D.—l

The question of legislation to provide comprehensive measures for rivercontrol throughout the Dominion has received further consideration. Draft proposals were prepared by my Department, which expressed the view that the important matter of soil-conservation should be dealt with in conjunction with river-control. In March last this House appointed a Select Committee to inquire into and report upon such questions relating to the protection of property from damage by floods and erosion and to the control of rivers generally as might be referred to it by the Government, and the Department's draft proposals have been under examination by that Committee. The Committee has received and considered representations made by local authorities and other interested parties and has submitted important recommendations to the Government. As a result of these recommendations legislation is being drafted for submission to honourable members. It is realized that after the war a large number of men will be returning from overseas service who will not be able to resume immediately their former occupations or who will require to be specially trained in vocations best suited to their individual circumstances. In the interim other work may have to be provided for some of these men, and with this object in view careful consideration is being given to the selection of national development works where they could be employed pending their rehabilitation in normal civil occupations. A comprehensive schedule of important post-war projects has been compiled, including provision for flood-control and soil-conservation measures, the improvement of access and transport facilities, and the resumption of construction programmes which have been suspended during the war. It will be appreciated that in respect of new proposals extensive detailed surveys and investigations would be required in many cases before activities could be launched, and this factor is receiving close attention. The estimates this year include an item for rehabilitation surveys, and although at present the shortage of professional staff does not allow of much being done in this direction it is anticipated that later in the year, when staff becomes available from the urgent national defence works now in hand, some of the required surveys will be commenced. I desire to place on record the Government's appreciation of the services of Mr. John Wood, who retired from the positions of Engineer-in-Chief and UnderSecretary on the 28th February, 1941, having held these offices for more than four and a half years. Mr. W. L. Newnham has been appointed as his successor. I wish also to acknowledge the loyal and efficient co-operation given by officers and workmen in carrying out the various works entrusted to the Public Works Department, many of which had to proceed under conditions of urgency associated with the Dominion's war requirements. With deep regret I mention the fact that of those members of the staff who left New Zealand on military service, fourteen have made the supreme sacrifice and several have been wounded or posted as missing. Three officers serving abroad in the Air Force have been decorated for conspicuous bravery. FINANCE. The payments and receipts and accumulated totals in connection with the Public Works Fund and other associated votes and accounts for the year 1940-41 are shown in the tabulation following. The gross expenditure amounted to £20,327,529, of which £4,267,869 was expended by other Government Departments; the recoveries in reduction of expenditure amounted to £7,317,521, of which £1,362,390 was recovered by other Departments ; the net expenditure totalled £13,010,008, of which £2,905,479 was expended by other Departments,

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VII