PUBLIC WORKS STATEMENT.

Otago Witness, Issue 1918, 24 August 1888, Page 14

PUBLIC WORKS STATEMENT.

[Br Telegraph.;

Wellington, August 18. The Hon. E. jMITCHELSON, Minister for Public Works, delivered the following Public Works Statement in the House of Representatives this morning : — Mr Speaker, — As the question of the Public Works of the colony is becoming, in comparison with other questions, of less' importance as time goes on, and as I think that this is as it should be, I propose to confine my remarks on the subject this morning within much narrower limits than has been the case hitherto.

BAILWAYS IN COURSE OP CONSTRUCTION AND PROPOSED, INCLUDING ADDITIONS TO OPENED LINES. On the subject of the railways in course of construction and proposed, it will only be necessary to say a very few words. The Government are distinctly of opinion that the present financial position of the colony does not warrant the undertaking of any railway works other than such as will be of an immediately productive character, and we have therefore decided to recommend to Parliament that, with two exceptions only, such amounts should be voted thus far as will enable us to meet the liabilities already incurred in construction, with a small sum over for supervision and contingencies. The two exceptions are the Woodville to Palmerston railway, and the Otago Central railway. On the Woodville to Palmerston railway, in addition to the amount required for existing liabilities, authority will be asked for LlB,OOO, to enable a contract to be let for the Pohanganau bridge ; and for the Otago Central railway, in addition to existing liabilities, an authority for L 35,000 will be asked for, of which L 30.000 is for the completion of the requisite bridge and other works up to aud across the Sutton stream, and the balance of L5OOO for the formation of a portion of the Middlemarch section. The completion of the Woodville to Palmerston railway is considered by the Government to be a work of the utmost importance, and a larger appropriation would now be asked for if it were not that nothing would be gained by undertaking any other works. The Pohanganau bridge has been put in hand. It is proposed, however, to ask for another vote next session for the whole balance of the loan allocation, and to then put all the works in hand which are required for the completion of this railway at such times as will ensure their completion contemporaneously with the Pohanganau bridge and the tunnel contract. It is also intended next year to ask for a vote for the whole balance of the loan allocation for the Otago Central railway, so as to enable the line up to Middlemarch to be completed about two yeais from now. The total length of railway opened on March 31 last was : In the North Island 643 miles, and in the South Island 1108 miles; total, 1751 miles. There were also at that date 164 miles of railway in course of construction, of which 80 were in the North Island and 84 in the South Island. The total expenditure on railways, including cost of provincial lines and purchase of district railways up to March 31 .last, was L 14,466,705, and the liabilities on 31st March •were L 161,577, making in all L.14,728,282. For railways in course of construction as a whole, the amount voted last year was L 460,600, of •which L 365,449 was expended ; and for this year, with liabilities at the end of March last amounting to L 247,951, we propose to ask for votes to the extent of L 338.900, leaving L 829.508 for future appropriation. To proceed now to deal with the existing condition of each several line, as has usually been done in the past, would, I think, under the present circumstances, be simply tedious. That this should be done where works are proposed is no doubt very desirable, in order to enable hon. members who may not all be acquainted with the several localities to understand the existing condition of things at the first step towards realising what is proposed to be undertaken. When nothing is proposed to be done, however (with the two exceptions already mentioned), beyond making progress and final payment on account of the works already contracted for, it seems scarcely necessary to weary the House with a recital of what these lines coHsist of in each several instance. Besides this, too, the interval between this and my last Public Works Statement is so short that the scope of the undertakings on various railways I described has not materially altered in the meantime. It is no doubt desirable, however, for record purposes that a brief summary of the condition of each railway should be embodied in the Public Works Statement as usual. I have therefore had one prepared which will be appended to this Statement as a supplement. There will also be found some remarks which I would wish to bring under the notice of hon. members on the subject of railways generally, retrospective and prospective ; and in the case of all works other than railways I propose to state the details. ADDITIONS TO OPENED LINES. As mentioned in my Statement last session, the expenditure on additions to opened lines has been steadily decreasing and the amount expended during the year ended March 31 last is a further illustration in the same direction. The amounts for the last few years were in round numbers as follows.— lBB4-85, L 140.000; 1885-86, L 91.000; 1886-87, L 80.00 0; ISS7-88, £38,000. This is exclusive of permanent way, and if permanent way be included the amounts are:— For 1884-85, L 103,000 {sic); 1885-86, L 109,000; 1886-87, L 91.00 0; 1887-88, L 41.000 The item of rolling stock 1 have not taken into account. The proportion of rolling stock added •was little, if anything, more than equivalent to the length of the new lines opened during these years. For additions to opened lines, the amount voted last ye^r was L 40.000, of which L 38,277 was expended; and for the present year, with liabilities at the end of March last amounting to L 13,625, we propose to ask for a vote Of L 65.000. Up to about five years ago the undertakings of this character were undoubtedly rather lavish. No separate account had until that time been kept of works done in the shape of additions to the opened proportion of railways as distinct from new extensions. Towards the close of 1883, however, tne matter engaged the serious consideration of Government, and steps were taken to curtail expenditure of this class as much as possible. With that object, accounts were opened in the books of the Public Works department in order to slow exactly, how matters stood, and my successor in office carried this reform a step further in 1884 by bringing down separate estimates and taking separate vouchers for this class of works. By this means it was possible for the first time to realise what was being expended from year to year on such undertakings, and to keep a proper cheek on them. It was not, of course, possible to countermand undertakings v?hich had already been' entered on, but great; care was exercised to avoid any unnecessary expenditure- in the future, and I can vouch for it that certainly no expenditure of this class has recently been undertaken which,

did not promise an immediate return for the capital invested.

The vote proposed for the present "year iri- , eludes the sum of L 25.000 for the purchase of a stuck of permanent way, to be held in hand for working railway requirements. This is intended to be drawn upon from time to time, as may be necessary, to provide for requisite re : newals ; and as each draw is made there will be ■ a corresponding payment out of the votes for working expenses into a suspense fund, and purchases will thereafter be made out of that fu&d to restore the stock of rails. Thus the L 25.000 will always be represented, partly in rails and partly in money. By this arrangement two considerable advantages will be retained: (1) That the Working Railways department will always have an assured stock of permanent way located in the most convenient manner to meet their requirements, which they can draw upon with certainty, and without the inconvenience of cost attending upon transhipments, which have often been requisite in the past ; and (2) that the construction stocks and votes will not be complicated and disarranged by having to provide an indefinite quantity of permanent way at uncertain periods to meet the working railways' requirements. WORKING KAILWATS. As regards the working railways, the annual report of the general manager will be found to give full details of the traffic, revenue, and expenses ; and it is satisfactory to find that the efficient administration of the railways during the past eight years has by gradual improvement in permanent way, structures, appliances, and organisation led to corresponding economy in working. The total expenditure last year was less than that for any of the three preceding years ; and fche average cost of working per mile was the lowest thab it has ever been. For these results there can be no doubt that the Railway department deserves a great deal of credit, as they could only have been brought about by careful organisation and patient supervision extending ever a series of years. Still further improvements are expected during the current year ; but it must not be supposed that economy can be indefinitely extended, as we have already arrived at fairly good results in view of the relative situations of our various lines, the character of the traffic on some of them, and the extent of the requisite renewals. That this is so can be realised from a careful study of Table A, which will be attached to this Statement, and which shows fche results of the working of the several railway systems of the adjoining colonies, compiled from their official reports. This year the railway from Lyttelton to Selwyn will have been opened 21 years ; and on this and others of the older lines rebuilding bridges and structures and paying for new rails and sleepers is a heavy item of expense. Return No. 8 is the annual report on working railways. It shows that the average cost of keeping lines in order is under L7O a mile, apart from the actual rebuilding of structures and bridges, the purchase of new rails and sleepers, and other new works. The same return also shows that the whole cost of maintenance, including such items, is only Ll4l per mile. Further statistics compiled in Table A show that the average gross charge per ton of traffic on New Zealand lines is the lowest in the Australasian colonies, being only 6s lOd. This fact is due, not so much to our mileage rates being low as to the average distance carried being shorter in New Zealand than in the other colonies, in consequence of our numerous chief towns and ports. ' Be the cause what it may, however, the producers in this colony must, as a whole, derive an advantage as compared with producers in other colonies from this low average rate of carriage from the place of production to a port *,and the consumers in the chief towns, as a whole, must have a corresponding advantage, as compared with consumers in other colonies, in the low average rate of carriage I from the place of production to the place of consumption. At the same time, it has to be remembered that our railways cannot make as much net profit out of this lower average rate as the railways of the other colonies can make out of their higher average rate, even though fchey-may have to carry goods somewhat longer distances for the average rate which they get. The reason for this is that the larger proportion of the cost of performing each transaction is a factor irrespective of the distance carried. Nevertheless, if we are not getting so large a revenue as we might do with higher rates, we gain a corresponding advantage in other ways by fostering production and industries of all kinds. We must, however, await the growth of population before we can gain any large increase in traffic. Our railways in many cases have been carried into country without sufficient population, and cannot pay expenses in such places until settlement and production have advanced. In addition to the information regarding railway rates supplied in the reports of the general manager on European and American railways (Parliamentary papers D 2 and D2a of this session), there has also been laid on the table of the House this session a reprint of a very important English Parliamentary paper on the subject of railway rates in the United States of America (vide Parliamentary paper D2b of 1888). These documents are, I think, well worthy of perusal by hon. members as bearing on the question of our general railway policy. ROADS. The next subject is roads of all classes. The length of roads and bridges constructed and improved out of the Public Works Fand last year was: Dray roads— North Island, 147 miles; Middle Island, 105 miles ; total dray roads, 252 miles. Horse roads — North Island, 235 miles; Middle Island, 71 ; total horse roads, 306 miles. Grand total of roads of all classes, 558 miles. Bridges— North Island, 19 bridges, 1337 ft; Middle Island, 7 bridges, 779 ft; total bridge work in both islands— 26 bridges, 2116 ft. The total length of roads constructed and improved iv the colony generally out of Public Works Fund from the commencement of the Public Woiks policy up to the 31st March last was as follows :— Dray roads— North Island, 3381 miles ; Middle Island, 1213; total dray roads, 4594 miles. Horse roads— North Island, 2687 miles; Middle Island, 1197; total horse roads, 3884 miles. Grand, total of roads of all classes, 8478 miles. Bridges— North Island, 630 bridges ; 49,576 ft; Middle Island, 161 bridges, 33,529 ft; total bridge work in both islands— 79l bridges, 83,105 ft. HOADS NOHTH OF AUCKLAND. On tbe roads north of Auckland the expendiditure for the year ended 31* st March last was L 3138, leaving a balance then available out of the amounts provided for this class of works to fche extent of only L 732. Of this sum L4O is due to counties under the grants already tnady , leaving L 692 available for further undertakings.'

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The vote proposed for this year is L3OO, leaving L 432 for next year. MAIN ROADS. Under the bead of " Main roads," the work required to be done, which practically means the ] maintenance of arterial lines of communication passing through uninhabited districts, is being gradually reduced to the lowest possible limits. This is the more necessary as the funds available tor such purposes out of the Public Works loan are very nearly at an end. After next year, therefore, it will be necessary to provide out of the Consolidated Fund for the maintenance of such of these roads as cannot reasonably be ' handed over to the local bodies. Under the votes of last year 12 of these roads were provided for, but in the votes proposed for this year thenum ber is reduced to six. Those still retained are Oxford to Rotorua, Tauranga to Napier, via Taupo, Nelson-Tophouse and Taradale, Nelson to Westport, Greymouth, and Hokitika, the Haast Pass track, and Hokitika-Christcburch. One new item has been added — viz , the main* tenance during' this year of the roads recently constructed along the North Island Trunk railway. The amount voted under this heading last year was L 18.650, of which L 13.756 was expended ; and for this year; with liabilities to the end of March last amounting to L 5311, we ask for a vote of L 15.100, the whole of which, however, will not be expended. MISCELLANEOUS EOADS AND BRIDGES. For miscellaneous roads and bridges the amount voted last year was L 34.500, of which L 25.989 was expended. For this year, with liabilities at the end of March amounting to L 12.642, we propose to ask for a vote of L 34.354. The principal items for which provision is being made this year are : Main road Warkworth to Kawakawa-; completion of roads Bay of Plenty ; restoration of the Mangare bridge ; completion of the road Napier to Murimotu; restoration of the road Lyell to Westport ; bridges on the road from Nelson to Beefton and Greymouch; completion of the road through the Pelorus district and Reai Valley ; continuation of the road from Kaikoura to the Clarence ; improvement of the road from Christchurch to Hokitika ; and bridge over the Clutha at Cromwell. GRANTS IN-AID. Under the Roads and Bridges Construction Act, under the heading of grauis-m-aid and the sub-heading of roads, we voted last j ear the sum of L 10,522, with probable credits to accrue of L3OOO, making a net vote of L 17,520. As against this we expended in all L 8658, and received in the shape of credit L 3206, leaving a net expenditure of L 5452. No uew grants have been made for a long time past, so that the liability of L 3104 existing at the end of March last is the only claim which we have to meet. To cover so much of this liability as will fall due during the current year, after allowing for credits which will come in during the same period, the vofco now proposed to be asked for is L2OOO. SUBSIDIES TO LOCAL BODIES. As regards subsidies to local bodies under the . Local Bodies' Finance and Powers Act, it has now been decided that if these subsidies are to be continued they must be charged to the Consolidated Fund, and no provision has therefore been made for them in the Public Works Estimates of this session. WORK FOR THE UNEMPLOYED. Under the heading " work for the unemployed " a sinn of LIO.OOO was voted last year, and we propose to abk for the same amount for the current year. Of the LlO,OOO voted last year L 5361 was expended, and we had liabilities existing at the end of March amounting to L 1863. The LlO,OOO proposed for this year may possibly be more than will be required, but it is thought better to provide sufficiently for emergencies which may arise. No' money, however, will be expended which is not absolutely required. We have lately been getting fair I value for money expended on this class of work, as the men employed have been fairly good men, and have been engaged wherever practicable on roads in the country districtsi'and on railways and other works of a reproductive character. The work is generally let in piecework contracts. ROADS TO OPEN UP CROWN LANDS BEFORE SALE, ALSO VILLAGE SETTLEMENTS EOADS TO OPJSN i UP CROWN LANDS. I On the very important work of clearing and forming pioneer roads through Crown lands pre- i paratory to settlement, the expenditure last j year was L 61,488, and the vote proposed for this year is L 50,000, leaving L 33.512 for appropriation in succeeding years. VILLAGE SETTLEMENTS. For village homestead settlements last year 'the sum of L 72,200 was allocated under loan funds to meet the then existing engagements ; and of this sum L 12.053 was expended, leaving a balance of L 60,147. Of this sum, however, only about L 45,000 will be required to meet en» gagements now found to be due. This will leave L 15.000 clear, which we propose to ask. Parliament to authorise the Government to expend on new settlements. The vote proposed for this year is L 20,000, of which L 12.000 is required for expenses incurred in locating, and for continuing stipulated advances to the present settlers, and LB.OOO for further extension of the system, if authorised to o be extended as I have suggested. In addition to the expenditure out of funds specially allocated for village settlements, the settlers have also had the advantage of expenditure on roads in their districts out of votes for roads to open up Crown lands before sale amounting to L 10,148. It will be necessary to continue to find similar work in the vicinity of the settlements in order to give the settlers a cha»ce of permanently establish- | ing themselves. Most of the settlements have, however, been now rendered fairly accessible by roads and tracks, and the expenditure from the vote for roads to open up Crown lands for sale cannot therefore continue to be reasonably applied to this purpose. It is proposed, therefore, that a vote be asked for in the Supplementary Estimates to enable assistance to be continued, and in asking for this vote the Minister o^ Lands will make a statement to the House of the conditions of the several settlements and the amount of help that they severally require, j ROADS ON GOLDFIELDS. On account of roads constructed for the de- j velopment of the mining iudustry, the expenditure during the five years ended 31st March last has been in round numbers L 131.000, and of this amount about L 25.000 was expended during last year. The amounts required for the present and following years are L 35,000 and L 11.707 respectively, and this will exhaust the Loan Fund at present available for this class of works. The L 35.000 proposed to be expended this year is required to coyer liabilities at the end of March last amounting to L 13,574, and to complete roads on which a large sum of money has been expended, so that they can be fully utilised. WATERWORKS ON GOLDFIELDS. On account of waterworks on gold fields the expenditure during the five years end Id g March 31 last was in round numbers L 42.000, of which about LlOOO was expended during last year. It is not proposed to undertake any new works of this character, but merely to complete some of the more important works now in hand. The amount required to be provided for the present; yew is L 7,55,, 55, leaving 1*229 for next yw, •

EXPENDITURE OK ROADS OF ALL CLASSES. ' On account of roads of all classes the amount voted out of the Public Works Fund last year was L 263,620, and the amount expended was L 2 19,519. For this year, with liabilities at the end of March last amounting to L 120.670, .we propose to ask for a vote to the extent <f L 168,654. This will leave under the present oan allocations L 151,741, available for appropriation for road works in succeeding years. PtmCHASE OP NATIVE LANDS IN THE NORTH ISLAND GENERALLY. Under the heading of "Purchase of Native Lands in the North Island generally," as distinct from purchases out of the loan for the North Island Trunk railway, I find that during the year ended the 31st March last the purchase of 210,000 acres, on which large sums ' had previously been advanced, was completed, at a total cost of about L 40.000, equivalent to about 3s 9d per acte. This area includes some valuable auriferous land at Cororuandel. The expendi1 ture during last year,' including L 15.072 recovered from the vote of purchase of lands along the North Island Trunk ra'lway, was L 16.587, and the balance remaining for expenditure under loan allocation of last sessiou is L 14.485. Of this amount L9OOO is proposed to be voted for expenditure during the current year, leaving L 5484 for next year. The object of the Government in regard to these land purchases has been, and still is, to use every effort to close up old transactions. Oa many of these in former years large sums have been paid, and it is feared in some cases thrown away. So far as time and opportunity offer, the Native Land Court will be moved to award to the ; Crown an equivalent area of land for the money that has been paid, and it is hoped that substantial recoveries will be made, with the assistance of the legislation proposed during the current session. It is not the intention of Government to undertake new purchases under this heading, except in special cases where it is very desirable in the public interest that lands should be acquired, and where they oan ba obtained at a reasonable rate along the North Island Trunk railway Coming now to the land purchases out of the loan for the North Island Trunk Railway, we completed during last year the purchase of 100,000 acres at a total cost of LBOOO, or about Is 7d per acre. The expenditure during the year, exclusive of L 150.072, repaid to the general Land Purchase Fund to recoup former advances, was L 9057. Of the LlOO.OOO taken from the North Island Main Trunk railway loan, aud set apart for the purchase of Native lands along :that line, the sum of L 5571 still remains available, and it is proposed to be voted for expenditure during the current year ; and by the 31st March next, as the result of the expenditure of this LIOO.OOO, it is estimated that a total area of 700,000 acres will have been acquired. This would mean an average price per acre of about 2s lOd. No further land purchases along the line of the railway can with advantage be gone on with at present ; but we propose next session to ask for authority to devote a further sum of L 50.000 out of the North Island Trunk railway loan to this purpose, and if this is approved of by the House further desirable land purchases can then probably be made. By that time it is hoped that the title to the land in the Waik&to district along the line of railway will be settled. The line runs through the block known as the Rohaepohae for 90 miles. This block, which contains 2,638,000 acres, has been before the Land Court for two years, but the settlement of the title has been delayed from time to time by unavoidable adjournments. For some months past the court has, however, been making good progress with the larger subdivisions, and it is expected that some portions adjacent to the line may soon be in a position to be dealt with.' IMMIGRATION. As regards immigration, as hon. members are already aware, the acceptance of nominations within the colony for passages was stopped on the 22nd December 1887. After that date no nominations were entertained, and the services of the immigration officers and their staffs have been dispensed with. Since the date up to which information was given in my last Public Works Statement— namely, the 30th November 1887 — 623 souls have arrived who had been nominated for passages prior to 22nd December, and towards the cost of whose passages the sum of L 5522 has been contributed by their friends in^the colony. Since the same date 47 small farmers have also arrived with a known capital of L 5630. The total number of this class introduced since the commencement of the system on the 28th September 1885 is 397, with a known capital of L 43,785. The Agent-general, on the 17th May, informed all persons who had < been nominated for passages that their nomination would lapse unless taken advantage of ' within three months from that date. The outstanding liabilities in the colony and in London on March 31, 1888, including cost of passage and incidental expenses, come to L 800 0; some small contingencies in connection therewith will amount L 11 0; and a contribution proposed to be made towards the passages of persons in England who are separated from their families here will amount to about Llooo— making in all L9llO, for which we now propose to a3k a vote. The total number of immigrants, exclusive of small farmers, introduced since the inauguration of the immigration scheme by the Colonial Government is 114,576. Details of nationalities and classes of immigrants introduced up toApril 30 last will be found in Parliamentary papers D 3,1888., 1888. TELEGRAPH EXTENSION. On account of telegraph and telephone extension the amount expended last year was L 22.984, and the amount proposed to be. asked for this year is L 20,000, leaving L 8370 for future appropriation. Of the expenditure last year L 13.029 was on account of telephone exchanges throughout the colony generally, and was principally for material imported for the purpose. The total capital cost* of these exchanges amounted on 31st March 1888 to L 53,288. The work of the year consisted principally of bringing a large number of small villages into connection with the telegraph system by means of telephones. As set forth in table No. 8 accompanying the statement, the most costly of these telephone connections were to Patumanoe, Mangamahoe, Tologo Bay. Kumerau, Clevedon, Cambrian, Blackstone Hill, and Nightcaps. During last year also a telephone exchange was established at Blenheim. The only important telegraph extension work done during last year was the erection of the fifth wire on the main north line between Woodville, Tahoraite, and Waipukurau, this being necessary for the proper despatch of the large business on the North Island wires. The further extensions provided for in the Estimates for the present year include the erection of a telephone exchange at Grey mouth, and also the completicn of the Kai.para Heads line and the line from Waipa to Para Bay. , ' PUBLIC BUILDINGS. The principal public buildings in course of erection since the last Public Works Statement was made have been the construction of a new printing office, erection of a post office, the con-

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struction of the prison works iv Wellington, the. construction of new departmental buildings, additions to lunatic asylum and continuation of prison' works in Auckland, and addition to the lunatic asylum in Christchurch. The amount voted for buildings last year was L 109,105, of which L 90,529 was expended : and for the year, with liabilities at the end of March last amounting to L 29.610, we propose to ask for a vote of L 52.244. Thi« will leave a balance of L 69.637 of loan allocations for appropriation in succeding years. As 'promised in my Statement of last year, the cost of the re-erection of the Wellington Post Office has been provided for out of the Consolidated _Fund, as has also the cost, of school buildings for this year, with the exception of a small amount for liabilities existing on the 31st March last. A beginning has also been made towards gradually throwing the whole cost of public buildings on the Consolidated Fund by providing out of that fund this year for the construction of some of the ordinay departmental buildings required. ' In addition to school buildings, lighthouses, and harbour works, the amount voted last year was L 4300, of which L 2866 was expended. For this" year we propose to ask for* vote of L 3750, leaving L 1684 for next year. The amounts thus proposed to be asked tor this year and next year, with the exception of LlOO for the survey of Kaikoura lighthouse, and Ll5O for sundries and contingencies, are all for the Cuvier Island lighthouse, that being the only work of the kind for which provision was made in the loan allocation last year. The necessity of erecting a lighthouse on Stephen's Island to reduce the danger of navigating Cook Strait, and of placing a coast light at the Kidnappers, on the Bast Coast, has engaged the attention of Government; but as both works are of a costly character, it has been decided to allow them to stand over for further consideration. HARBOUR WORKS. No provision is made in this year's Estimates, the loan allocation for that class of work having been exhausted by the vote last year. HARBOUR DEFENCES. Coming now to- the subject of harbour defences, I find that the total cost of the harbour defences of New Zealand up to March 31, 1888, has been L 392.286, of which L 52.231 was spent on 64-pounder and 7 i ton muzzle-loading guns, torpedo boats, and reports by military engineer, &c, prior to the war scare of 1885 ; leaving in round numbers L 340,000 as the total cost on all accounts of land defences and submarine defences, equipments, armaments, and material of war since the actual construction of the defence" works began. ■ The vote for the year 1887-88 was LBO.OOO, and the expenditure L 73,459, with liabilities at end of year L 36,42 2; of which L 3145 was for works, and L 33.277 for war material. Of the total sum of LlBO,OOO provided for harbour defences in the loan allocations of last session there remained on 31st March last an unexpended balance of L 56,541, which is proposed to be expended during the present jear in discharging the liabilities already referred to and carrying on the works. It is hoped that by the end of March next most of the yet unmounted new guns will be replaced with magazines and submarine depots, improved so that both the land aud submarine defences may be effective against any sudden emergency. To complete the works, however, to such a stage as would enable all the guns and other materials of war obtained at large expense from England to be barely utilised would (making allowance for prison labour) entail an expenditure of about L9OOO, in addition to the amount already pro-* vided ; while to place them in a state of fairly complete equipment would entail a further expenditure of about L2OOO. That would be in all about Lll,ooo in excess of the amount already provided for. In the carrying out of these works during the past year the Government have had the advantage of General Schaw's reports and advice as to the defences, and of his generous co-operation towards their improve* ment. HATES ON NATIVE LANDS. For rates on Native lands the amount required as an advance for the payments which will fall due during the curreut year is L 11.500, and a vote for that sum will be asked for. Beyond this amount no further provision is intended to be made for these rates out of Public Works Fund, the intention being to provide out of the Con* solidated Fund for such further amounts as may be decided to be expended. The balance remaining out of the loan allocation for this purpose has therefore been allocated to other services. THERMAL SPRINGS. As regards our 'thermal springs, it is gratifying to observe that they are rapidly becoming of national importance as a resort for invalids from all parts. The waterworks at Rotorua have been completed and are in good order. An unlimited supply of water is thus available for the baths and also for the ornamental fountains. Hydrants have been provided in connection with the pavilion and other Government buildings as safeguards against fire. At the Hanmer Plains the baths and ornamental grounds are reported to be in a very satisfactory condition, and the increase in the number of visitors is so great that an early addition to the number of baths will be necessary. At Te Aroha the number of visitors attracted to the Spa has so increased as to have had an appreciable effect on the railway traffic. Details as to the extent of which the various baths are beiug used, and other information of a like character, will be found in the Crown Lands Report. The 1 loan allocation for the thermal springs last session was L 4500, to which L5OO is proposed to be added, making in all L5OOO. Of this amount L 3999 was expended last year, leaving LlOOl for the current year. EXPENDITURE ON PUBLIC WORKS ON ACCOUNT OF PUBLIC WORKS OF ALL CLASSES. The amount voted last session was L 1,128,077,, 128,077, of which L 966.159 was expended during the year. Of the amount thus expended, L 448.854 was under part 1 of the fund for the various works and services therein provided for; L 152.315 was under part 2 of the fund for the North Island Trunk railway, inoluding road works and Native land purchase in connection therewith, and 1372,990 was under part 3 of the fund on account joL the various railways comprised therein. The state of the Public Works Fund as from March 1 last is constituted as follows :— Part I, comprising immigration, some small items of railways, and road? of all classes (except roads along the North Island Trunk, railway), waterworks on goldfieldSi purchase of Native lands in the North Island (except lands along the North Island Trunk railway), telegraph extension, public buildings, lighthoaseB,ha'"bonr works and harbour defences, rates on Native lands, and thermal springs. In part 1 of the fund we had at- March 31 last the sum of L 50 A 392, and to this there is being added L 87.398, to which this fund js entitled under section 31 of the Government Loans to Local Bodies Act, L 14.336 to be recovered from the Westport Harbour Board, and L 500.000 of the loan recently floated, making in all L 652.126. The amount proposed to be expended during the present year (including L 205.323 liabilities at the end of March last) is L 374.555, which will leave L 277.571 available for appropriation in succeeding years. Part 2 is for the North IsUnd Trunk railway, including road works and Native lands puf* flhase in connection therewith. Taking credit for the Li;OQO,QOQ loao recently flowed, *?«

•

amount available for expenditure from 31st March last was L 522,000, and as against this (with liabilities at the end of March amounting to L 75,904) we propose to expend L 135.711 during the present year, leaving L 386.289 for appropriation in succeeding years. Part 3is for railway works generally with the exception of the North Island Trunk railway and small items of railways included under Parts 1 and 3 of the fund. Taking credit for the additional L500,G00 recently floated, we had available for expenditure from 3lßt March last the sum of L 896.245, and as against this (with liabilities at the end of March amounting to L 190.568) we propose to expend during the present year the sum of L 352.541, leaving L 543,704 for appropriation in succeeding years.

THE PUBLIC WORKS FOND AS A WHOLE.

We therefore had available for expenditure from 31st March last the sum of L 270.471, and as against this (with liabilities at the end of March last amounting in all to L 471,695) we propose to expend during the present year the sum of L 862.807, leaving L 1,207,564 availabb for appropriation in succeeding years. As regards the amounts which I have just stated as proposed to be expended during the present year, I should, however, explain that these are the amounts for which we propose to ask for votes in the first column of the appropriations ; but it is not probable that quite so much will iv any case be spent. In estimating the amount required for each work it is necessary to provide for a maximum amount of liabilities wkich may accrue under it. But this maximum is generally only reached in practice in very few instances. The amount provided as a whole, therefore, usually turns out to be considerably greater than is actually requisite, and on this basis I estimate that the actual total expenditure during the current year may probably be kept within L 750.000. That is only — in round numbers — about L 280,000 in excess of the liabilities exi&tting at the end of March last, and in this L 280,000 there is included the probable costs and charges of raising the two million loan recently floated amounting to about L 200,000. If these anticipations as to probable actual expenditure are fulfilled, the amount remaining unexpended at the end of March next will be about L 132.000.

The condition of the various funds in'relation to the several works and services therein provided for will be found in detail in Tables B, C, and D, which will be attached to this Statement. From Table Bof these it will be seen that some readjustments are proposed in the allocations recommended last session for the various classes of works under part 1 of the fund. The majority of these readjustments are unimportant, as they consist merely of taking sums from classes and work from which they can be spared, and adding them to other classes where' they are more required.

But with regard to an item of L 70.000 which was originally intended for immigration, but which was " unallocated " in the loan of last session, it may be necessary to give some explanation. As lion, members are aware, a considerable expenditure and liabilities had already been incurred in respect to immigration before the House decided last session that immigration was to cease. A sum of L 25,000 out of the L 70.000 unallotted had therefore to be allocated to this purpose, having been found to be insufficient. Only one-half, however, of this LIO.OOO is due to the L 500,000 of loan belonging to Part 1 of the fund, the remainder being due 'to the L 500.000 belonging to Part 3. But 'as these funds under Part 3 are absolutely tied up by the Loan Act to certain fixed item", nothing more could be got out of them for this purpose, and the whole of the additional amount required had consequently to be provided for ■out of Part 1. The amount under the heading of " Unallotted" has therefore been reduced to L 35.000 in the case of Part 2 of the fund, the details of which are shown in Table C. A similar readjustment has been made in respect to roads and bridges, also a readjustment to the extent of L10,0^) on account of charges and expenses of raising the loan, for the same reason as has been already explained in the case of Parts 1 and 3— viz , that the amount previously allotted was insufficient. Still it shows the details of the allocations under Part 3 of the fund, in which no alterations have been made; and Table E shows the same as last year the total expenditure under all classes of works for several years back in comparison with the total expenditure proposed and the amount which will then be available for future appropriations.

PROPOSAL TO DO AWAY WITH THE PUBLIC WORKS DEPARTMENT.

As indicated in the Financial Statement of my colleague, the Colonial Treasurer, the Government propose during the recess to take steps towards the early abolition of the Public Works department.

RAILWAY COMMISSIONERS.

On the subject of the chief commissioner for railways, communications with the Agentgeneral have not yet been brought to a close, but we hope to hear fully from him very shortly, and will then set up tho commissioner without delay. I have now, Sir, come to THE END

of my Statement, and I would wish to thank tho House for the patient hearing which it has vouchsafed. Whilst my task has not been the pleasant one of proposing an active prosecution of public undertakings — such as a condition of general prosperity would demand and justify — I have at least the satisfaction of feeling that our proposals are founded on a careful and well considered view of the necessity of the under • takings proposed ; and I am at the same time confident that one means of securing a sound condition of affairs will be found in bringing the Public Works expenditure within reasonable compass and conducting it on a scale in proportion to the means of the colony. The usual reports by the several permanent officers of the department nill be attached to this Statement, and also the usual tables showing the cost of works and the result of the working of the railways.