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this Statement), and the balance of eighty-eight thousand pounds to Eailway Works, under Part 111. of the Fund (as shown on Table C). The following table shows the state of the Public Works Fund on the 31st March last, and an estimate of how it will stand on the 31st March next if the propo&als which I have now the honour to submit to the House are approved of:—

The expenditure on all works and services throughout the colony under the Public Works Fund up to the 31st March last, including the purchase of the Provincial and District railways, has amounted to a total sum of ,£28,110,081, the principal items being as follows, viz.: Eailways, £15,208,374; Eoads, £3,598,163 ; Immigration, £2,145,150 ; Public Buildings, £1,780,785 ; Purchase of Native Lands, £1,196,479 ; Lighthouses, Harbour-works, and Harbour Defences, £881,818; Defence Purposes generally, £429,719; Telegraph Extension, £606,648; Waterworks on Goldfields, £561,101; Cost of and Discount on raising Loans, &c, £1,021,472; and Departmental, £352,170. DEPAETMBNTAL ADMINISTEATION. On taking charge of the Public Works Department, I expected to have found that the expenses in connection with its administration would have been but small, seeing that our predecessors had advised the abolition of the department, and that their policy in this respect was initiated three years ago. On procuring the returns showing the Head and District offices' administrative expenses, however, I found that they were still very large, and that the department was considerably overmanned in view of the reduced amount of work which it is now called upon to perform. The country having decided upon strict economy being observed in all departments of the Government service, and the Government having determined to administer this department in future on business lines, it became evident that further retrenchment.must be made therein, and the services of some forty officers were accordingly dispensed with, the saving in salaries being over £8,000 per annum, while the compensation payable to the officers leaving amounted to £2,239.

Part I. Part II. Part III. Total. Cash balances on 31st March, 1891 Credit from released sinking funds Probable recoveries during the year £ 110,645 112,000 £ 356,107 £ 251,344 88,000 14,000 i ______ i £ 718,09i 200,001 14,001 222,645 356,107 353,344 982,09i Amount proposed for actual expenditure during 1891-92 ... I 261,426 659,196 200,139 197,631 Estimated cash balances on 31st March, 1892, available for expenditure after that date 22,506 158,476 91,918 | 272,900 Part I. Part II. Part III. Total. £ 110,645 112,000 £ 356,107 £ 251,344 88,000 14,000 £ 718,096 200,000 14,000 Cash balances on 31st March, 1891 Credit from released sinking funds Probable recoveries during the year 222,645 356,107 353,344 932,096 Total appropriation proposed for expenditure during 1891-92, and to cover liabilities at end of year ... 221,419 267,631 348,426 837,476 Estimated balance on 31st March, 1892, available for future appropriation 1,226 88,476 4,918 94,620