D.—l

IV

As soon as a suitable length of the railway at the Wairoa Eiver end can be surveyed, it is proposed to put construction in hand at that end and work southwards, so as to meet the construction parties already working from Te Hana northwards. The expenditure on the North Auckland Railway during the previous financial year was stated to be a record, but I am glad to say that last year's expenditure was even larger, having amounted to no less than .£73,042. For the current year a vote of £120,000 is proposed, Honourable members will recollect that during last recess a Eoyal Commission was appointed to inquire as to the best route for the extension of this railway north of McCarroll's Gap, and it is very pleasing to me to be able to announce that the Commission, after going very exhaustively into the matter and taking a large amount of evidence, came to a unanimous conclusion— namely, that the railway should be expeditiously constructed to a junction with the section of the Kawakawa-Hokianga Railway, now in course of construction between Kawakawa and Kaikohe, by a route lying to the westward of the Tangihua Range. The Commissioners report that the route selected traverses throughout its entire length a large area of rich pastoral land of uniform quality capable of carrying a large population when removed from its present isolation. I have already stated that provision will be made in the Railways Authorization Bill to sanction the construction of the first portion of the line recommended by the Commission. HtJNTLY-AwABOA. Honourable members will recollect that the construction of the first section of this railway, three miles in length, was authorized last session. A contract for the large combined road and railway bridge over the Waikato River has been let, and the work is now in progress. The survey of the remainder of the threemiles section has been started so that construction-works thereon can shortly be commenced. It is also proposed to ask Parliament during the present session to authorize a further section of the line, about four miles and a half in length. This extension, besides opening up much valuable coal-bearing country, will be in the direction of an easy saddle which exists towards the Waingaro and Raglan country, so that a further extension of the line in that direction will be practicable at a later date. Only a very small sum came to charge against last year's vote, but for the present year an appropriation of ,£20,000 will be required. Raetihi-Main Trunk. The opening of the North Island Main Trunk Railway has led to a considerable development of the sawmilling industry between Ohakune and Raetihi, and urgent representations have been made to the Government as to the necessity of a branch line of railway from either Ohakune or Rangataua to enable the numerous sawmills to gain access to the railway system, and also to connect the agricultural district of Raetihi with the Trunk line. Provision will accordingly be made in this year's Railways Authorization Bill for the construction of a branch railway for a distance of about nine miles. A vote of £15,000 is included in the-estimates to make a commencement with the work. East Coast Main Trunk. In my last year's Statement I mentioned that a commencement had been made with the section of this railway from Maunganui Bluff (Tauranga) to Te Puke. The formation-works on this section are now nearly finished, rail-laying has been begun, and a locomotive and ballast-wagons have been sent to Tauranga for use in ballasting the line. An extension of the line from Te Puke to Paengaroa was authorized last year, and this section is now being surveyed. As the construction-works will be of an easy character, it will not take very long to complete the formation, and it