E.—l

I shall now shortly allude to the Department of Working Railways. In the Middle Island, during the past year, 59 additional miles of railway have been opened for traffic, making a total, at 30th June last, of 809 miles, the total cost of construction of which amounts to £5,757,188. The gross receipts have been £601,281 6s. Id. The working charges and maintenance have been £428,498 19s. Id., leaving a balance of £172,682 7s. available towards payment of interest on cost of construction, being at the rate of 3 per cent, for the year. The number of passengers carried during the year was 2,018,871. I may here observe that several causes have contributed to diminish considerably the profits of the year —namely, the great deficiency in the grain crop of Canterbury, the serious loss which accrued from floods, and the want of rolling-stock sufficient to meet the enormous traffic which is being continuously developed. I am glad to say, however, that the last-named evil is being successfully diminished, and that the further risk from flood damage is being lessened by the protective and other works which have been constructed during the year. In the North Island, during the past year, 27 additional miles have been opened for traffic, making a total on the 30th June last of 336 miles; the total cost of construction of which amounts to £2,300,000. The gross receipts have been £156,762 Is. 4d., and the working charges and maintenance £116,879 15s. lid.; leaving a balance of £39,935 6s. 2d. available towards payment of interest and cost of construction, being at the rate of nearly If per cent, for the year. The number of passengers carried during the year was 703,869. I feel assured that these results must be regarded as satisfactory, and cannot but afford matter for congratulation to us all. They augur well, in my opinion, as to what may be looked forward to as population increases, and they amply justify the additional loan which it has been resolved to raise, in order to the prosecution of those new railway works which have been commenced during the past year—railways which I feel persuaded will upon the whole be not only more productive than, but Avill greatly increase the traffic upon, those lines which have been already constructed. I may say that it was the intention of the Government to have applied for power to lay off small-farm settlements along the various new lines, and to dispose of the same upon such terms as might be deemed best to secure the permanent location on the soil of those employed in the construction of the works. I venture to hope that no time may be lost, after the assembling of the new Parliament, in legislating in this direction. I could have wished to have gone more fully into what I conceive to be the best course of action for the future in respect of our Public Works and Railway policy ; as it is, the position in which the Government has been placed in this House precludes me from so doing. I should hope, however, that the House will agree with me in thinking that, in the public interest, it is well that the Loan Bill should be accompanied with an authoritative and condensed statement showing the results of the Railway policy for the past year, such as I have now endeavoured to submit—a statement which will be found to be fully borne out by the various official reports and returns for the year. I have carefully abstained from saying anything debatable; and shall conclude by expressing a hope that, into whatever hands the future administration of the Public Works Department may fall, the Railway policy which I had the honor to enunciate last session may be earnestly and vigorously prosecuted.

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