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It has been considered prudent to incur a further liability on the Waitaki Bridge of some £600, to provide water supply as a means of protection from fire. The bridge has been open for traffic for some months, and is being worked, together with the railway to Oamaru, by the Provincial authorities of Otago. lam advised that the railway between Oamaru and Moeraki will be completed and ready for traffic in about two months. The works south of Moeraki are under contract all through to Dunedin, with the exception of a length of 9 miles at Waikouaiti. It is proposed to let the formation on this section in time to be completed as soon as the Blueskin contract is finished. The works are progressing favourably. The compensation for land taken has also on this length, as, indeed, all through the district, been very heavy; and although every effort has been made to keep the claims down, they have nevertheless exceeded very largely the highest estimates made of them. An unexpected contingency has arisen in connection with all the tunnels in this district, inasmuch as it has been found necessary to line them all with brickwork, involving a further appropriation hereafter of some £36,000. The remarks I have made in reference to station accommodation in the Canterbury district apply to this district, as also with respect to further supplies of rolling stock. I visited Balclutha during the recess, and the result of the various inquiries I made was, that the main line oright to be taken in the direction selected by the Engineer-in-Chief; and I gave him instructions to have the line set out for contract in accordance therewith. The works on the section south of Clinton are not likely to be completed before the end of the year. The works on the Westport and Mount Eochfort Coal Railway are progressing satisfactorily. A contract for the works necessary for loading coal, protective works, and the requisite station accommodation has been let in excess of the appropriation already made; but there are conditions attached which enable the Government, in the event of the funds not being voted, to stop the contract without being liable for damages. The Government consider this work should be continued for the present as a colonial work, and, if this course is taken, further votes will have to be asked for year by year. There is a fair prospect of this coal field being practically opened up, and by the time the railway is in a position to carry coal in large quantities more than one mine will be in full working order. The Report of the Royal Commission appointed to inquire into the question of the future dealing with the Colliery Reserve at Westport has been laid on the table, and is in the hands of honorable members. I only now refer to it to express my concurrence in the decision, and the appreciation by the Government of the pains taken to make so exhaustive an inquiry as the Commissioners did in this case. A very considerable revenue will hereafter be derivable from this reserve. The Greymouth and Brunner Railway has been open for traffic for some months past. It is supposed the coal trade will commence about the Ist of September next, as by that date the bridge over the River Grey will be completed. The Government consider the works at Greymouth, as in the case at Westport, should be dealt with by the colony, at all events for the present, and the more so as they are really a part of the railway. An arrangement has been entered into between the Government and the Corporation of Greymouth, that the latter body should hand over the wharf now owned by them to the Government, that they should be paid the present value thereof, and, on condition of their giving up all the river frontage for the railway works and their rights to levy tolls, &c, that the balance due by the Corporation to the Government of the moneys lent to them in the year 1872 should be remitted. To enable the Government to complete this transaction and to continue the work, a further vote of £25,000 will be asked beyond previous appropriations,— pending the result of which the Government are receiving the wharf dues and keeping a separate account of them.