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The total expenditure on rail way-works last year amounted to £1,183,033, made up as under : — £ Construction of new lines ... ... ... ... 743,145 Additions to open lines ... ... ... ... 360,926 Wellington-Hutt Railway Duplication ... ... ... 19,511 Railways Improvements Account ... ... ... 60,351 Total ... ... ... ... ... £1,183,933 I will now give a brief account of what has been done on the several railways which have been in hand during the year, and state what is proposed regarding each for the current year. Kaihu Extension. The formation on this line, carried out some years ago by the Kaihu Valley Eailway Company, has all been resurveyed and the line relocated. The widening and completion of the formation is now well in hand, and a start is about to be made with the erection of the bridges. Tenders for the bridges were invited, but the result was not satisfactory, and it has accordingly been decided to carry out the work under the direct control of the Department's Eesident Engineer. The expenditure during last financial year was small—namely, £2,327 ; but for the current year a vote of £15,000 is asked for. Kawakawa-Hokianga. Very satisfactory progress has been made with the works on this line, and ground has been broken at intervals over nearly the whole of the authorized section, and rail-laying at the Kawakawa end has been begun. Such good headway having been made, it will be desirable to have the second section of the line —namely, from Kaikohe to Horeke—authorized during the present session, and provision for this will be made in the Railways Authorization Bill accordingly. The expenditure on the line during last financial year amounted to £13,119, and for the current year a vote of £60,000 is asked for. X A W AX AWA-G EAH AMTOWN. This railway is now open for traffic for the whole distance between Kawakawa and Whangarei. The section between Hukerenui and Towai was opened in May, 1910, and the remainder of the line between Towai and Kawakawa on 13th April last. The extension from Whangarei to deep water at Grahamtown, including the Grahamtown Wharf, has also just been finished, and was handed over to the Railway Department for regular working on the 2nd instant. Last year's expenditure on this railway amounted to £65,936. For the current year a vote of £15,000 is required to meet the expenditure which has taken place since 31st March last, and to provide for a few finishing works. North Auckland. An exceptionally good year's work has been done on this railway. The section between Wellsford and Te Hana, 3 miles 27 chains, was opened for traffic on the 16th May, 1910, and the further section to Kaiwaka, 8 miles 65 chains, is approaching completion, the rails being iiqw laid into the Kaiwaka Station. The Ross Hill Tunnel was also completed and lined during the year. Work on the Otamatea and Bickerstaffe sections has been vigorously proceeded with, and contracts let for the Otamatea Bridge at Young's Point, and for a shipping wharf at the same place. A commencement has been made with the Bickerstaffe Tunnel, and the Maungaturoto Tunnel will shortly be taken in hand. The permanent survey of the line from Maungaturoto to McCarroll's Gap is proceeding and making satisfactory progress. It is proposed to ask Parliament to authorize a further extension of the line—namely, from McCarroll's Gap to the left bank of the Wairoa River, in the Maungaru Survey District—being an additional length of about twenty-five miles. This extension will connect with the Wairoa River, and thus enable water-borne freight to be brought to the railway from a considerable distance.

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