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of £5,774 was expended on this railway during last financial year, and over £3,600 has been expended during the first half of the current year We ask for a vote of £7,000, which will practically complete this railway to Paeroa. Upon the remaining section between Paeroa and the Thames, a great deal of work has been done, the rails having been laid for four miles and a half at the Thames end, and the formation having been made for a further distance of fifteen miles, or all but a few chains of the whole length. Over £60,000 has already been expended on it, inclusive of the cost of the rails and sleepers, but as several years have passed since any work was done, a portion of it may possibly have to be gone over again. It is estimated that an expenditure of about £30,000 would complete the line from Paeroa to Grahamstown, exclusive of the value of the permanent-way material, and, in view of the rapid development of the goldfields in this part of the colony which is now taking place, the Government consider that it would be decidedly desirable to complete it as soon as funds are available. The completion of this section of the line would connect Auckland and Waikato by rail with the Thames. Paeboa to Waihi. The Government have been approached in respect to the construction, by a syndicate, of a light railway between Paeroa and Waihi, but an alteration of the law would be required to enable the wishes of the parties interested to be complied with. Under these circumstances the Government does not see its way to take this course. If, however, proposals are submitted for the construction of the railway under the existing law they will be considered on their merits. Putaeueu-Eotoeua. As anticipated in my last year's Statement, this line was opened for traffic all the way to Eotorua early m December last Since that date sundry finishing works have been in hand. The expenditure on the work last year amounted to £12,719, and we ask for a vote this year for £2,000 to close accounts in reference to it. Levin to Geeatfoed. An offer has been made for the construction of a loop-line of railway from Levin to Greatford. The matter has been very carefully considered in all its bearings. The proposal was referred to the Eailway Department, and, the report being adverse, the Government have decided that at present they cannot encourage the construction of this railway, nor can they agree to take running powers over the line, as requested. Noeth Island Main Teunk Eailway The formation of the Mokau Section of this railway, 11 miles 9 chains in length, and extending from the Mokau Station, on the completed line, to the commencement of the Poro-o-tarao Tunnel Section is now completed, and the platelaying is in hand. As all the rails, sleepers, and ballast have to be carried for several miles up a rather steep grade, the progress with this work will not be as rapid as it would be if the line were level. The rails are expected to be laid up to and tlirough the tunnel by Ist March next, and the ballasting will probably be completed and the line to the south side of the tunnel ready for traffic by June or July As this line has a number of curves m it, as well as being on a rather steep gradient, a considerable proportion of puriri sleepers is being used in the per-manent-way At the south end of the line works are m progress between Mangaonoho Station (22 miles 40 chains) and 33 miles 40 chains, a considerable portion of the formation being practically finished. The plans of the Makohine Viaduct are now being lithographed, and tenders for its construction will be invited as soon as this process is finished. The expenditure on this railway, including surveys, during last year amounted to £32,964. For the current year we ask for a total appropriation of £35,000, which will have to carry us on to the 30th June next. This vote, with the £1,800 proposed to be voted under the head of "Departmental," will

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