D.—l.

new residences at Te Teko, Kenana, and Kaiapoi, and additions made to the residences at Pamoana and Whakarewarewa, and to the schools at Hauaroa, Oromahoe, Ruatoke, and Waioweka; and the school buildings at Tapuaeharuru have been moved to a more suitable and central site. For the current year a total appropriation of £103,615 is asked for—-namely, £33,615 under the Consolidated Fund, and £70,000 under the Public Works Fund. Other Buildings. An expenditure of £4,291 took place in connection with our general hospitals, the largest items being grants towards the erection of new buildings at Northern Wairoa and Waihi. Over £6,000 was also expended in connection with the Sanatorium for Consumptives at Cambridge, and about £2,500 on buildings for the Agricultural Department, the principal one being the new Veterinary Laboratory and offices at Wallaceville. For the current year provision is made as under : — Agricultural. —Bone-sterilising works at Auckland and the Bluff; completion of new laboratory, Wallaceville; land for viticultural nursery, Te Mata, &c. General Hosjntals. —Grants for new buildings or additions at Whangarei, Coromandel, Masterton, Picton, Blenheim, Westport, Greymouth, Hokitika, &c. Public Health. —Infectious Diseases Hospital, Auckland; further improvements Cambridge Sanatorium ; and some minor works. LIGHTHOUSES, HARBOUR-WORKS, AND HARBOUR DEFENCES. The Kahurangi Lighthouse was completed, considerable work done at Cape Campbell, and minor works at Cape Maria and Jack's Point, the total expenditure having amounted to £6,206. For the current year votes are provided for carrying on the work at Cape Campbell, and for finishing works at Kahurangi and Jack's Point. The expenditure on harbour-works was very small, having amounted to £1,772 only. For the current year provision is made for improving the channels, Waipu, Onehunga, and Karamea ; new wharves at Mercury Bay, Mokau, and Bruce Bay ; some harbour improvements at Collingwood ; and further protective works at St. Clair. The expenditure under the head of harbour defences has now been brought within very narrow limits—last year's disbursements totalling to only £2,885. For the current year a vote of £4,000 is proposed. UTILISATION OF WATER-POWER. In my last Statement I alluded to the arrival in the colony of Mr. L. M. Hancock, M.A.1.E.E., and stated that he was then engaged in examining some of the most likely sources of power with the view of preparing a report thereon. Mr. Hancock spent eighty-two days in the colony, and was fully occupied in acquiring information during the whole of that time, and consequently had to defer the writing of his report until after his return to America. The report was received in due course, but as it seemed to require amendment in some respects Mr. Hancock was communicated with on the subject before submitting it to Parliament, so that any alterations found necessary therein might be duly made before publication. I expected to receive a reply by the mail which reached here on the 27th September ;" but, as no communication came to hand, it is probable Mr. Hancock was away from San Francisco when my letter arrived there, and we shall therefore have to await the arrival of his explanations. If Mr. Hancock's reply to my letter is not received before the close of the session a copy of his report will be submitted to Parliament without awaiting his revisions. Mr. Hancock's report does not perhaps go into details to the extent that some honourable members might desire, but it clearly shows that there are

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