E.—3.

12

on Eoads, £632,746 125.; on Railways, £3,991,421 14s. 2d.; and Water Races, £214,688 16s. 5d., giving a total expenditure of £4,838,857 2s. 7d. The liabilities on these respective works were, at the same date —Roads, £23,132 2s. 7d.; Railways, £1,620,365 ss. lOd.; and Water Races, £137,072 6s. Id., making a total liability on those works of £1,780,570 14s. 6d., and of expenditure and liabilities £6,619,427 17s. Id. I should add that the greater portion of the expenditure of the liabilities above mentioned, together with the amount of the new services I have laid before you this evening, will be distributed, as stated in my honorable colleague's Financial Statement, over a period of two years. But we have not only the expenditure side of the question before us to-night, we have also the beginning of the return which the larger portion of the expenditure on railways will produce. I have stated that on all the lines opened for traffic a very gratifying profit has been received, more especially when the fragmentary character of some of those lines is taken into account. Now, Sir, Avith the working of those short lengths before us, I think there is no room for any gloomy forebodings as to the financial success of the railway system adopted by the colony. Even at present the easy and certain communication the railways afford has greatly assisted settlement in the country districts, and this constantly growing element of settler-population must furnish a corresponding increase of traffic, as the lines in course of completion open up country hitherto cut off from a market by reason of the cost or difficulty in communicating therewith. If further evidence of the probable paying results of our railway expenditure should be needed, I ask the House to turn to the table appended hereto, as reprinted from the annual report of the Commissioner of Railways in Victoria, for the year 1874. I have had that table reprinted because I think it is calculated to inspire great confidence in the minds of honorable members. It shows that in the year 1874 there were open in the Colony of Victoria 441 miles of railway, the total cost of which was £11,557,484; the average cost per mile was £26,207; the gross receipts from all sources were £851,042; the working expenses were £374,715 ; and the net income was £476,327, being interest at the rate of 4-12 per cent, on the total capital. Now, Sir, we, in New Zealand, shall have 991 miles of railway for the total cost of £6,091,981, or at the rate of about £6,000 per mile. After making full allowance for the difference in the population of the two colonies, and the extra expense involved in the working by our having three or four great centres of traffic instead of one as in Victoria, I cannot but think that honorable members will agree with me in believing that the comparative difference in cost, which is more than at the rate of £20,000 per mile in favour of New Zealand, leaves such a margin as will insure very satisfactory results to the railways in this colony. The House will have already judged from what I have said that the policy of the Government is to complete all the lines now in hand, and get them into thorough working order. It will then be seen where extensions are most wanted to further open up the country. Meanwhile, large as the liability is which has already been incurred for railway construction, I am sure that if the railways are but prudently managed, the result will be such as to make it very easy for succeeding Governments to raise whatever further sums may be required for any railways it can be shown will help the settlement of the country —the one main object which has been kept in view since the commencement of what has been styled the Public Works and Immigration policy. Sir, I have trespassed on the time of the House very largely on two similar occasions in previous years, and I am sure I have to-night sorely tried your patience and that of honorable members, but the importance of the occasion is such as to warrant me in extending my remarks to the length I have done. It now only remains for me to thank you, Sir, and the House, for the consideration you have shown to me.