it will be seen that there are greater difficulties in the way of railway operations in that part of the colony than probably were anticipated. Kawakawa Extension. —The work of surveying this line has been very difficult and tedious. It is now ready for inviting tenders, and only waits the fulfilment by the Bay of Islands Coal Company of certain conditions entered into on their part in order to be put in hand. 'Wellington to Foxton. —This line is part of the main trunk line from Wellington to the Waikato, via the West Coast. The land through which it passes is now being purchased by the Government, and at least one million of acres contiguous to it will be shortly available for settlement purposes. Considerable pains have been bestowed upon ascertaining the most suitable route from Wellington to Waikanae, this being the most difficult and expensive portion of the line. It has been found that the best outlet from Wellington is by Kaiwarawara and Johnsonville, by which route a very fair grade can be secured. The working plans are now finished, and tenders can be called for the works almost immediately. The total sum expended on railway construction works during the past year has been — £ s. d. In the North Island ... ... ... ... 343,861 7 1 In the Middle Island ... ... ... ... 462,812 3 4 £806.673 10 5 Surveys not included in above, being charged to Votes 81 and 82 12,607 3 8 Total ... ... ... £819,280 14 1 The total contract liabilities on railway construction works on 30th June last were— £ 8. d. In the North Island ... ... ... ... 537,951 2 5 In the Middle Island ... ... ... ... 539,580 14 8 Kails not yet arrived or apportioned ... ... 100,000 0 0 £1,177,531 17 1 Surveys not included in above, being charged to Votes 81 and 82 1,308 3 3 Total ... ... ... £1,178,840 0 4 Since 30th June additional tenders have been let— £ s. d. In the North Island ... ... ... ... 12,202 6 10 In the Middle Island ... ... ... ... 24,977 18 10 It may be interesting to show the amount of expenditure and obligations incurred since 30th June, 1878, on railways works in the different divisions of the colony: —

2

2

Expenditure, 1878-79. Liabilities on 30th June, 1879. North Island. £ s. d. 83,395 19 8 48,167 11 0 35,679 15 10 176,618 0 7 £ s. d. 231,586 9 4 28,626 15 8 34,776 3 7 242,961 13 10 mckland lawke's Bay 'aranaki Vellington Total £343,861 7 1 £537,951 2 5 Middle Island. )tago !anterbury Vestland lelson larlborough 223,607 13 9 177,314 14 2 553 1 2 57,337 6 10 3,999 7 5 320,494 8 172,966 13 4,935 19 *32,229 10 8,954 2 0 7 9 8 8 Total £462,812 3 1 £539,580 14 8 * To this Bum of £32,229 10s. 8il. a further sum of £12,000 may be added to Stillwater, tenders for which arc about to be dealt with. respect of a section o: railway, Brunnerton