D.—3.

The estimated capital costs are as follow : —

The members of the Railways Board left Wellington for Gisborne on Tuesday, the 7th July, accompanied by the General Manager. At Palmerston North they were joined by Mr. W. D. Lysnar, M.P., who accompanied them throughout the visit. They were joined at Napier by officers of the Public Works and Lands Departments. The party left Napier for Gisborne the following morning, being met at Wairoa by the Chairman of the Wairoa County Council and by the Mayor of Wairoa, who made representations on behalf of the Wairoa district. The Board visited Waikokopu, where the Public Works Department controls a wharf in conjunction with the railway from Wairoa to Waikokopu, which that Department also operates. From Waikokopu the Board travelled approximately 14 miles up the coastal road which follows the proposed route of the railway, and, returning to Waikokopu, resumed the journey via Nuhaka and Morere to Gisborne, where it was met by Mr. K. S. Williams, M.P., the Mayor of Gisborne, the Commissioner of Crown Lands, Gisborne, and representatives of local interests. On Thursday, the 9th July, the local representatives conducted the Board on a tour of inspection of the district in the Gisborne locality, travelling in the morning to Tolaga Bay, where the Board was met by representatives of the local authorities, and spending the afternoon inspecting portions of the district round Gisborne. The Gisborne Section at present comprises the line from Gisborne to Motuhora, 48 miles 38 chains, the branch line from Makaraka (3 miles 12 chains from Gisborne) to Ngatapa, a distance of 11 miles 33 chains, having been closed as from the 31st March last. The total capital cost of the Gisborne Section, including the Ngatapa line, was £848,284. The capital cost of the closed line was £167,430. The line from Gisborne to Motuhora was originally intended to be carried on through to Opotiki, ultimately joining up with the open line at Taneatua. The line to Ngatapa was to be continued to Wairoa as the connecting-link in the East Coast line to Napier. The line was opened from Gisborne to Kaitaratahi (13 miles) in 1902, and to Motuhora in 1917, and from Makaraka to Ngatapa in 1924. The line has not been proceeded with beyond Motuhora. A considerable amount of construction was done south of Ngatapa, involving an expenditure of £118,406 on the Ngatapa Section southwards and £20,685 on the Wairoa Section northwards. The nature of the country caused the route to be abandoned in favour of the Gisborne-Waikokopu route. With this decision the necessity for maintaining the Ngatapa Section disappeared, and this section of line was accordingly closed as mentioned above. Much information was furnished to the Board orally and in written reports and statements bearing on the question of the railway between Napier and Gisborne. Dealing with the various sections of the line, the position is as follows : — (1) Napier-Putorino. (Open line, damaged by earthquake. 38 miles 61 chains.) Capital cost .. .. .. .. .. £1,039,000 Estimated cost of repairs .. .. . . £45. 000 Putorino is the present terminus of the Napier-Wairoa line, the first section of which, Napier to Eskdale, 11 miles 67 chains, was opened for traffic in 1923, and on

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Expended to 31st Additional Cost _ , , „ , I „ March, 1931. to complete. Total Cost ' ! Cost P er Mlle - £ £ £ £ Napier-Putorino .. .. 1,039,000 45,000 1,084,000 27 795 Putonno-Wairoa .. .. 1,173,845 258,313 1,432,158 42 122 Wairoa-Waikokopu .. .. 616,559 37,170 653,729 26' 149 W aikokopu-Gisborne .. 571,438 1,186,180 1,757,618 48^823 £3,400,842 £1,526,663 £4,927,505 £37,049