HUGE LOSSES

Wanganui Chronicle, Volume 76, Issue 105, 6 May 1933, Page 8

HUGE LOSSES

HOTELS AT CANBERRA. . GOVERNMENT FAILURES Sydney, April 20. lhe closing of the Hotel Kurrajong, at Canberra, brings almost to an end lhe disastrous era of Government-con-trolled hotels in the Federal capital of Canberra. There is now only one hotel—the Hotel Canberra—still under the control of the Government, and as this is showing a loss the Government is quite willing to lease it to anyone willing to take a risk. The hotels at Canberra are estimated to have lost about a quarter of a million. They were constructed at a cost of £365,000, and never at any time before the present Government took office have they contributed anything towards the interest, on this huge sum. The Hotel Acton, built at a cost of £75,000, has been closed for three years as a hotel, and is now occupied bv the Patents Branch. The Hotel Ainslie, which cost £31,000 is now let to private enterprise ,after having been, closed for years, and although the rental is little more than nominal the Government is at least relieved of the cost of putting in a caretaker, and is receiving some contribution towards the interest.

The Hotel Wellington, built at a cost of £29,000, was reopened last month by private enterprise, after having been closed for more than two years. Here again the Government is relieved of the cost of maintenance and is receiving something towards the interest The hotel Currajong w r as much, more expensive, and cost £78,000, It was the home of most of the members of the Federal Parliament, but now they will have to go to the more expensive Hotel Canberra. However they will enjoy a slight cut in the rates. The Kurrajong is to be closed as a hotel because the Government refuses to bear any longer the loss on this huge place. It will be used as a hostel for the temporary clerks who will be engaged in census work. Afterwards it may be converted into Government offices. That means the dismantling of many thousands pounds worth of valuable fittings, which, ultimately, perhaps, will have to be sold as scrap.

The Hotel Canberra is the mammoth among the white elephants. It cost more than £154,000. to build and as long ago as June 1928. it had lost £BO. 000. The total Joss to date is probably more than £lOO,OOO. It is" clear now that far too much money was spent in providing hotels at Canberra, but it is no use crying over spilt milk and the Government is doing what it can to minimise the loss.