PUBLIC WORKS STATEMENT.

Auckland Star, Volume XXII, Issue 214, 9 September 1891, Page 2

PUBLIC WORKS STATEMENT.

[by telegraph. 1

Wellington, this day. ! In the House laat night the Minister for j Public Works (the Hon. R. J. Seddon) delived the Public Works Statement as fol- j lows :— ! Mr Speaker,—As my honourable colleague, the Colonial Treasurer, has already intimated in his Financial Statement, that the Government is of opinion that borrowing in the F-eglish money market must ceasa; ana, as the announcement of tho intention to borrow large sums of money, together with the statement of the manner of its proposed expenditure, were the chief elements of attractiveness in former Public Works Statemsnts, it is evident at the outset tbab the scatemene which I have to make to the House this evening must be considerably leas attractive and interesting than some of its predecessors have been. To make it pleading I have found to be impossible— there being so much work to be done, and co little money available to do it with. With the view of making myself fully acquainted with the requirements of each district, and the work 3in progress therein, I have during the brief recess since the last short session of Parliament visited the several provinces. It is true that the time at my disposal was Eomewhat limited, but as a pledge had been given that the House should be called together early in June, it wa3 necessary that I should be as expeditious as possible. The result of my personal observation will be disclosed as the several works to be referred to herein are brought under review; but before dealing with the works in detail, it •will perhaps be well for me to fully inform bonourable members of the condition of the public works fund. PCBLIC WORKS FUND. The state of this fund on the 31st March last (including an asset of £62,974, due to Pare I. of the fund under the Government Loan 3to Local Bodies Act, 18S6) was as shown in the following table :— Parti. Part 2. Parts. Total. £ £ £ £ Unexpected ballance March, 31st, 1890 .. 239,456 336,935 426,806 1,053,247 Expenditure for the yearended

March 31, 1891 125,311 30,878 175.152 335,151 Balance remaining March 31, ISSI .. .. 110,645 356,107 251.344 718,096 Liabilities existing March 31, 1891 .. .. 86,608 44,903 98,876 24,038 Ket balances available 31st March, 1391 .. 14,037 311,204 152,468 477,709 As has already been intimated in the Financial Statement, the Government propose to devote £200,000 of the accumulated sinking fund, set free this year by our loan conversion operations, to public works purposes. One hundred and twelve thousand pounds of this amount it is proposed to-allocate to miscellaneous public works under part 1 of the fund (as shown on the table appended to this Statement), and the balance of £83,000 to railway works under part 3 of the fund, as shown in table C. The following table shows the state of the Public Works Fund on the 31sb March last, and an estimate of how it will stand on the 31st March next, if the proposals which I have now the honour to submit to the House are approved of:—

Part 1. Part 2. Part 3. Total & £ £ £ Cash balance on 313t March .. 110.645 356.107 251,311 718,096 Credit from released sinking funds .. .. 112,000 nil 83,000 200,000 Probable recoveries during the year nil nil W,OOO 14,000 Totals ..: - s. 222,645 356,107 355,344 932,086 Amount proposed for actual expenditure during *».-.- ---1891-92.: ..'200,139 197,631*261,426 659,196 Estimated cash balances on the3lstMarch, 1892, available for expend!- , ture after that date 22,506 153,476 91,918 272,900 Cash balances on the 31st March, 1891 .. 110,645 356,107 251,344 713,096 Credit from released sinking fund .. .. 112,000 nil 83,000 200,000 Probable recoveries during the year nil nil 14,000 14.000 Totals .. .. 222,645 356,107 353,344 932,096 Total appropriation proposed for expenditure during 1891-S2 and to cover liabilities at the end of the year .. 221,419 257,631 348,426 837,476 Estimated balance on the 31st March, 1892, available for future appropriation .. 1,226 88,476 4.918 94,620 The expenditure on all works and services throughoub bhe colony under the public ■works fund up to the 31sb March last, including the purchase of the provincial and district railways, has amounted to a total sum of £23,110,081, the principal ibems being as follows, viz. : — Railways, £15,208,374; roads, £3,598,163; immigration, £2,145,150; public buildings, £1,780,785; purchase of native lands, £1,196,479; lighthouses, harbour works and defences, £881,818; defence purposes generally, £429,719 ; telegraph extension, £606,548 ; waterworks on goldtields, £561,101; cost of and discount on raising loans, etc., £1,021,472; and departmental, £352,170.

DEPARTMENTAL ADMINISTRATION. On taking charge of the Public Works Department, I expected to have found that the"expenses in connection with the administration would have been bub small, seeing that our predecessors had advised the abolition of the department, and that their policy in this respect was initiated three years ago. On procuring the returns showing the head and district offices administrative expenses, however, 1 found that they were very large, and that the department was considerably overmanned in view of the reduced amount of work which it is novy called upon to perform. The services of some forty officers were accordingly dispensed •with, the saving in salaries being over £8,000 por annum, while the compensation payable to officers leaving amounts to £2,239. So far as the present arrangement of the staff is concerned, there is no alteration of moment required. It is my intention to arrange that all the clerical and administrative work of the Department shall in future be undertaken by the Undersecretary and his stafl'. This will loavo the Engineor-in-Chief free to deal with questions of a purely engineering character. By this arrangemont a Having will be effected, and the work will bo more evenly distributed. WORKING LINES. substantial increases are observable on isomo sections, the most noticeable being the following :-Whangaroi-Ramo, from 1 Iβ 4d per confc. in 1389-90 to £1 12s 2d in 1890-91 ; tho Auckland system generally, from £1 9h 10d per cent, to £2 4s 4d por cent. ; and Greymouth section, from £4 3s 3d por cent, bo £4 16s 8d por oenfc. For somo time past there lias been coneidorablo agitation in favour of a trial being given on our railways to the "zono" eyatetn, us advocated by Mr Samuel Vailo, of Auckland. Tho position in which tbo mil ways have been placed by tho I-egisluburo prevents any change beting made for tho present in connection with tho management of our railways. There has, unfortunately, been tt greuC deal of friction betwoen the Comniinhionovti ntui thoir employees and ex■"■atfloyectt, ixnd I have ueed my best en-

deavour3 to remove that friction, and to promote good feeling. I have not thought ifc wise to interfere in any way with the Commissioners in the details of the management of the railways, as such an interference would be a violation of the intention of Parliament, as expressed in the Government Railways- Act. At the same time, aa political head of the Railway Department, I have carried out the duties dependent upon the position in that spirit which I considered that Parliament desired should prevail. From the number of claims preferred to Parliament every session by employees or ex-employees who have been injured in the railway service, or the widows or children of men killed, or who have died while in that service, it becomes more and more evident that an equitable scheme for the insurance of our railway employees is an absolute necessity. The Railway Commissioners have prepared proposals to meet the difficulty on two occasions, bub these proposals have not proved acceptable to the men. WELLINGTON , AND MANAWATU RAILWAY. The Government have given full consideration to the proposals which have been brought forward by thehon. members from time to time with reference to the purchase of the W'ellington-Manawatu railway. The question requires consideration, first of all from a financial point of view, and the condition of our finances at the present time i 3 such that ib would be inadvisable for the colony to undertake so great an additional liability. Some time ago negotiations were entered into by the Company and the Government, and term 3 were then ofiered to the Company which were fair and reasonable. The Company refused, however, to accept them, and from that time to this they have not approached the Government on the subject. It would be impolitic for the Government to endeavour to force the company to sell its property, and would only result in the colony having to pay more for the railway. Aβ matters stand, however, the Government consider it would be unwise to take action at the present time.

RAILWAYS UNDER CONSTRUCTION. On taking office, the Government found that with the exception of one or two works that were nearing completion, there wa3 nothing of any importance that was being proceeded with, mosb of the votee for railway works having already been expended. I discovered that whilst the conditions for public works contracts provided that sub-contracting was not to be allowed, in actual practice this condition was evaded. Accordingly I had amended conditions of contract prepared. It may, perhaps, be contended that by the stoppage of sub-contracts the worka will cost the colony more to construct. This i 3 a fallacy, however, and the results hare proved it to be so. The sweating system in its most flagrant and baneful attributes has been practised, as the subcontractors have been led to bake work at prices thab could not pay thorn, with the result that the business people who have supplied them with goods have very often nofi been paid. The work has been done in a slovenly manner, and frequently delayed long after the date fixed for'ita completion, and the result So the district in which the work is situated, instead of being of a beneficial character, has proved to be the reverse. When considering the question of sub-contracting, I also took up the question of the necessity of inaugurating a new system in connection with the construction of our public works, a syatem which in the near future must, I think, obtain throughoub. I allude to the system of constructing works on the co-operative principle, that is, giving work direct to workmen, and dispensing with middlemen altogether. An opportunity for introducing the 'system occurred in connection with the construction of certain sections of the Ngakawa railway extension to Mohikihini. Public tendere had been invited for a certain section of this railway, the conditions being of the mosb liberal character. No deposifc was required, and the work was cut up into shorb lengths. Almost immediately the benders were accepted. For some of the sections the contracts were thrown up, and ib became a choice, therefore, between calling for fresh tenders on the original method or of giving the co-operative principle a trial. On arriving in Weebporb I found a large number of men who had floqked there from different parts of the colony expecting to get employment on the construction of this railway. To avoid the delay that calling for fresh tenders would have involved, I decided to let the sections referred to, three in number, on the co-operative principle, and asked the men to divide themselves into parties of about 50 each, and to select from each party certain trustees, the trustees to take the work from the Government; in the ordinary way, bub the work itself to be done by the whole of the men, each one having equal interest with his fellows, the price to be given to be fixed by the engineer in charge of the work. On this the men went to work in a few days. They have now almost completed their contract, and are very well satisfied with the result. As often occurs when new methods are adopted, there was a little friction at firsb, and a little difficulty in the classification of the men. The strong and able-bodied men did nob altogebher like to work for the aged and the feeble, but after classifying both the men and the work, and giving the lighter work to the aged and less capable men, and the heavier work to those best fitted for ib. the earnings as a whole proved satisfactory, and the men are quite prepared to go to work again on the same principle if further work were available. The experience gained in this instance has indicated the course which ib will be advisable to adopt in future. It should be arranged—(l) That the men form themselves into parties voluntarily ; (2) in case there are more men than work can be found for them, men of equal capabilities should ballot among themselves as to who is to get the work ; and (3) thab a classification of men be arranged beforehand, so that the abler and stronger men, and those accustomed to the work, might receive the largest share of the profits, the next, or second-class, a slightly lower rate, and older and weaker a somewhat lower rate again. The colony in the pasfi has not received bhe benefit thab it should have received from the public works expenditure. Wβ have had contractors who have made large fortunes, and who have taken the money so quickly and easily made and spent ib in the mother' country or in the other colonies. Again, we have had large sums of money expended in the different districts, yet the districts have nob profited by the expenditnre. We have had large estates made valuable by the construction of works, and yet we have nob increased the settlement of the land. Had bhe system of co-operation obtained in years gone by, had lands adjoining the works been thrown open for settlement as the work progressed, had those employed shared in the profits in addition to their wages—which is the principle of the co-operative system—then as they shared their profits, so they would huvo taken up bhe land and. settled thereon. It is necessary that a remedy should be devised for the mistakes of the past, and that remedy is the construction of works on the co-oporafcive system, and throwing open of lands for settlement in the vicinity of the works. There is doubtless a certain class of public works where technical skill is required, such as large bridges and so forth, in which bho old system of doing bhe work by public tendor, and having a middleman in the shape of a contractor, will for a time at least bo necessary ; bub in the course of time even this, as working men _ gain more oxperience, and the absurdity of the middlemen being kept to make a profit from both the Government and the workmen ia raoro clearly recognised, will he seen to be entirely unnecessary. There will aleo

sometimes be a difficulty in carrying out what I have suggested as regards settlement of lands, owing to land in some parts of the colony being held by natives or by private owners. As a case in point take the construction of the North Island Main Trunk Railway. Jf we proceed with the construction of that line to any material extent, it will happen the further wo progress through, or approach native lands, the more difficult it will become for the Government to deal with natives, and higher the price we shall have to pay. The same also applies as regards private lands. Take for instance the Blenheim-Awatere Railway. The completion of that work means that every pound which the Government spends upon the railway will give an increased value of twice that amount to the land through which the railway runs, and which is held by a very few persons. The Government considers, therefore, that it would be folly under the circumstances to construct these railways much further until arrangements are made with the natives tor the purchase of their lands, and with the owners of private lands that they will lease or dispose of the lands to be benefited on terms to be agreed upon between the Government and themselves. I will now refer to the several railway works in course of construction, dealing tirst with those in the North Island. KAMO-K A V.-A EAW A. I regret to say that the prospects, so far as the Kawakawa railway is concerned, are somewhat disheartening. The lino has cost in construction something like £90,000, and the coalfield for the opening of which it was constructed will in about six month 3be worked out. Prospecting for further coal has been carried on, but so far without any good results. In reference to the construction of the line from Kamo to Kawakawa the Government thinks the time has come to take action in the matter. We, therefore, propose to provide this year for the extension of the line from Karno to Hikurangi, and to devoto to this purpose the money at present allocated to the doubling of the Auckland - Penrose line. We do not, however, propose to extend the line from Whangarei. Any further extension of the railway that may be decided upon in the future should be in the direction of Kawakawa, with the view of connecting the Kamo and Kawakawa Railway with the deep water at Opua. From inquiries made I am fully satisfied that the coal deposits at Hikurangi are of an extensive character, and the expense of getting the coal will be small, so that when completed the returns from this line will probably be equal to those of the BrunnerGreymouth Railway. Another very strong ground for the construction of this extension is the fact that it brings the railway to within a few miles of the Puhipuhi forest, where now stands, at the risk of fire, something like 130,000,000 feet of available timber, valued at between £30,000 and £35,000. To see a valuable asset like this remaining, as it has done, year after year at such imminent risk, amounts almost to a criminality. To attempt to dispose of the timber before the line is extended would be a serious blunder, as speculators would buy it up on the prospect of the railway being constructed ; but if the line were constructed first, and then the land upon which the timber stands was cut up into blocks of 300 or 400 acres, and the right to cut the timber thereon submitted to public competition, allowing those who lease the blocks or purchased the timber to make their own connections with the railway, I feel satisfied that from the sale of timber alone the Crown would be reimbursed the entire cost of the line.

HELENSVILLE NORTHWARDS. The works on the Makarau section (3 miles 6 chains length) of this railway have been steadily pushed on with, and the formation as far as the tunnel is practically finished. The tunnel i 3 in hand and a commencement has been made with the work beyond ib. The .Mount Hex Wharf has also been finished during the year, and the line surveyed for an additional distance of about 6£ miles, and a trial survey run to a little south of Wellsford. After providing for liabilities, which amounted on the 31sb March last to £21,384, the balance remaining for allocation for this railway is £18,910. The Government, however, does nob think ib would be advisable under existing circumstances to proceed further with the construction of fehis railway, and in coming to this conclusion we are acting on the advice of the Railway Commissioners, who are well able to judge in the matter. The vote proposed V 3 for the purpose of covering the liabilities already existing, and any miuor contingencies thab may arise.

GRAHAMSTOWN-TE AROHA. Very little work has been done on this line during the last year, as may be judged from the smallness of the expenditure thereon, which amounted to £973 only. There is a considerable sum of money standing to the credit of this line, however, under the allocation funds as determined by the Loan Act of 1886, the unexpended balance on tbe 31sb March last being £31,096. A sum of £36,000 has been expended on the work, the whole of which is lying a perfectly useless waste, and whilst in the near future there is not much hope of the full completion of the line it would still be well to conetrucb the railway from Te Aroha to Paeroa, as by so doing some return upon tho whole outlay would be received. The mines in tbe district referred to are now in a most prosperous condition, and the general outlook warrants the Government in giving special consideration to the construction' of the line between the two places mentioned. The Government will, therefore, ask for the appropriation of £32,000 for this railway, which is practically tjie whole amount of the existing loan allocation for the work.

FUTARURU-ROTORUA. On this line the Kaponga contract, which includes platelaying 10£ miles in length, which brings the line to a point about 13i miles fromßofcorua township, is expected to be finished about three months from now. Of the remaining 13£ miles, between the end of the contract and Rofcorua, 6 miles of earthwork, culverts, and some drainage works at the Rotorua end of the line have already been done, having been undertaken by Maori labour about three years ago. The completion of the Kaponga section will not, however, bring the line to a point where it will be of any use for traffic. It has been suggested that a road might be made from the present road to the termination of the Kaponga contract, but the construction of this road, which would be six miles in length, would take a large sum of money, and when completed would not shorten the distance to Rotorua appreciably. Instead, therefore, of constructing a road, the Governmentpropoees with the utmostdespatch to extend the line three miles, which point would intersect the road from Cambridge to Roborua. The balance, £19,429, available from the existing loan allocation for this work, is only jusb sufficient to cover the liabilities already incurred on account of it, therefore we propose to allocate an additional sum of £15,571 thereto out of the released sinking fund. This ivill bring tbe total available funds for the line up to £30,000, and any further amount tbafc may be required in order to complete the line to the point indicated, can be allocated when available. NORTH ISLAND MAIN TRUNK RAILWAY. The only work thafe has been in hand on the Northern end of the line for some time past, is the Porotorau tunnel, and has been completed during the year. At the Southern end of the line a contract for the Manganoko section (nearly 4 miles in length, including platelaying), has been let, and a good stare made on the work ; and i a further length, about 2 lailes, between !

tfaa cud of the section and the Mangabine has been got ready for construction to meet the demands of the labour market, and is now in course of formation by the unemployed. The balance to the credit of the North Island Main Trunk Railway account on the 31sb ofj March last was £344,007. Of the £1,100,000 j loan specially raised for this work, £394,941 has been spent on the construction of the railway, £48,137 on the construction of road 3to give access thereto, £136,454 on the purchase of native lands within the railway area, £12,572 on departmental services, while the charges and expenses of raising , the loan amounted to £31,788, leaving an available balance on the 31st March last of £356,107, as already stated. Of this amount £83,531 has been specially allocated to purchase native lands, being the balance of the unexpended amount on the 31sb March last. Wβ ask now for the appropriation of £130,000 for railway construction works, £50,000 for roads to give access to the railway, and for further surveys £13,000. At the north end of the line there is a section between the portion already completed and the Porotorau tunnel, on which nothing: at presenb has been done. The section, which is 11 miles 9 chains in length, is proposed to be pus in hand as soon as my honourable col- j league, the Native Minister, is in a position to state that the acquisition of land in the locality has progressed satisfactorily to ad-1 niit of the work beins gone on with, without detriment to land purchase transactions of his Department. A vote of £56,000 has been placed on the estimates for this section accordingly. With the view of saving time, it is also proposed to leb a contract for the Makahine viaduct, at the southern end of the line, as the work will take a considerable time, to construct. If not put in hand soon it would retard the prosecution of the works when the native land difficulty is removed. The vote propoeed provides for this and the completion of the Makahine section now in hand by the j unemployed. Native lands are being acquired as fast ao possible, and as soon as circumstances permit the Government will call tenders for the works for which voces i have been taken. |

EKETAnUKA-WOODVILLE. Every mile of railway made either from Eketahuna or Woodville will promote settlement, and be a great benefit to the district and the colony. We propose, therefore, fco ask the House to vote a sum of £27,000, which will be expended partly at one end of the line and partly at the other. This must be taken only in instalments on account of the cost of the construction of the line, and later on, at an early date, when funds are available, further allocation to ensure the completion of the connection will be made. WELLINGTON - EKETAHUNA (TE ARO EXTENSION). There is a sufficient balance on the allocation for the railway under part 1 of the Public Works Fund to defray the cost of the proposed extension of this line to the Te Aro end of the City of Wellington. Our predecessors recommended the work and requested the sanction of Parliament thereto, but owing to various circumstances consent was withheld. The longer the construction of the work is delayed, however, the more serious will the complications become. The Railway Commissioners strongly recommend the work should be proceeded with. We, therefore, propose that the amount required for the construction shall be voted out of the balance of the railway allocation, under part 1 of the fund.

OTAGO CENTRAL RAILWAY LINE. This line was opened to Middlemarcb, a distance of thirty miles from the junction with the main Dunedin and Invercargiil railway, on May 4th last. The line ha 3 been formed and-the rails -laid for a distance of two miles beyond Middlemarch to connect v/ifch the ballast reserve. Working drawings and estimates have been prepared for a further 56 miles of this railway, namely, the Ida Valley, opposite Blackstone Hill, a distance of mi!e3 from the Winganui Junction, on the main DunedinInvercargillline, and 106 miles from Dunedin. I have come to the conclusion that the work should be expeditiously proceeded with. Taking into consideration the necessity for railway communication and the money already expended, it is impossible to stop the line at its present terminus. We, therefore, propose to appropriate the sum of £30,000 to be expended in constructing the line from Middlemarch towards Hyde. This must only be taken as an instalment on account, and as further funds are available additional allocations will be made. In my tour through the central Otago I did not see the country at its best, but one redeeming feature of all others was that in each place the repeated cry was, "Wβ want some land thrown open for settlement." As the existing loan allocation for this railway is exhausted, it is proposed to provide the amount for further extension partly from the released sinking; fund and partly from re-allocation of loan under part 3 of the Public Works Fund.

SUMMARY. Summarising the various appropriations proposed for railway works this 3'ear, the total amounts to £484,976. Of this sum, £323,289 is proposed for expenditure out of allocations already made to railways. £88,000 is taken from released sinking funds, £14,000 is derived from the sale of rolling stock no longer required, and the remainder obtained from a re-arrangement of balances under allocations determined by previous Loan Acts. As regards tshe allocation of these unexpended balances, the Government considers the pressing requirements for works on which it is proposed to expend them, the dearth of employment which exists at the present time, and which has caused the large exodus of our industrial population, fully justify the proposals submitted. One of the allocations proposed to be diverted is for doubling the line between Auckland and Penrose, for which work a sum of £23,000 wae provided no less than five years ago, but which no Government has proposed to expend.

MIDLAND EAILWAY. Although this railway is not being consbructed directly by the Government, the colony is so largely iuterested in the undertaking that I deem it advisable to make special reference to the progress being made with the work as done by my honourable predecessor last year. At the south end of the Brunnerton - Belgrove section of the railway the portion between Brunnerton and Mawheraiti (Little Grey), a distance of 31 miles three chains, has been opened for traffic. A further portion from Mawheraiti to the slab hub (or Tatuhai), four miles 50 chains long, is now ready for opening, and the construction of the remainder of the line to Reef ton, five mi1e3.30 chains Jong, ia well advanced. The amount agreed upon as the estimated cost of the whole railway is £2,50G,000. The cost of the works so far and ready for traffic (the estimated basis laid down in the contract), is in round figures, £240,000. If we add to this the sura of £220,000 as the possible value (on the same basis) of the work so far done on sections under construction, we have a total sum of £350,000 as values approximate (on contract basis) of all the works sq far done by the Company on its railway. This roughly represents about one-seventh of the whole work contracted for, leaving about six-sevenths of the estimated value of £2,150,000, to be done in the remaining three and a-half years, the contract time. From this it will be evident that the Company will have to proceed at a very much more rapid rate in future cbao it haa done in the past, if the whole works contracted for are to bo completed in the time, or near that time. The land grants so far madeto Lhe Company under contract total

to an area of nearly 150,000 acres, of an estimated total value of £115,000. The area granted daring the late financial year was '74,526 acres, of the estimated value of £64,103. Wβ have considered tbab the first step to be taken to conserve auriferous lands for mining is to proclaim the reserves, amounting in the ao-greo-ate co, say, 250,000 out of /50.000 acres/which the contract allows us to reserve, the first selections being in the immediate vicinity of the workings and in localities where gold is known to exist, and where the land would be wanted for bona fide mining. The proclamation of these reserves is proceeding as rapidly as possible. KAIHD VALLEY RAILWAY. This railway, which was constructed the Kaihu Valley Railway Company unde the provisions of the District Act, and mortgaged to the Government as security for guarantee by the Crown of debentures issued by the Company to the amount of £47,000, was taken possession ot on the 27th May, 1890, in consequence of non-payment by the Company of interest due on the guarantee debentures referred to. With the view of affording the company every opportunity of disposing oE the railway on favourable terms, the Government refrained from exercising its powerof sale underthe mortgage deed until 25th June last, on which dace the line was offered for sale by public public in Auckland after notice of the proposed sale had been advertised in the chief cities of both New Zealand and Australia for a period of three months. As no eligible ofier was received ab that sale, the property was directed to be sold under the conduct of the Registrar of the Supreme Court in terms of the Property Law Consolidation Act, and was duly purchased on hehalf of the Government an such sale (which was held on the 27th July last) for the sum_ of £1,000. Since being taken over the line has been worked by the Public Works Department, and the receipts covered the working expenses. It 13 intended to submit to the House a Bill giving power to the Government to vest this railway in the Railway Commissioners, or to permit the Public Works Department to go on working it, pending arrangements being made as to its further extension. It has been represented to the Government that it the line were extended five miles or so, it would open up a very large tract of good timber country, together with some very fair land suitable for settlement, and that with this extension the working of the line would become profitable. lam at the present time making further inquiries into this matter, and will apprise Parliament _of result of that Inquiry before the session closes.

POSSIBLE HARBOURS. For somo time prior to the accession of the present Government to office, important harbour works at Westportand Greymouth were carried out nominally by Boards of local government officials at those places, but really under the direction of the Public Works or Marine Departments, the local officials being mere dummies. The Boards appointed for the purpose of carrying out the Westport and Greymouth Harbour Board Acts were doing so in the letter, while utterly violating them in the spirit, and the Government decided that this state of affairs could not be allowed to continue, and Boards were accordingly reconstituted, and made independent of any Government control except that specially provided for in the Harbour Acts. During the year the Government has lost the services of the late Marino Engineer, Mr C. Y. O'Connor having resigned the office in order to accept a position under the Government of Western Australia. The Government does not intend to make any fresh appointment to this work, as it is considered the duties of the office can very well be combined with those of the Engineer-in-Chiefsbip. It is also proposed, with the idea of effecting economy, to shortly amalgamate the Marine Department, so far, at leasb, as regards the construction and maintenance of lighthouses and harbour works and the inspection of machinery, with the Public Works Department.

ROADS. The total appropriation for the consfcruction and improvement of roads last year was £1.811,112, and the expenditure thereon has been £71,683, while the liabilities existing at the close of the year amounted to £79e396, as foliows:— Class of work. Appropria- Expendi- Luibition. ture. lities. Main roads .. .. £14,130 £9,904 £3,589 Miscellaneous roads and bridges .. 18.733 12,459 4,687 Grants in aid.. .. 3,146 1,586 1,213 Roads to open up Crown lands before sale .. .. 46,570 24,285 24,676 Village special settlements .. 31,033 4,884 16,949 Roads to give access to North Island Main Trunk Railway 40.500 5,848 18.799 roads on goldflelds 27,000 12,687 9,482 Totals .. .. £181,112 £71,633 £79,356 MAIN ROADS. The expenditure on this class of roads has been devoted principally to maintenance purposes, although improvements of a permanent character have been made on some of them as far as the limited means at disposal of the Government would permit. In addition to the liability of £3,590, it is proposed to vote a sum of £11,159 for the current year, as the Government cannot at present hand over all these roads to local bodies to maintain them out of their own funds ; but the time is not far distant when the whole amount required for their keep will have to be provided by the local authorities throughout whose districts they pass. GRAFTS IN AID, The expenditure of £1,556 under bhis class has been incurred wholly to provide works for the "unemployed." From June, ISS9, to July, 1890, the Government was not called upon to provide relief works, but at the latter time it; became necessary fcostarfcworks in Canterbury and Otago, and the extension roads works at Bealey Valley and at Catlin's River were therefore pub in hand. Further works have recently been arranged for on roads near Pahiatua, in Wellington, and at Maruwhenua Pass, in Otago. In view of the success that attended the adoption of the co-operative system on the Ngakawau railway works, it was decided to adopt tbe Fame system with the road works at Bealey. Previously the Government were paying 4s 6d per day to men, and the result was that the State received but a poor return for its pittance, as no interest, of course, was taken in the work. Now the men, 70 in number, are paid so much per chain for the work, and the total cost has not exceeded what it would have been had the work been done by contract, and the men are well satisfied. Men who had been working under the old system, and who were, consequently, noc worth even 4a 6d par day when they were paid, have turned out excellent work, and are, moreover, anxious and eager to do the work.

ROADS TO OPEN UP LANDS BEFORE SALE. It is proposed to ask for a vote of £3,800 for the current year for this purpose, and to supplement this by a vote of £30,000 out of the consolidated fund as announced in the Financial Statement, and also by a loan to the Minister of Lands under the provisions of the Government Loans to Local Bodies Act Amendment Bill. If that Bill becomes law it is expected that this expenditure will largely conduce to bonafide settlement. VILLAGE SPECIAL SETTLEMENT. The expenditure of £4,884 under this class was incurred partly in nrondinjr roads in the vicinity of settlements, and partly m making advances to settlers for improvements effected on their holdings in terms of the regulations under which tb-y

took up their lands. The proposed vote £17,629 for current year is to cover the estimated liabilities for further advances which settlers can claim, and for such local roads as the vote will permit. ROADS TO GIVE ACCESS TO NORTH ISLAND MAIN TRUNK "RAILWAI". Good progress lias been made with fche work on these roads during the year, notwithstanding the exceptionally web weather experienced.' In addition to the wort done, several contracts have been prepared, and will be advertised as soon as funds are voted. During next summer it is expected that some important roads will be completed, affording amongst other advantages direct communication between the terminus of the northern and southern systems of railways. KOADS ON GOLDFIELDS. These roads have been constructed partly out of loan and partly out of consolidated fund. The expenditure of loan on works or this nature last year amounted to £12,587, and the liability on works in progress at the end of March last was £9,432. It is intended to ask the House this year fora total appropriation of £30,550 to complete the works now in progress, and for the construction of road 3 and tracks, and other j works in connection with the development of the mineral resources of the colony, and also for granting assistance to local bodies in tho construction of roads, and minor works on golclfields. PUBLIC BUILDINGS. Further progress has been made with new prisons at "Auckland and Wellington. The stamp printing office at Wellington has been completed, extensive sanitary improvements been made at the Lunatic Asylum at Auckland, and tho Asylum at Sunnyside has bsen restored, while several other'works of a minor character havo been carried out. We ask this year for a total appropriation for public buildings and domains of £132,775, of which amount £52,950 is proposed to be charged to the consolidated fund, and £80,325 to the public works fund.

HARBOUR DEFENCES. Provision was made last year by a vote of £3,000 out of public works fund for material of war from England (partly in fulfilment of contracts entered into by previous Government and partly to complete equipments), as well as for certain miscellaneous charges which could not properly be debated. The expenditure out of this vote during the year amounted to £2,477. The liabilities on 31st March last were £3,710 upon material and miscellaneous charges, which will require to be covered by a vote of loan fund. £1,6C0 of this amount is represented by an award of the Compensation Court for land taken for the torpedo dep6fc at North Shore, Auckland. The value of lands acquired, owing to the exigencies of the negotiations, in excess of actual requirements, and of engine plant, etc., on the works, amounts at a low valuation to about £10,000. This sum is an asset against the cost cf defences, and against liabilities at any date at which work may be discontinued. The total expenditure out of both consolidated and public works funds on harbour defences up to the sist> March iasd, together with liabilities at that date, amount to, in round numbers, £475,000, of which £240,000 represents the cost of material of war from England, and miscellaneous charges connected therewith, and £345,000 the cost of works in the colony. Of this latter sum, about £36,500 represents the cost of land, and the balance, £195,500, the cost of fcrte, batteries, submarine defences, steam launches, and all other charges. The vote proposed for the present year provides only for those works which it is absolutely necessary to carry out to completion in order to put the defences of the harbours in a fairly sound position. In ' this connection Auckland has been specially regarded by the Imperial authorities a3 the possible naval base in these seas, and it is therefore advisable that the colony should, as far as possible, endeavour to justify the selection by providing such efficient defences to the harbour as will enable Her Majoety's ships to confidently take advantage of ifc. The same argument to a large extent applies to Wellington also, and more especially in view of the recent special augmentation of the Australian squadron and the permanent station of war vessels in Nevv Zealand waters.

IMMIGRATION. The acceptance of nominations for paseages was discontinued on the 18th December, 1890, and notice to that effect was published in the " Gazette " of the 18th of the same month. The number of immigrants introduced under the regulation during the year 1890-91 was 147, the total cost of their passages being £1,943, of which amount £1,250 was paid by the nominators in the colouy, and £10 by the immigrants themselves in London. Since the Ist of April last fourteen persons have been provided with passages, and the number of nominations still on the books is forty. TELEGSAPH EXTENSION. In the estimates for the present year's expenditure provision has been made for a second wire from Mohaka to Wairoa, and for extension of the lines from Alakaretu to Ashley Clinton, from Maraekakohe to Hastings, from Grimmerburn to Ewbuin and Naseby, Ricearton to Christchurch, from Geraldine to Woodbury, from Christchurch to Taitapu, from Kawakawa to Towai, from Auckland to Pakuranga, from Karangahake to Waihi, from Wellington to Petone and the Ilutt, from Marton to Hunterville, from Feilding to Awahuri, for the reconstruction of Charleston line, and for an additional wire from Westporb to Reefton. CONCLUSION - . After having enumerated the various railway and other works upon which we purpose to expend moneys available, I feel certain, that I have not given satisfaction, but that dissatisfaction will have arisen, not so much from the manner of distribution as from the fact that the moneys available are so small, and the wants so great. However, the amounts I now propose to he appropriated must be regarded as merely instalments on account, and as moneys are from time to timeavailable from ths conversion of loans and other < sources so our public works cau be ex- \ tended and completed. It is the intention of tho Government to piace the works to be gone on with in hand as expeditiously as possible, so as to get a greater part of the same done in the summer months. Work will thus ba done much cheaper, and by being placed in the market aii once will provide the much-needed employment tor our working population.

The estimates attached to the Public Works Statement contain the following items of Auckland interest: — BOADS AND BRIDGES. W ark worth to Kawakawa, £1,200. Oxford to Rotorua, £600. Tauranga to Napier, via Taupo, £3,000. Raglan to Waipa, £150. Cambridge to Waotu, £100. Raglan Wharf subsidy, £ for £. Sundry roads (Bay of Plenty), £600. Whakatane-Ohape, £200. Oreni Bridge, Whakatane, £300. Roads and bridges in native districts £150. Maketu-Rotorua Road, £100. Otorohanga to Kihikihi, £110. Waikomiti to West Coast, £150. West Coast, Road, £500. Works at Rotorua, £300. Roads to open up Auckland lands before sale, £-10,050. Goldfields roads : Tereofcanga Gorge £800. Cabbage Bay to PorcCharles, £200. Coromandel to Kuaotunu, £200. . Kuaotunu to Mercury Bay, £350 Tiki to Mohikirau, £250-

Waikawau to Manaia, £500. Thames to Manaia, £500, Karangahake and Waihi, £ for £, £500. Waiwawhita Gorge Road, £350. PUBLIC AXD DEPARTMENTAL BUILDINGS, Auckland, £700. Court-house, Mangonui, £300. New Frison, Mount Eden, £2,000. Lunatic Asylum, Auckland, £2,300. Among the larger vot6s are £4,000 grant towards a new hospital afc Dunedin, £60C for the enlargement of the Government Printing Office, and purchase of land £14,000.