£24.418.........................................................................................................£50.172

Balance available for

maintenance and

capital charges on

main system...............................£16.278...........................................................................................................£144.646

Do. per thousand gallons................1s, 5.92d.........................................................................................................3s. 10.79d.

Quantity sold................................208 mil. galls....................................................................................................742mil. gals.

The consumptions are in the ration of approximately 2 to 7 and the contributions to the expenses of the main system are in the ratio of 2 to 18. This shows that the agricultural community are not being charged more proportionately than the mining community. I might mention that the business done west of the Burracoppin is not solely in the direction of supplying farmers because we have a large number of important towns which we supply, and we also supply the railway system. Taking your questions 3 and 4, dealing with the prices charged for water to settlers and the price charged to Kalgoorlie, I will hand to the Commission a complete schedule of all our rates and charges throughout the whole system. The prices to settlers range from 8s. per thousand gallons to 9d. per thousand gallons, and at Kalgoorlie the prices are from 15s. to 2s. It is clear that settlers have an advantage compared with the goldfields consumers for the reason that the former get water delivered free, except for the actual pumping costs, at the off-take from the 30in. main. Generally speaking, it may be said that the standard price for water at Kalgoorlie is 7s. and that the standard price for settlers served from the