PUBLIC WORKS STATEMENT.

Globe, Volume XXII, Issue 2014, 7 August 1880, Page 3

PUBLIC WORKS STATEMENT.

[By Telegraph.] The following is the statement delivered by the Minister for Public Works, the Hon. Richard Oliver, in the House yesterday : Sir—Following the usual course I propose to begin by briefly reporting the operations of the Public Works Department for the seven months which have elapsed since I had a like honor last December. I shall condense this patt of my statement as much as possible, as I do not wish to weary the House with a multiplicity of details, and because it will when printed be accompanied by full reports from various heads of departments, by copious tables and by maps, which I hope hon. members will find useful as exhibiting the progress we have made in the construction of the railways already authorised. nobth island bailways.

Kawa-Kawa Railway—Beginning with the railway construction in the north of this island, the work on the Kawa Kawa coal line has been continued. A bridge, whioh is the most important work, except the terminal wharf, is in course of construction. Whangarei Kamo Railway—The works let on the Kamo contract of the Wharjgarei railway have been much delayed by the contractor, and are not yet finished, although the contract time has expired. The delay has seriously interfered with the development of the coal trade of the district, and with a view of assisting this industry I have sanctioned the laying of a branch to oonneot the jnain Jine with a shipping place in the borough of Whangarei, the local authorities having permitted the use of the streets for the purpose. An exploratory survey between Helensville and Whangarei has been made for the purpose of ascertaining the practicability of constructing a railway through that country. Another survey of a similar character has been made of the district between Whangarei and Kakakawa. Reports on these routes, with explanatory maps, will be placed in tho hands of hon. members. Kaiparo-Woikoto Railway —This hsß been finished satisfactorily, and the station buildings ire nearly oompleted. The line between Newmarket Junction and Waikouati has been finished and opened for traffic. The gap, however, between Helensville and Auckland, caused by the non-com-pletion of the Waitaki contract, still remains, and the condition of the work at the Summit tunnel gives no promise that it will be finished in the contract time, whioh ends in September next. The workshop site contract at Newmarket is being pushed on e> ergetically. The contractor for the reclamation in Auckland having failed to carry out his contract, it was taken out of his bands, and a portion of it has been re-let to another contractor. The Ohaupo contract has been finished, and the Waikato railway is open as far South as Te Awamutu, about two and a-half miles from tho confiscated boundary. Waikato-Thames Railway—The Grahamstown contract of the Waikato Thames Railway is completed, and the Shortland contract nearly so. " The Waikato contract, extending twelve and _ threequarters miles east from Hamilton, is proceeding favorably. A survey of this line has been completed from Hamilton to Te Aroha and up to Thames Valley for thirteen miles from Grahamstown, leaving about nineteen miles still unsurveyed. Foxton—New : Plymouth Railway—The railway from New Plymouth was opened as far south as Stratford on December 19th, and a further ssotion to Ngarei will, it is expected, be open in a few weeks. Some other portions of this line between Stratford and Carlyle are under contract. Some ore being done by day labor, and betwesn Carlyle and Wanganui the Waitotara oontract is approaching completion. The Waverley section is in hand, and the Carlyle wharf oontract has been let, while some portion of the works in the of Carlyle are now being prepared for absorbing unemployed labor. Commodious workshops have been built ab Wanganui, and a contraot haß been made for a new railway station and wharf at Foxton. Wellington-Woodville Railway—On the Wellington-Woodville railway, the works of the Carterton section, over twenty miles, have been vigorously prosecuted by the department, the average number of men employed being 275. It is expected that by September next the whole distance between Wellington and Maßt6rton will bo open for traffic. The Grey town branch was opened on the 26th of May. With the view of finding work for the unemployed in this district, some men have been engaged in earthworks and bush clearing on the Opaki section beyond the Carterton contract, and on the Crofton sections of the Wellington-Foxton railway. Sometimes as many as 850 of tho unemployed have been set at work. This cumber has now fallen below 100. Napier-Wcodville.—The railway is nearly completed to Makatoko, about seventy miles from Napier. The last contract, of five and three-quarter mileß will shortly be ready for public traffic. The works are being pushed on towards Tahorite, about twolve miles further, and surveyo of the country to the south have been completed for about fifteen miles more. Napier-Wallingford.— An examination of the country from Napier to Walliogford, through the districts between the Tukiki river and the sea hos been made, but the couutry appears to be very unsuitable for railway construction. MIDDLE ISLAND BAILWAXS. Nolson-Greymouth—The works on the Nelson to Greymouth line, on the northern end, have been continued to the completion of the railway connecting the city of Nelson with the port, and an extension of three miles beyond Foxhill by the Bellgrovo oontract is nowalmost completed at the Greymouth end the Stillwater contract. An extension of the original Brunner railway for threequarters of a mile, has been found to be a work of considerable difficulty and expense, the contract prioe for sixty-three chains being £12,234 for formation only. The harbor works at Greymouth, which have been carried on as a part of the improvement designed to develope coal industry in thot district, were almost suspended for some little time while awaiting Sir J. Coode's report. It arrived in March last, and it is satisfactory to find that the work already executed has been approved and adopted by him as part of his design. Hokitika-Greymouth Railway—Some small contracts on the Grey mouth-Hokitika Railway have either been finished or are near completion and no nesv works were bogun this year. Picton-Hurunui Railway—Tho last one-and-a-quarter miles of the railway from Picton to Blenheim have been completed, and the station buidings at Blenheim are in hand. HurunuiWaitaki railway with branches.—The now works on the main lino from Hurunui to Waitaki are the Waipara oontract, extending from Amberley to the Waipara river and the Weka Pass section nine miles long, a continuation of the line through the Pass to the Waikori and Hurunui plains. The latter section was reserved from contraot in order to provide work for the unemployed of Christchurch. Spriugfiold branch—The Springfield cutting was oompleted in February last. Little River and Akaroa branch—The Ellesmere formation oontract on the Little River and Akaroa branch. waß finished in March. A contraot has just been made for a portion of the plate laying. Ashburton branch —The first ten and three-quarter miles of the A»hburton branch will bo open for traffic on the 7th of April. Opawa branchOn the Opawa branch the bridge over the Opawa river has been built by contract, and tho remainder of the work, with the exception of another bridge, has been reserved in order to give work to the unemployed in the neighborhood. Canterbury Interior— The works whioh have been carried on during the year ore two bridges, those oyer the Eyre and Temuka rivers, whioh are finished. Lines

South of the Waitaki—Work has been almost entirely confined to the improvement of stations, the increase of wharfage and other necessary accommodation. Branoh lines — Further railway extension has been made on the following branch lines, viz.—the Livingston branch, the Catlin'a Biver, Tapanui, Edendale, Lumsden, Otautatau and Orepuki branohes, and on the Otago Central railway. On this latter the Wingatui section is under contract, and at the Hindon suction work has been afforded to a large number of the unemployed. The great depression from which nearly all our industries have suffered lately has thrown many workmen out of employment, and the Government have been called on to alleviate the consequent distress by finding work for them on the railways and roads which are in course of construction. We have thought it our duty to oomply with these requests, and I am sorry to say that no less a number than 1674 of these men are now being employed at low wages in various parts of the colony. Although it is to be deplored that in a new country of such great natural resources as New Zealand this state of things should exist, yet it is by no means a new experience in the history of the colony. At various times during the last twenty years the authorities have found it necessary to afford similar temporary employment, but fortunately the need for the interference of the Government has in every caso soon passed away, and has been succeeded by a large demand for labor in the ordinary industries of the country, and at the highest rate of wages known in any part of the world. I believe, Sir, that hon. members will agree with me in thinking that this season of depression will also pass away, and give place to another period of prosperity not inferior to that which we have until lately enjoyed. The disorganisation of the labor market is already beginning to work its own remedy, by bringing into existence new industries in the chief centres of population, and developing the self-reliant spirit of our working olasees. There are also the most encouraging indications of a revival of the gold fields industry, which may be of the greatest value to the colony at large Meantime it is satisfactory to find that although many of the men thus employed by us are engaged in work to which they are unaccustomed, yet from their labor! the colony has obtained a fair equivalent for the outlay. GBXBBAXi PKOGBBSS IN BAII/WAY OONBTBTJCTION.

The sums voted by Parliament for additional railway works in the last session, exclusive of preliminary surveys for lines not yet authorised, amounted to £2,308,700. On the 31st March £856,550 of this Bum had been expended, and liabilities incurred amounting to .£910,506, making a total of £1,767,056, leaving an unexpended balance on last year's votes of £541,644. Recognising the necessity for spreading the expenditure of the remaining publio works fund over a period of at least the next three years, and believing that as some of the railway works had been adopted in times of great prosperity, Parliament would not disapprove in our changed circumstances of having an opportunity afforded of reconsidering them, I have not been in haste to press on the construction of new works. In fact, in the Middle Island only one new section of railway has been commenced since the end of our last session. Mnny new seotions were got ready for contract, and in some instances tenders were invited and received, but the grave considerations connected with a falling revenue and increased deficit from our finished railways could not be evaded, and obliged us to defer the acceptance of some of these tenders, in order that time might be given for re-examining our future railway policy. BOADS. The expenditure of the votes for roads in this island has, for the moßt part, been entrusted to the various local governing bodies. The main roads under the charge of the Government have been maintained as usual during the year. These include the Groa? South road (Auckland), the Tauranga (laupo), and the Taupo (Napier) roada, and on several other local roads a considerable amount of work has been done. The road works instituted on the West Coast, between Waingongoro and Stoney Rivera, orossing the Waimate Plains, have been carried on very satisfactorily, and the two sections of the road will probably meet in a few days. The charaoter of the country is very favorable, no natural obstaoleß having been met. The cross road from Stratford _to Opunake, through the bußh, is also being pushed on, and good progress is being made. The amoant expended on roads and bridges in the South Island during the past year is very small, and no new works of importance have been undertaken. SNAGGING THE THAMHS KITES. Although BUch is not a public work as is usually referred to in a statement of this kind, I car not refrain from mentioning the self reliant and public-spirited efforts made by Mr Firth, of Matamata, to romove the onags from tho river Thames at his own cost. In these days, when colonists are too muoh in the habit of looking to the Government for almost everything, it is refreshing to see a publio work bo useful to the oommunity begun, carried on and finished by a private person, without even an application having been made to the Government for aid from the funds of tho colony. WATBB BACES. As will be seen from the report and statements attached, the expenditure upon water raceß does not appear to have produced the large benefits which might naturally have been expected from it. None of the companies subsidised by tho Government have been a succbbs, and |in most cases the undertakings have been abandoned. The total expenditure and liabilities upon wa*;er races upon goldfields up to the 31st Maroh, amounted to £441,633. Of this amount £42,329 gives no return whatever. Works which have cost £86,485 have been handed over to local bodies ; while from those races which are comparatively successful, viz., the Charleston, Nelson Creek, Waimea, and Mount Ida raceß, costing £312,819, the yearly return presents only about 1 per cent. The number of men, however, to whom these races afford the means of remunerative employment is 771, and their earnings per man average £l4O a year. THB COAIi INDTTSTBY. Almost every month brings new discoveries of coal in some parts of the oolony, and it has become apparent that New Zealand is exceptionally rioh in this mineral. Our most important lines of steamers are now almost wholly supplied from the coal mines of the oolony, and the more extended use of native coal will effect a saving of £BSOO on our railways in the Middle Island for the ourront year, in addition to an almost equal amount heretofore aaved on those in the North Island. WOBKING BAIXWAXS.

During the recess the management of the working railways has been the subject of inquiry by the Royal Commission appointed by his Excellency the G-overaor to report on the civil service of the colony, and also to some extent by the Royal Commissioners on railways. The reports of theee gentlemen are calculated to be of great service, and point out many defects in organisation and practice, some of whioh have been already removed or are in course of removal. The whole question of the management of the railways is under consideration in connection with the reports of the Commissioners. The working railways department began the last financial period under circumstances exceptionally unfavorable, heavy floods in the south having interrupted traffic over more than a hundred miles of line, causing a loss of revenue as well as a large expenditure for repairs. Amongst the first effects of the commercial depression from which we have been suffering has been a diminution of our railway traffic. This result was to be expected, and the efforts of the department were directed to obtaining greater economy in our system of railway management by working with a smaller staff of officers and men ; and by reducing the number of trains and the speed at which they were run considerable saving has been accomplished, while the convenience of the public has not been materially curtailed. The train service has already been reduced by 370,000 miles a year. The staff has been reduced by 266 men, and it is estimated that these and other economies whioh up to this time have been effected, will save on the year upwards of £44,000. Serious and constant attention is still being given to economise charges, and I am satisfied that the working expenses will be 'much further reduced. As these alterations to which I have referred can hardly be said to bavo commenced until after the prorogation of Parliament, they had but a small portion of the last financial period wherein tooperate. IJam sorry to say that for the nine months ending the 31st March, the railways only gave a return equal to slightly under 21 per cent, per annum, wbile the rate of interest which we have to pay is over 5. The loss on the coat of lines which stands at £8,629,582, wag at the rate of £237,730 per

annum, and had to be furnished from taxation. In the prosperous years through whioh we have just passed, we did not seriously regard the railway deficit, but thought only of the immense advantages of railways in settling and daveloping the resources of the country. We pointed to these advantages as justifying the expenditure, and spoke of our railways as remunerative undertakings, whether they contributed interest on their cost or not. Now if the colony were a large joint stock company with equal shares and an entire oommand of interests this view might be correct, but the benefits of railways are very unequally distributed, many districts being quite unprovided with them, while «11 have to contribute to the taxation from which the coat is made up. Th's charge on the colonial revenue is so great that it is a serious element in the expenditure of the colony, and it becomes questionable whether a desirable outlay in some of the departments of Government can be continued if our railways be not made more nearly self-supporting. The failure to obtain a greater direct return from our railways, such as is looked for in ordinary commercial enterprise, is no doubt mainly attributable to the smallness of our population. We are still a small community in point of numbers, and are thinly scattered over a wide extent of country. Our people are so few that they fail to furnish traffic enough, either of passengers or goods to make our lines pay at the ordinary rates hitherto ourrent. We|| have already many more miles of rail* way in proportion to our population than either England, Franoe, the United States, Canada, or any of the Australian colonies. In Great Britain there is one mile of railway to about 2000]inhabitants, while in New Zealand there is one mile to every 406. For every mile of railway in Victoria there are 108 per cent, more customers than we Lave ; in tho United States they have 43 per cent.; in Canada, 53 per cent. ; in New South Wales, 148 per cent.; in Great Britain, 383 per cent.; and in France 614 more people per mile of railway than in New Zealand. If this contrast with other countries were confined to the South Island, whioh contains by far the largest portion of our railways, it would show the disproportion still more forcibly, for instead of having 406 people per mile of railway, which I have said is the average for the colony, the South Island has only 330 people per mile. In New Zealand our average receipts per mile last year were £648, while in England they amount to £3485. Yet even with these comparatively largo receipts the railway dividends declared in England only average 4J per cent, per annum. Next in importance, in my opinion, among the reasons for want of commercial suocess in railway working is the needlessly low tariff adopted in many districts between two places, to whioh my attention has been called. Where, before the railway was made, the freight charged was £3 per ton our railway rate is 16s lOd. In another instance tho former rate was £6, and is now 17s 2d ; in another it has been reduced from £5 to 22s 2d. No doubt at the commencement of a railway system in a new country it is easy to make mistakes, and by no means easy to make railways pay with only 406 people to every mile. The result, however, has proved that the reduction was too great, for although our chief end and aim in railway construction is by facilitating travelling and cheapening the transit of goods to open the country and develope its resources, we now discover that we have gone too far and found ourselves face to face with a state of things as unpleasant as it was unexpected. I hope, sir, that I shall not be misunderstood as advocating any illiberally in tho management of our railways. The boat policy is to reach the multitude. I fully adopt the opinion expressed by Mr Gladstone when discussing the best means of making the Metropolitan Distriot Bailway pay. He said that " as a rule the State or individual or company thrives the best which dives deepest down into the mass of the community and adapts its arrangements to the wants of the greater number." But, sir, our population is, as I have already said, so small and the country so sparsely settled, that rules of the kind just quoted have amongst us only a limited application. The large use made of the railways, however, proves that if our people were as numerous as the resources of the country warrant us in expecting they will become,our rail ways would pay far more than mere interest on ooßt. Even with our present tariff the tonnage carried on our railways compares very favorably with the neighboring colonies, Victoria carrying 1062 tons, New South Wales 2299 tons, and New Zealand 2247 tons per 100 of population. The number of passengers on Now Zealand railways last year was 2,932,279, being 578 per cent, of our population; the number in Victoria was 3,829,256, being 437 per cent, of the population. Now, our freight traffic is not capable of indefinite increase, however low the rate may be, nor can we raise our tariff beyond a fair payment for the service rendered, however much we might be inclined to do so. Our principal railways skirt the sea coast, and we arc restricted in our tariff by the competition of water carriage. In the Middle Island railways, too, the tariffs are at present more strictly limited than they would usually be because of the cheapness of horse food, and the competition of ordinary vehicles. Even if this were not so, I should not in any case advocate excessively high rates. It will take time to develope a true system of tariff adapted to our circumstances. Our efforts. must necessarily be carefully made and constantly watched, but railway rates that are only designed to bring in 5 per cent, on cost surely cannot be considered high. If competition and tho modes of conveyance permit their adoption, we need not despair. I believe, Sir, it ultimately will attain a good result. We have covered the country with these stimulating and civilising agencies, and in their neighborhood settlement will extend, population and industries will inorease, and then our railways will become, if we desire it, aids to our revenue instead of a source of temporary embarrassment. At present, however, there is a feeling of great disappointment at [tho result exhibited by their yearly balance sheet, and amongst other remedies it has been proposed to sell the railways. No doubt, Sir, if _we could find a purchaser for them at cost price, such a course might seem to present an easy solution of the difficulty. It is a suggestion that might have been expected, and has at least one merit, that of extreme simplicity—given, a system of railways worked at a loss, to end the losb soil the railways. Nevertheless, I fear, Sir, the proffered solution will not help us much, for it is clear that no company would buy our lines except at a price calculated to yield at least the ourrent rate of interest, which at present moy be Btated at 7 to 10 per cent. These are the rates given for money advanced on freehold security subject, to little risk, and requiring from the owner scarcely any personal attention, while railway investments are exposed to dangers of various kinds, such as floods, heavy payments for accidental injuries, depression of trade, and so on. If, therefore, we seek to sell our railways, which are now paying only 2\ per cent, interest, we shall have to aocept for them a aum representing only a portion of their cost. Probably we should have to faoe aloes of millions of money, and certainly we should still be liable for the payment of the whole of their interest as at present, while we should abandon all chance of retrieving our position by improved management and forfeit for the railway system the advantages of increased population and growing industries. If the oolony were to sell the railways to a private firm what wonld that firm do to insure a profit 1 It may bo answered in general terms, it would manage better. Well, sir, I admit that the management is capable of improvement. I ooncede that the Government will probably never be able to manage so well as a private firm might, but no private firm is likely to engage in such a gigantic undertaking, and groBS mismanagement by large public companies is a state of things with which we are not entirely unacquainted. Of course a_ railway company would try to charge higher rates for carriage, but why cannot we ourselves do that ? Why should we submit to a heavy loss of capital to begin with, and then to the payment of extreme rateß as well ? Another, and not the least objection to the propoßal is, that a company occupying such a position would be a great power in the State, whose influence would probably not always be wielded in the interests of the people. I feel quite sure, sir, that it will never be necessary to accept this alternative, for I believe that oareful and intelligent management, and the natural growth of traffic, will yet make our railways commercially successful. Sir, the House will remember that at the end of the last session the Government expressed their opinion that the character of the various lines of railway in course of construction had not been sufficiently examined I before their adoption ; that in the prospeot of an insufficiency of funds to oomplete them they ought to be reconsidered ; that we announced our intention of advising the appoint-

ment of a Boyal Commission to make a fuller and more oomplete investigation of the cost and economical value of the works commenced and proposed that it would be possible for the Government to complete before the next sea sion of Parliament. His Excellency tho Governor accordingly commissioned five gentlemen from different parts of the oolony to make the inquiry. The Commissioners promptly entered on their duties, and after taking evidence in nearly every district in which railways are being constructed or are proposed to be made, they have presented a very valuable report as I he result of their labors. Copies of this report have by oommand been laid before Parliament, and although the conclusions that the Commissioners have arrived at may not be universally approved, yet we feel sure that the colony will recognise the impartial system on which their enquiries have been conducted, and we believe that these gentlemen have well earned the thanks of the community. In saying that the Government would not be understood as adopting implicitly the whole of their recommendations, we do not wish to be misunderstood. It is perhaps hardly within the bounds of possibility that a report dealing with bo many works and proposals in all parts of the colony should be accepted in every particular. For the present, however, even the restricted programme recommended by the Commissioners is far beyond our means. The estimated cost, beyond the present liabilities, of completing the lines of railways authorised by Parliament is £6,666,200. That being the case, it becomes sufficiently apparent that we must greatly modify our sobeme of railway construction, postponing some important parts of it until population and settlement have largely increased, and until the railways already constructed have beoome more nearly self-supporting. We have not the funds necessary to complete it at present, nor will our ordinary revenue bear the increased demand which every additional mile of railway makes on it for the yearly lose in working. We have no alternative, therefore, but to confine our operations to the extension of some of the incomplete lines to such nearest points as will bring them into use, and as far as possible make the expenditure already incurred to eome extent reproductive. Of the amount voted last year for public works, no lets a sum than £2,356,729 was for actual liabilities whioh we found in existence, and further expenditure to a considerable amount was made necessary by those liabilities. Realising the position of the publio works fund, we have endeavored to minimise the expenditure and to spread it over as large a[space of time as possible. We have stopped many new works even after contracts had been prepared by the Department and tenders received. Nevertheless, the country has learnt from my hon. friend the Colonial Treasurer that the state of the public works fund is most unsatisfactory. In his financial statement the Colonial Treasurer showed that the total ways and means on 31st March last was £3,262,410, and that the liabilities of the public works fund on the same date amounted to £2,455,313, reduceable, however, by £315,763 advances in the hands of officers of the Government, thus leaving a balance of £1,122,860 on March 31st, 1880, clear of liabilities. Since March 31st the ways and means have been augmented by miscellaneous receipts and recoveries, £29,934, and during tho four months ending July 31st the liabilities of the fund have been unavoidably incroased to the extent of £330,871. Adding, then, £29,934 to the balance of £1,122,860 on March 31st, and deducting £330,871 we arrive at £821,923 as the available balance on July 31st. Tho position of the account may perhaps be stated more clearly thus : —The ways and means on July 31et amounted to £2,677,910 17s Id, consisting of cash in hand, £593,910 17s Id ; Treasury and deficiency bills, £121,700 9s; investments, £67,000 ; guaranteed debentures, £BO,OOO ; total, £2,677,910 17a Id. The liabilities on the tame date amounted to £2,202,474. There were, however, imprests outstanding on July 31st, £346,486, making £1,855,988 the net amount of liabilities to be p'ovided for, and leaving a balanoe of £821,923, as already stated, for new works and services. The estimates whioh I am about to submit make a further demand on this balanoe of £674,238, leaving £147,685 only for future appropriations from the publio works fund. Bearing in mind the importance of spreading the expenditure of the balance of loan over the next two years, we should have preferred, Sir, to ask for the appropriation of a much smaller sum, but we have not found it possible to do bo. The votes for the vbrious works which we now propose, are designed to provide for the expenditure up to June 30tb, 1881. After that date, and until we are again in a poaition to become borrowers, the only sources whence we can draw supplies for these purposes will be a portion of the proceeds of land sales, and the saving from the estimates for the purchase of Native land, a saving which we have reason to believe may be considerable, but which at present it is impossible to estimate. I will proceed, sir, to briefly summarise the works. PBOPOSED BAILWAYB.

Tha present contract at Kawakawa will be oompleted, and the remaining part of the line will be finished, with a branoh to the town wharf, bo as to admit of the coal traffic being carried on. The line from Kaipara to Te Awamutu will be completed fib for traffic. The question of the propriety of constructing the Waikato-Thames Railway has been raised by the Railway Commissioners, who have recommended that it should at present be completed only to the junction with the projected Cambridge line, and that the Cambridge section of 11 miles should be Bubstistuted. The Government intend to have the Bubject very carefully investigated, with a view to determine which proposal will be most benefioial to the country, and will act accordingly. The vote will therefore be proposed in the alternative. The line between Napier and Makatoko will be completed. The Wellington and Opaki line will be completed as far as Masterton, and provision made for the unemployed on the extension to Opaki. The station works at Wellington will aho be constructed. The Foxton Beotion and wharf on the Wellington and Foxton line will be completed. Sundry necessary works _on_ the opened lines between Foxton and Kaiawi will be exeouted, and the extension to Wavorley, which is in hand, will be finished. The works in the neighborhood of Carlyle will be proceeded with, giving work to the unemployed. The contracts between Stratford and Hawera will be pushed on, and the formation to Normanby will probably be completed within the present year. The extension of the line from Foxhill to Bellgrove, on the Nelson to Greymouth line, will be oompleted. The Stillwater section, now in progress, will be finished, and the Greymouth harbor works carried on. The Pioton and Blenheim line will be completed at the Blenheim end, where there are still some station works unfinished. The section of the main line from Amberley to the Waikari Plains is to be finished, the nine miles through the Weka Pass being reserved for the unemployed. A few urgent station works on_ the opened lines are provided for. The Waimakariri Gorge portion of the Oxford-Sheffield line, which was reserved for the unemployed about a year ago, will be carried on as the demand for work may require. The extension of the Opawa branch towards Fairlie Creek will also be carried out by the same means. The Ellesmere section of the Little River and Akaroa branch is to be completed. The general expenditure proposed on the Otago main line is for the completion of the stations and other works now in progress. Duntroon branch is to be finished across the Maerwhenua river, the bridge over which is already built. The formation on the first seotion of the Livingston branch, recently resumed to give work to the unemployed, will be finished by them. The sections of the Western railway now in progress will be completed. The Hindon section of the Otago Central railway, which was opened to the unemployed about a vear ago, will be reserved exclusively for them, as it is now almost the only suitable work in Otago on which a large number can be employed. Ac present there are about 700 men at work there, and although this number will in all probability decrease duving the summer months, I fear that there is no prospect of _ a complete cessation in tho domand which will be made on us for this kind of employment, and wo have therefore made provision for supplying it on this section. WATBB BACKS MIDDLE IBI.AND. The work of improving and extending the various water races now in progress will be carried on. BO ASS. In the North Island the proposed appropriation will admit of the road works in the Waimate Plains and other Native districts being continued, as well as for the maintenance in a serviceable state of oertain main roads which it is necessary to keep open for traffic. In addition to the completion of the various

work* in hand, the road from Nelson to Greymouth and Westport is to be improved throughout, bo as render it fit for ooaoh traffic, and make it an arterial line of communication between the north end of the island and the West Ooast. OOKOXTTBIOH. In conclusion, sir, I would say that although the Government have found it to be their imperative duty to abate the speed at which public works havo until lately been carried on, yet we believe that the time is not far distant when the works now temporarily suspended may be resumed, and those now proposed to be curtailed completed. The resources of New Zealand are so great that for her there can be neither retrogression nor standing still. But, sir, it is incumbent on us to recognise that for a State, as for an individual, a steady progress and an assured prosperity can only be maintained by obedience to the dictates of prudence. I have now, sir, to express my gratitude for the patient attention with which the House has heard me.