D.—l.

IRRIGATION. The continued failure of a large number of irrigators to pay either arrears of rates for past years or the rates due for last season is bringing irrigation farming into disrepute that, from the actual results of irrigation in Central Otago over a good number of years, it does not justly deserve. In the Public Works Statement presented by the Right Hon. J. G. Coates in 1931 figures and graphs were given showing the decided benefits resulting to the Otago Central district from irrigation over the ten-year period from 1920 to 1930. Since the depression, however, there has been a tendency to undervalue the benefits of irrigation because farmers have been in many cases unable to pay their water rates, and in other cases have been unwilling to pay them. This, of course, is what happens to almost every progressive policy in times of financial depression', and irrigation has to take its share with the rest. However, I have faith in the eventual recovery of the schemes now in operation, and do not consider it desirable to abandon proposals for future extension of irrigation. The Government has done everything in reason to assist irrigators to overcome their difficulties. Otago Land Board was commissioned to inquire into cases of hardship, and remitted amounts to the extent of 30 per cent, of outstanding rates ; a rebate of 12|- per cent, was given last year on all rates paid on the due date ; and, finally—in spite of the fact that the Government had determined, as announced in the last Public Works Statement, that no water would be given to those in arrears unless the current year's rates were paid in advance—many cases of hardship were considered and this condition waived. None of these concessions seems to have had much effect, and the debt to the Government now stands at £27,476, or about £5,000 more than it was last year. At the end of last year, through the representations of many concerned in the matter, it was agreed to allow the local Mortgagors Relief Committee to investigate all cases of arrears in water rates. This Committee has reported, and although from the private nature of the inquiry the report must be held as confidential, it is apparent that in many cases the Government is being flouted. It is therefore proposed to take legal action against certain irrigators who have persisted in this attitude, and it is hoped this will have a salutory effect in reducing the amount of outstanding debts of those who are able to pay. The Committee found, of course, that there are a good many irrigators who are quite unable at present to pay their debts, but as long as the Department is satisfied that they are trying to reduce the amount of arrears due, any recommendation from the Committee for leniency will be favourably considered. With regard to the coming season's rates, it is again proposed to give a 12| per cent, rebate to those who pay on the due date, but it is also proposed that no water shall be given to those in arrears unless it is paid for in advance. If better prices prevail for this year's farm-products it is hoped that decided improvements will be seen when next year's Statement is presented. As an indication of the satisfactory results obtained before the present depression so adversely affected the position, I may mention that ten years previous to 1931 over 95 per cent, of the annual water rates were collected. Notwithstanding the present position of unpaid rates, I still propose to take advantage of the assistance towards labour-costs given by the Unemployment Board for irrigation works, and, as will be seen from the estimates, I propose to increase the irrigation vote this year from £70,000 to £80,000. The bulk of the expenditure will be upon the Omakau irrigation scheme, which comprises an area of 8,000 acres of good land in the Upper Manuherikia Valley. There are at present 210 men engaged on this scheme. The rock-fill dam across the Manuherikia River at the Falls, which will give a reservoir of 8,220 acre-feet capacity, is now well under way. Rock is being obtained for the dam from two quarries, one on each side of the river, immediately adjacent to either end of the dam. A tunnel to divert the water of the river during the construction of the dam has been completed. This tunnel is 17 ft. in diameter, and is lined with concrete. The concrete cut-off wall below the dam is practically completed. The construction of the main race, 30 miles in length, is now well advanced, about 70 per cent, of the work being completed. A tunnel 1,088 ft. long has been

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