As the recession continued, then Prime Minister Robert Menzies was forced to cut spending on capital works. The Snowy Mountains Scheme, commenced in 1949 by the Commonwealth Government, was a source of national prestige and political advantage, and so the cuts were made to state government projects. Commonwealth loan funds were cut off to the Kiewa Scheme, and power from the Snowy Mountains Scheme would be provided to Victoria to fill the gap. Employment on Kiewa dwindled to one thousand men.