The session of 1877 began with no further progress. To the Joint Committee's requests for information the Minister of Public Works replied that no designs had been settled on and in any case competitive designs would involve reconstruction of the whole block. More debate ensued and finally the sum of £2,500 was placed on the Estimates and a second Royal Commission set up to superintend the erection of the building. The money was not voted, however, and the Commission did not meet.
The Library now occupied three rooms, with a further office for the Librarian, but the growth was continuous. Two more rooms were taken over from the Legislative Council in 1881 and temporarily the Library could shelve all its books.
No success had rewarded the Committee's desire for new buildings in the seventies, but in 1882 it seemed that luck was in its way. £20,000 was placed on the Estimates for the partial reconstruction of the buildings which were to include a new Bellamy's as well as a new Library. Only £10,000 was voted, however, and this was spent on Bellamy's. The new building had a bad effect on the Library, cutting off the sun and making it damp, though the Committee had a consolation prize, receiving the old Bellamy's for book storage.
So the matter dragged on. In 1886, on the initiative of the Premier, £5,000 was voted for a new building, plans were prepared as quickly as possible and tenders called, but none was accepted before the end of the financial year so the vote lapsed.
By now the Committee seems to have been almost reconciled to the fact that there was little immediate chance of a Library being erected. Frequent requests were however made for something to be done and the slightest possibility of a surplus in the Consolidated Fund always raised hopes. Assurances were frequent that Cabinet was worried about the housing of the Library, and whenever possible an extra room was given.
In 1885 the Library was located in six rooms, some remote. More were given later, though some were taken away. In 1892 the Librarian reported that the building "simply cannot any longer accommodate the books". But it was to be nearly 10 years before the new building was to be ready for storing books.
The situation was indeed growing more and more desperate. Many books, particularly old novels and duplicate periodicals, were given away to hospitals and libraries, and files of newspapers were no longer preserved, while much of the Library stock could only be located with difficulty. In 1897 the Library was spread all over the building with many of the rooms outside the control of the Librarian. Books were stored in two Ministers' rooms, the ladies' tearoom, and two committee rooms. A motion was brought up in 1896 to dispose of certain of the lesser used books, but it was defeated and steps were taken to case the books and house them elsewhere.
Economic conditions were somewhat better in 1897, and to the Committee's joy, Cabinet showed signs of approving the construction and plans were eventually sent to the Library Committee for approval.
The Government had selected Mr Thomas Turnbull as architect and he was instructed to draw up plans not only for a Library but also for committee rooms and an imposing entrance to the buildings generally. On the last day of the session they were approved, but as the vote was for only £7,000 the Library Committee drew a line across the plan and said the committee rooms were not to be built.
Demolition of the old building was undertaken in February 1898 before tenders closed. When they were opened, they were found to be so much in excess of the estimate that all were rejected and it was decided to carry out the work under the cooperative system. The lowest tender for ordinary construction was £42,000 and for fireproof £45,300; the others were considerably higher.