D.—l.

IX

When, further, we consider that to complete the various hranch lines now in course of construction will cost over £700,000, and that in addition there is a large annual expenditure upon public buildings, roads, immigration, harbours and lighthouses, gold fields, and telegraph extension, besides some £200,000 required to complete our transactions in Native lands, it will be seen that a loan of ten millions to provide for all these objects would not have been excessive. But the Government believed that to increase our public debt by £1,000,000 per annum was as much as prudence would permit, and also that it was inadvisable to take authority to raise this annual million for a period beyond the time for which this present House is elected, with the exception that it is prepared to recommend the House to make special provision for the construction of the line from Te Awamutu southwards. These considerations determined the Government to limit the amount of the loan for immigration and general public works to three millions only, as announced in the Financial Statement, despite the fact that this sum can only accomplish a part of what it desires to be accomplished; and it has decided to recommend the following apportionment of the loan :— Railways : — Kawakawa, to complete ... ... ... ... £17,500 "Whangarei-Kamo, to complete ... ... ... 7,500 Hamilton-Cambridge, to complete ... ... ... 50,000 Hainilton-Te Aroha, to complete ... ... ... 92,000 Thames-Te Aroha, G-rahamstown to Kopu ... ... 23,000 Main Trunk Line from Te Awamutu Southwards ... ... 10,000 Napier-Woodville, to complete ... ... ... 160,000 Wellington-Woodville, extension from Masterton ... ... 200,000 New Plymouth-Foxton, to complete line of 195 miles ... 75,000 Nelson-Roundell, extension from Belgrove ... ... 40,000 Grey mouth-Reef ton, extension towards Reefton ... ... 100,000 Main Trunk Line through South Island, extension southwards from Blenheim ... ... ... ... 90,000 Completion of Weka Pass and Horsely Downs Section, including Bridge over the Hurunui ... ... ... 75,000 Main Trunk Line, extension northwards ... ... 180,000 Upper Ashburton Branch, extension ... ... ... 15,000 Lincoln-Little River, to complete ... ... ... 30,000 Albury Creek Branch, extension to Burkes Pass ... ... 35,000 Oxford to Sheffield, to complete .. ... ... 12,000 Livingstone Branch, to complete first section ... ... 22,000 Palmerston-Waihemo, to complete ... ... ... 18,000 Catlin's River Branch, to complete Section from Main Line to Port Molyneux Road ... ... ... ... 22,000 Waipahi-Heriot Burn, to complete Section to Swift's Creek ... 12,000 Edendale-Toitois, to complete Section to Mokoreta... ... 13,000 Otago Central, extension ... ... ... ... 300,000 Luuisden-Mararoa Branch, to complete to Centre Hill ... 35,000 Riverton-Orepuki, to complete ... ... ... 16,000 1,650,000 Purchase of Native Lands ... ... .. ... 200,000 Public Buildings ... ... ... ... ... 300,000 Immigration ... ... ... ... ... 200,000 Roads to open up Crown Lands ... ... .. 200,000 Roads and Bridges ... ... ... ... ... 100,000 Roads, Wharves, and Bridges, North of Auckland ... ... 100,000 Gold Fields ... ... ... ... ... 100,000 Harbours ... ... ... '... ... 100,000 Telegraph Extension ... ... ... ... ... 50,000 1,350,000 £3,000,000 Honorable members will observe that towards the construction of the line between Waikato and the railways in the southern part of the North Island only £10,000 has been allocated, whilst the estimated cost of the work is £1,100,000. This is in consequence of the decision arrived at by the Government that, as I have already said, for the construction of this line they would make separate provision. And for this purpose they have come to the conclusion, after careful consideration, to introduce a special Loan Bill for one million, to be solely applied to this purpose as soon as circumstances will permit. In the meantime the £10,000 allocated will enable surveys to be made to determine the best route. With regard to the works proposed generally, it is plain that the expenditure ii—D. 1.