4

D.—-1

routes mentioned, exclusive, as before, oi the purchase of Native lands, and the costs and charges of raising loans, is, in addition to the amount already expended, as follows : — For the North Island Trunk Eailway .... .... £1,673,000 For the Ngaire or Stratford route .... .... £1,166,000 And for the Waitara route .... .... ....£1,341,000 In any case, however, the total sum at present available is only, in round numbers, £434,000. Independently, however, of any question as to whether either of the lines to connect Taranaki with the Main Trunk Eailway should be constructed or not, the Government is of opinion that the works along the central route should be carried at the south end into the Awarua Block —namely, for a distance of 12 miles beyond Hunterville ; and that at the north end the 11 miles to connect the Upper Mokau with the Poro-o-tarao section, together with the platelaying over the tunnel section, and" the construction of a station beyond, should also be undertaken. The estimated cost of these works, exclusive of permanent-way, sleepers, and rolling-stock already provided for, would be respectively £120,000 and £110,000. Total, £230,000. But, after giving the subject very full and careful consideration, the Government is clearly of opinion that, before these works are undertaken, a large area of Native land, suitable for settlement, should be acquired at both ends of the line, and within easy reach of it. The proposal of the Government, therefore, is that £100,000 should be set aside out of the present North Island Trunk Loan for the purchase of these lands, the proceeds of the sale of the said lands, as well as the proceeds of the sale of the one hundred thousand pounds' worth of land already purchased, to be credited to the fund as they accrue ; and, if this proposal is assented to by the House, steps will at once be taken to give effect to it. Preliminary negotiations have, in fact, already been instituted with the view of attaining this end, and it is believed that very satisfactory prices can be arranged, and that by next session such progress can be made in the acquisition of the land at both ends as would warrant the Government in then asking the House to carry on the railway to the extent which I have indicated. If sufficient land is thus acquired between this and next session, the Government is of opinion that these lands should then be opened up byroads, say, from Powhakaroa, (the end of the proposed extension of the railway from the south,) to Eerioi, and from a point 9 miles from Eltham, near Stratford, to Poro-o-tarao; and also, that in order to give access to the large extent of Crown land in the interior of the country, the Wanganui Eiver should be made navigable as far as Taumaranui. Existing Boads. —The road-works already constructed in connection with the North Island Trunk Eailway are in much the same position as they were last year. A dray-road has been partly made in the inland Patea District—from the Upper Eangitikei Crossing to Moawhanga (16 miles), and thence to Turangarere (11 miles). The weekly mail-coach from Napier now runs as far as Moawhanga. There is a good riding-road along the railway-line all the way from Hunterville to the Upper Mokau, a distance of about 170 miles, with a branch (25 miles) from Ohakune to the Wanganui Biver at Pipiriki. The tracks have been kept passable during the year, and improvements have been effected on the Inland Patea Eoad. Purchase of Native Lands. —The particulars as regards the purchase of Native lands out of the loan for the North Island Trunk Eailway will be stated in connection with the purchases of Native lands in the North Island generally, which I shall come to presently. Vote proposed for this Year. —Out of the North Island Trunk Eailway loan as a whole, the vote which is now asked for, in order to meet existing engagements during the current year is £34,201. Woodville-Palmebston . On the Woodville-Palmerston Eailway considerable difficulty has been experienced in the Manawatu Gorge, in getting a solid foundation; the rock which at first sight appeared solid enough, having proved, when opened out, to