D.— 1.

vast possibilities ahead of us in the matter of the utilisation of our enormous water-powers, which are evidently amongst the colony's greatest natural resources. As a more detailed report seemed to be desirable, so that the country might be apprised of the enormous energy only awaiting the application of intelligence and capital to turn it into a great source of national wealth, much further information has been collected since Mr. Hancock's departure, and a further and more detailed report on the subject has been prepared by Mr. P. S. Hay, M.A., M.lnst.C.E., the Superintending Engineer of the Public Works Department. Mr. Hay accompanied Mr. Hancock during the whole of his tour through the colony, and constantly conferred with him on the subject of our water-powers, and has, in addition, given the subject much personal study. His report, which has now been placed in the hands of honourable members, contains a mass of information of great value, and will convince the most sceptical of the great future that is before this colony as the manufacturing centre of the Pacific. The power shown to be available is so enormous, and can be developed at such a low cost per horse-power, that manufactures and industries at present unthoughtof in New Zealand must before long be established, and their products shipped hence to all parts of Australia and the Pacific Coasts, as well as to more distant lands. So many great and potential schemes lie ready to our hand that we are embarrassed by their number and variety. It therefore becomes a matter of difficulty to determine where to begin in the matter of their utilisation. Mr. Hay shows that the schemes on which he has reported (and many others may, of course, be possible) would develop energy equal to 3,700,000--horse power, about thirty times the amount of power now used in the colony for both tractive and industrial purposes, and considerably in excess of the total fixed steam-power used in the United Kingdom up to 1888, the date of the latest industrial statistics available at the moment. The great bulk of this power is in the South Island, but there is sufficient available in the North Island to meet all present requirements and to provide for considerable future development. The expenditure involved in converting all this waste energy into useful industrial power would, as might be expected, run into millions. It is estimated that the cost of schemes sufficient to displace all the steam, gas, and other plants at present in use in the colony, as well as to provide for the running of all the railways electrically, would amount to about £12,000,000. The information so far obtained, however, though extensive and valuable, is by no means complete, and the reports presented, though able and interesting, are not by any means exhaustive. Much further inquiry yet remains to be made, and further attention will be devoted to the matter with the view of definite proposals being submitted to Parliament. CONCLUSION. Honourable members may rest assured that in allocating the moneys available every consideration has been given to what are considered the most urgent and necessary works. The funds at our disposal should be sufficient to enable the several works to be proceeded with at- a fair rate, and I am satisfied that the result of the current year's work will tend materially to the further development and the continued prosperity of our colony.

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