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supervision of the Marine Department, it was considered advisable to again place the administration of the Inspection of Machinery Act under that department, so as to avoid the Inspectors being under dual control. The change took place at the commencement of the current financial year. I also regret to have to record the retirement and subsequent decease of Mr. J. A. McArthur, the late Chief Clerk of the department. Mr. McArthur's service under the Government extended over a period of more than thirty-six years, over twenty-three years having been in the Public Works Department. The retirement of so old and valued a public servant has been a great loss to the staff of the department. RAILWAYS UNDER CONSTRUCTION. I will now briefly review the operations of the past year in the matter of railway-construction. Kamo-Kawakawa. The section of this line between Whakapara and Waiotu is now practically completed, but no buildings have been erected or other terminal facilities provided at Waiotu, as upon a full consideration of the matter the Government has decided to ask authority to extend this line to the Hukerenui Township. This extension, which was petitioned for last session, is under two miles in length, and will not be expensive to construct, and will carry the line to a more convenient point. All the landowners along the route have agreed to convey the land required for the line to the Crown free of charge. The expenditure on this line last year amounted to £6,494, and the liabilities existing at the close of the year to a further sum of £1,554. The vote proposed for the current year is £7,000. Several petitions have been presented to Parliament praying for an extension of the line southwards from Kawakawa, and the Bay of Islands County Council is strongly urgrng that the survey of the proposed extension be undertaken immediately. As soon as an Engineer can be spared for the work, this survey will be put in hand, and I hope to be able to lay the result before Parliament next session. Helensville Noethwaeds. The formation of the Tahekeroa Section of this railway has been started, in pursuance of the vote for the work passed last session. The works are now proceeding satisfactorily, and will make still better progress as the weather improves. The expenditure on this line last year amounted to £4,047. The vote proposed for the current year is £7,000. Geahamstown-Te Aeoha. Construction-works have proceeded satisfactorily on this line throughout the year. The formation is now complete right through, the rail-laying extends to within about two miles of Grahamstown, ballasting is proceeding as expeditiously as possible, and the construction of the station-buildings has been authorised. lam in hopes that the whole line will be available for passenger traffic by Christmas, or early in the neAV year, though it is probable that considerable finishing-work will remain to be done after that date. The expenditure on the line last year amounted to £15,565. The vote proposed for the current year is £25,000, which is required to meet liabilities and to complete the line to Grahamstown, including the cost of station-buildings, &c. Paeeoa-Waihi. I mentioned in my last year's Statement that the survey for the projected line between Paeroa and Waihi was in hand. It has since been completed., and shows that a fairly good line can be obtained. The length would be about twelve miles and a half, and the probable cost, constructed according to present standards, but exclusive of rollmg-stock, about £80,000. The only heavy piece of work on the line is the construction of a tunnel 1,188 yards long at Karanga-