HOUSE OF REPRESENTATIVES.

New Zealand Times, Volume XXXIII, Issue 5449, 13 September 1878, Page 6

HOUSE OF REPRESENTATIVES.

PUBLIC WORKS STATEMENT. Tuesday. August 27. The Hon. Mr. MACANDREW was greeted ■with applause on rising to males tho Public Works Statement, It was to tho following effect ; ~ Sir, —Xu submitting the annual Public Works Statement I shall endeavor to do so in as fnw words and as clearly as I can. The fc ask is new to , me, and I am sure the House will extend to me itj indulgence. It will, I think, bo more satisfactory, and will make , the subject clearer, if, instead of embodying fully in my Statement the materials with which I have been furnished by the officers of the various department?, I append, as usual, the departmental reports themselves. With this view X shall confine my Statement to a bare outline of results for the year, and to an exposition of the Public Works proposals of the Government as respects the future. In this way, honorable members will bo spared having to listen to a lengthy statement from me, and they will be enabled, at leisure, to acquire a perfect knowledge of wbat has been doing during tho year. Before proceeding further, it may, perhaps, bo expected that reference should bo made to . the recent changes which have been effected in the Public Works Department. It will bo remembered that last session tho working of our railway system was very fully inquired into by a select committee of this House. One of the most important conclusions arrived at was, that the construction of railways is one thing, and the working of them is another, and that the two things ought to be placedunderdistiuotmanagement. Accordingly the Government has given practical effect to this opinion, with, I am glad to say, so far as it has gone, good results, both as regards efficiency and economy. The new system has involved of course, to .some extent, a complete reorganisation of tho Public Works Department, and it must necessarily take some time before the machinery can be got to work smoothly in its new groove. X am persuaded, however, that the change will be a step in the right direction. The management of working railways in each island has been placed under a commissioner who, in matter of detail, has been invested with large discretioniry power, and who is directly responsible to tho Government through the Minister of Public Works ; this change, when it gets fairly under way will, I believe, result in numerous improvements in the practical working and organisation of our ailway system. The committee further suggested that the experiment of leasing the railways might be tried in the case of one of the Auckland lines. This is a matter, however, which involves very grave consideration ; and, so far as the Government has been able to arrive at any conclusion on tho subject, we do not yet see our way to taking any action in this direction. No doubt much may be said both for and against leasing the State railways. It seems premature, however, to entertain the question until such time as the system is more completely developed, or, at all events, until it is seen how the recent change in the administration is likely to turn out. In the meantime the balance of consideration would seem to be much in favor of tho State retaining the management of its railways in its own hands, although I am not prepared to say that the time may not arrive when it may be otherwise. Among other points to which the committee of last session directed its attention was that of affording greater facilities for the purchase of railway tickets than exist at present. I may say that with this view arrangements are now being made whereby, at the chief centres of population, tickets may be purchased otherwise than at railway stations. Although daring the past financial year there are one or two small lines which have not paid working expenses, yet upon the whole the returns will no doubt be regarded as satisfactory. . WORKING RAILWAYS, MIDDLE ISLAND. In the Middle Island considerable lengths of line have been opened during the past year. At the close of the preceding year there were 617 miles of railway open for public traffic, and on 30th June last 711 miles were opened, being an increase of 94 miles. The gross revenue on Middle Island railways daring the year amounted to £467,316, and the expenditure to £321,970 ; leaving a net balance available for tho payment of interest of £145,346, as against £118,040 for the previous year. The working expenses of the whole of the Middle Island railways have averaged 68'89 of the receipts. Tho total expenditure on the construction of railways in the Middle Island, including the estimated provincial expenditure and the outlay on harbor works at Greymouth, is, in round numbers, about £5,469,000, so that the profits show 2’65 per cent, on the whole outlay. This may be regarded as a not unfavorable result, seeing that some of tho lines included in • the above outlay have only been opened recently, and others are still unfinished. Tho total number of passengers carried during the year was 1,159,147. Tho working expenses on the Dunedin section are considerably higher than daring the previous year. This is mainly attributable to the heavy expenditure which has been found necessary in tho renewal of rails and sleepers. It will be seen from the departmental reports that £36 per mile of railway has been expended during the past year in new rails and fastenings on the Dunedin section. Tho working expenses on the Christchurch section have been considerably reduced. The commissioner’s report shows a decrease of upwards of 6 per cent, on the gross revenue, being equal to. a sum of £17,500, an amount which would have been considerably larger but for the introduction of a new tariff and mode of charge during the year. For example, the rate during the year 1876-77 between Christchurch and Lyttelton for coal was ss. 6d. per ton, and on timber Is. 4d. per 100 ft. These rates have been reduced to 3<. 6d. and lOd. respectively, leaving a difference in favor of the earnings of 1876-77, as against 1377-78, of 2s. a ton on coal and6d. per 100 ft. on timber, which on the quantity conveyed represents upwards of £6700. In comparing the result of the management for the two years, it is only fair to observe that, had the old rates been maintained, the sum named would have appeared at the credit * of the past year. ■ It is held by some that provision should be made for wear and tear and renewing the lines, by moans of a sinking fund. I am disposed to think, however, that the system at present adopted—viz., that of renewing the lines as required and charging the cost directly against working expenses—is the beat; it is certainly the simplest as regards accounts. It is not as though tho whole of the lines had to be renewed at one and the same time—the work of renewal really commences from the date of opening the line for traffic. It may be interesting to observe that the earnings per mile per annum on the three main sections of railways opened for traffic in the Middle Island are—- £ s. <l. Christchurch section 70(10 7 per mile per annum, Dunedin section .. 1071 10 5 „ „ Invercargill section. 331 3 1 ~ WORKING RAILWAYS, NORTH ISLAND. In the North Island there were 311 miles of railway open for public traffic on 30th June last, being 99 miles in excess of the number open on the same date of the previous year. The gross revenue for tho year amounted to £102,581 18a. 4d., and the expenditure to £83,025 2s. 7d., leaving a net balance available for tho payment of interest of £’8,656 15s. 9J., as against £13,565 12s. 8d; for the preceding year. Tho working expenses of the whole of the North Island railways have averaged BTBI per cent, of tho receipts. The total expenditure on railways in the North Island up to date is, in round numbers, about £2,473,000, snowing a profit on the whoje outlay of 15s. per cent. A saving of some £BOOO a year has been effected in the working expenses of North Island railways since they have been placed under separate management. The total number of passengers carried during the year was 313,728. The reports of the Commissioners of Railways for each island so fully explain tho position, and afford such ample information of affairs, that I shall not further weary the House on this part of tho subject. RAILWAYS UNDER CONSTRUCTION—NORTH ISLAND. Bo much for tbo working railways. I shall now turn to the other department of Public Works, namely—that of railway construction. You will, no doubt, be glad to learn that a considerable saving will be effected in the head office staff of tbu department, although the full extent of such saving will not appear until the expiration of the twelve mouths’ notice of termination of engagement to which officers are entitled ; tliu estimates will then show a reduction of some £3OOO a year on departmental • a daries. I am not without hope that a still further reduction may be effected without impairing the efficiency of tho public service.

This - will, of course, depend upon the extent to which we may bo enabled hereafter to carry on railway construction. The position of Engineer-in-Chief for the colony it has been found expedient to dispense with, chiefly on the ground that it ia impossible for one man to exercise any very minute personal control over the public works in both islands. It has, therefore, been deemed conducive to the public interest to appoint an engineer in charge in each of the two islauds, both of whom are, as in the case of the. Commoners of Railways, directly responsible to and under the control of the Government, through the Minister. By this means, the professional head of the department, primarily responsible, will be enabled to exercise a much closer personal supervision and control over public works than heretofore ; aud so far ns my experience of the change enables me to judge, I am of opinion that the now arrangement is likely to work well, and bo beneficial to the service. The departmental expenditure has not been increased, but has been diminished by the change. It has been alleged that the changes by which the construction cf public works, and the working of railways ineach island, havebeen placed under distinct heads, is the forerunner of some deep aud sinister design on the part of some person or persons, and that it is studiously intended to lead np to the political separation of the two islands. I need scarcely say that such surmise is absolutely without foundation; one of these changes, at least, has been the result, of careful inquiry by a committee of this House, and, in so far as I am concerned,. both have been made solely and simply a view to more efficient and economical administration, altogether irrespective of the political opinions which I have, long held, and which I still hold, as to what would have been the best and most suitable form of Government for New Zealand. I would even go further, and say that, in my opinion, it would have been well for the colony to have had two Ministers for Public Works, one for each island—both being members of the Cabinet, with seats in and responsible to the House. I venture to think that, had such been the case, there would have been much more to show for our money than there now is. I shall now allude to the expenditure which must be incurred in respect of the completion of the portions of railway already authorised in the North Island : Miles. , £ Kaivakawa ~ .. 6 .. 27,000 Kaipara-Puniu .. .. 141} •• 247,000 Napier-Mnnawatu .. 701 .. 121,000 Wellington- Woodville.. 60 .. 271,000 Waitara-Palea .. ..-33} .. 75,000 Patea-Manawatu .. 103 .. 217,000 Total .. .. 425} .. £958,000 Of this amount, £321,625 are liabilities already incurred ; and the difference, £636,375, is the amount required to finish the lines, which, when completed, will give 425} miles open for traffic in the North Island. RAILWAYS UNDER CONSTRUCTION —MIDDLE ISLAND. The expenditure necessary to complete the Middle Island railways already authorised is as follows; Miles. £ Nelson-Foxhill .. 23 .. 39,000 Picton-Blenheim , .. 18J .. 27,000 Bruuner-Greymoufli .. 8 .. 112,000 VVestport-Ngakawau .. 10$ .. 40,000 Amherley-Waitaki .. 315$ .. 303,000 WaUaki-Bluff .. .. 361 .. 366,000 Winton-Ki'gston .. l>3 * .. 25,000 "Western railways .. 44£ .. 103,000 Waipahl to Tapanul .. .. t 72,000 Total' ■ .. 874 £1,037.000 Of this amount, £398,430 is for liabilities already incurred, and the balance of £688,570 is the amount required to finish the lines, which, when completed, will give 874 miles open for traffic in the Middle Island. It will thus be seen that the sums required to complete and to place in proper working order the lines in both islands, are, in the North Island, £958,000; and in the Middle Island, £1,087,000; making together£2,o4s,ooo, an amount which will go far to absorb the recent loan. It is proposed, however, to expend] only £1,176,500 during the ensuing year, THE FUTURE. I will now proceed to indicate our proposals for the future. NORTH ISLAND RAILWAYS. We propose to fill up the gaps in the North Island system as follows: Wellington to Fox ton via Waikanae Cl miles. Waitotara River to Upper Patea Crossing 51 „ To Awamutu (Waikato) to Inglewood (Taranaki) 125 „ This will complete an unbroken line from Wellington to Auckland of 476 miles. Masterton to Woodville .. .. 50 miles. Woodville to Papatu .. .. .. 40 Thus establishing unbroken railway communication from Wellington to Napier by a line of 220 miles. Waikato to the Tinmes .. .. 30 miles. Branch line to Hamilton .. .. 2J „ Helensville to Kaukapakapa River .. 21 ~ Except as regards the line from Waikato to the Thames, theye are no actual survey results upon which to estimate the cost of these works ; aud the figures I am about to quote are based upon the ascertained mileage cost of the railways that have been constructed in different part's of the colony. Upon this basis, the following estimates of cost are arrived at - : Wellington to Foxtori . £440,000 Waitotara River to Upper Patea Creasing.. 357,000 Te Awarautu to Inglewood 1,115,000 Masterton to Fapata via Woodville .. 030,000 Waikato to the Thames 108,000 Branch line to Hamilton 10,000 Helonsville to Kaukapakapa River .. .. 25,000 Wangarei to Kamo (7£ miles).. .. .. 30,000 Total .. ... .. .. £2,775,000 If we add to this the amount required to complete lines already authorised, namely, £958,000, we shall have a total of £3,733,000 for North Island railways. The construction of the line through the Waikato country, estimated, as I have said, to cost £1,115,000, will, it is hoped, be fully warranted by the acquisition of considerable areas of laud suitable for settlement. I understand that the line will run through some of the finest laud in New Zealand ; and, from what has passed between the Hon. the Premier, the Hon. the Native Minister, and the natives concerned, there is good reason to hope that the acquisition of the necessary land will be successfully negotiated. If those natives have a just conception of the vast revenue which will accrue to them after parting with sufficient land whereby to construct this railway, they will not hesitate for a moment to enter heartily into a transaction which is bound to increase the value of the land which will be left to them very many fold. Moreover, they may earn a large amount of money by devoting tbeir labor to tbe construction of the line, and there ia good reason to believe that large numbers of them will gladly accept the useful employment which the construction of this lino will afford.

The construction of the Wcllington-Foxton line will, to some extent, be contingent upon the acquisition of laud from the native owners. In addition to an area of 800,000 acres-of Maori laud, 180,000 acres of which have been under negotiation for some time, the line will render available for settlement 3 00,000 acres now in the hands of the Crpwn ; and there can bo no doubt that, taken together, these lands will ultimately realise an amount which will go far towards covering the cost of the proposed railway. I know there may be considerable difference of opinion amongst hon. members with regard to this line ; but I think that, apart from any advantages it may of itself yield, by enabling the,country between "Wellington and Foxton to bo beneficially occupied, it is extremely desirable that it should be made, as part of the main trunk line which is to connect Wellington with Auckland. If the two great centres, Wellington and Auckland, are tu be efficiently connected by railway, this Wellington to Foxton portion must be constructed at some time. I believe it to be well that wo should accept the conclusion that that connection has to be made ; and, if so, I think the Parliament and the people will agree with mo that the sooner it is done the better it will be for the country. It will be seen from one of the appendices to this Statement, that during the recess the question of the best route from Wellington to Foxton ha? occupied tho attention of the Public Works ; and of this honorable gentlemen may rest assured, that, assuming tho Government should bo enabled to undertake tho work, it will not be commenced until there has been a further, aud a most thorough, investigation as to the beat route to be adopted. It will thus be seen that our proposals embrace one main lino of communication on tbo West Coast from Wellington to Auckland and’the Thames, and another on the East Coast, Wellington to Napier, To make the system complete, it remains but to establish a connection between these two main lines by means of a short link of 12 miles between Bunnythorpe and Woodville. This would place Napier, and nearly all tho East Coast country, iu communication not merely with Wellington, but also with Manawatu, Wanganui, New .Plymouth, and Auckland. The probable coat of this link would be £119,000, and there can bo little doubt that sooner or later this work will be undertaken.

As regards the North of Auckland it will be seen by these proposals that if the Kaukapa-

kapa station can be advantageously selected, railway communication for a distance of forty miles will connect that city with the great Kaipara estuary, at a point accessible to vessels of ordinary tonnage. The short line from Waugarei to Kamo, opening up, as it will do, the important mineral and agricultural resources of that district, will come in as a portion of the main north Hue, which will, when completed, connect Auckland with the Bay of Islands. MIDDLE ISLAND RAILWAYS. Now, as to the Middle Island. The works we propose for the future are— Miles. £ Otago Central—Duncdm to Albert Town, Lake "Wanaka .. .. .. 160 1,100,000 Amberley to Brunnerton .. .. 110 950,000 Greymouth to Hokitika .. .. 2C 220,000 Canterbury-Interior Main Lino—Oxford to Temuka 85 380,000 South Ashburton to Ashburton Forks 20 55,000 Albury extension .. 20 110,000 Tapanul extension to Heriot Burn .. 10 40,000 Fortroso to Fdcndale .. .. 20 310.00 D Otautau to Nightcaps .. .. .. 16 75,000 Clutha to Catlin's River .. .. 38 95,000 Waimea to Switzers 15 70,000 Lumsdcn to Mararba .. .. .. 35 180,000 Shag Valley branch line 9 35,000 Tapanui to Heriot Burn .. .. 10j 40,000 Waireka branch to Livingston ..16 105,000 Making a total length of proposed railways for tbe Middle Island of 5761 miles, at a total cost of £3,565,000. Adding to this an amount of £1,087,000, winch is the estimated cost of completing and putting into working order the lines already authorised and opened for traffic in the Middle Island, we shall have a total of £4,652,000 for that island. . As regards tho Otago Central, honorable members will recollect that this House last session, both by resolution and by Act, affirmed that 100 miles of this line" through StrathTaieri to Clyde should be proceeded with ; and the House also passed a resolution, in compliance with which 396,000 acres of Crown lands have been reserved from sale, with the view of devoting the proceeds, when they are sold, to the construction of this portion, of line. It is now proposed to extend the line from Clyde to Lake Wanaka, a distanced 60 miles, for some 60 miles of which the country is as level as a bowling-green ; the whole of it being in the hands of tho Crown and available for settlement. My belief is, that no other of the lines now proposed will promote settlement and increase the productive power of the colony to the same extent as the Otago Central; and I venture to predict that many years will not pass without this line being extended to Hokitika via tbe Haast Pass. The length of that extension ’ from Albert-town, the nowcontemplated termination of the line, is only 190 miles ; and the highest point of the range to be crossed is only 1700 feet, as against 3000 feet in the next line we propose to undertake, —that namely, from Amberley to Brunnerton, a distance of 110 miles.

Although it does nob appear that this Am* berley-Brunnerton line, in proportion to its length and cost of construction, mil open up a very large extent of country suitable for settlement, yet the area of such land that will be opened up la by no means inconsiderable, and the proceeds of its sale will go far towards defraying the cost of the work. There can be no room for doubt that the traffic between the East and the West Coasts will, by this line, be developed enormously. It is estimated that, even now, were the Hue at work, there would be at the least 1000 tons of coal alone brought across weekly; and if, as I believe, this coal, which is quite equal to the best Newcastle, can be put into ships’ holds at Lyttelton for somewhere about £1 a ton, it is difficult to place any other limit than that of the carrying capacity of the lino, upon the traffic that would be developed. There is an almost unlimited quantity of timber, which would find its way to market by this railway. Honorable members will gather from the engineer’s report that much careful exploration will be required before the exact route can be determined. ,

From Brunnerton to Greymouth, as members are aware, there is now a railway in operation, and we propose to continue it to Hokitika, a distance of 26 miles. In accordance with a resolution of this House last session, a reserve of land was made in the Aorere Valley in the Nelson District with a view of the proceeds being applied to railway construction. A flying survey of proposed line is now being completed. The Government is, however, of opinion tjiat, before any, expenditure in this direction is incurred, it is desirable that the river should be bridged, and the district rendered accessible by road, for which purpose £I7OO has been placed on the Estimates. It will be recollected that last session the House, on the motion of the honorable member for Akaroa, Mr. Montgomery, directed that surveys should be made, and estimates prepared, for a number of branch railways, as feeders to the main line. Those plans been made, and the estimates are ready ; but it has been suggested that the general interests of settlement would be better served, and the resources of Canterbury be developed to a much greater extent, if, instead of those branches, we obtained authority to construct an interior main line, of about 85 miles in length, by means of which a very large a'rea of available country would be opened up and iuad£ productive. The engineer, in his report on this subject, says :

Of the eight branch railways named in the Canterbury Railways Land Reservation Bill, 1877, ono is provided for in the general Estimates,- and two'are taken up by companies, leaving five for which provision lias not yet befcn made, viz. Oxford to Malvern line .. .. II miles. White C iffs to Jlakala Gorge.. .. 22 ~ Ashburton to Alford Forest .. .. .20 ~' Albury to Fairlie Creek .. .. 10 ~ Orari to llilton .. 13 ~ Total .. .. .. ~ 70 miles. The estimated coat of the whole, in working order and fully equipped with rolling-stock, is in rouqd numbers, £330,000. - The scheme of the Canterbury branch railways, as above laid down, is open to several objections. Some of the lines run a short distance up a valley and there stop, it being impossible to extend them, while possibly another valley close by leads to good country beyond the immediate terminus. Again, some of them are branches, not only off branches, but off-subsldiary branches—a very objectionable feature in working. Every one of the “deddends” beyond the last junction will require a separate plant, no matter how light ‘the traffic may bo. • Instead of having a number of branch railways on the Canterbury plains running at Hgh*- angles to the main li-e, as the present system will inevitably lead to, I would propose to construct a subiidlary mainline, commencing at Oxford and skirting the foot of the range via Malvern Hills, Ashburton Forks, and Geraldine, to a junction with the main lino at Orari, Winchester, or Temuka, together with on j connecting branch between South Ashburton and the Ashburton Forks. The subsidiary main lino above described would be 85 miles long, and its cost about £380,000. Except at the river beds, it presents no engineering difficulties, and several of the road bridges now erected over the larger rivers could be utilised. Its adoption would save-the two lines at the Ashburton Forks and the Orari-HIUon branch now proposed, and several more of the same kind that are sure to follow.

I agree with this view, and now submit proposals for the interior main line—Oxford to Temuka—accordingly. The South Ashburton to Ashburton Fork* and tho Albury extension lines will facilitate the beneficial occupation of upwards of 200,000 acres of land; which must add largely to the exports of Canterbury, and to the revenue of the mainline; of this land 30,000 acres are in the hands of the Crown.

Some honorable membeia may be disposed to think that, having regard to the length of the railways which Canterbury already possesses, she is allowed an undue share in our proposals ; but slight reflection will show that such an objection caunot be fairly sustained. When we consider the large amount which the coffers of the colony have derived from the land revenue of Canterbury, and the amount which, it is hoped, will for some time to come continue to he derived from the same source, I maintain that the district is entitled to oven more than is now proposed. We are, in fact, only intending to confer upon the people of Canterbury benefits derivable from applying to a colonial purpose their own money—only proposing to expend a portion of land revenue for the benefit of those upon the land from which that revenue has been derived, by devoting it to purposes to which not only is it legitimately applicable, hut for which it ought always to have been held sacred. The same remarks will apply to the other railways, which are to depend for their construction upon the proceeds of the sale of lauds to be rendered valuable by them.

A very important line iu Canterbury, which Is not included in the present proposals, is the Akaroa aud Lake Ellesmere line. The Government hope that tho trust—whose powers will be prolonged and extended by the Bill which has recently passed this branch of the Legislature—may find means whereby this work may be proceeded with. If, however, it should be found that the trust is unable, to do so, tho Government will, at a future time, bo disposed to deal with tho matter specially, with a view to this most important undertaking being pushed forward. 40 As regards tho branch line, Waipahi to Heriot Burn, it will be recollected that last session the House decided that this branch should be constructed as far as Tapanui. It voted no money, for tbo work, but resolved that it should bo paid for out, of jaud to be set aside for tbo purpose. I am pleased to say that this branch is now under )vay, and that no money will be required until after completion ;; the terms o> tho contract being that payment is to bo mado iu cash, in throo equal inualmcuts, at two, four, and six mouths after

the line is completed; The amount is £61,500, aud the time , for completion twenty-two months from date of contract, so that we shall have two years and upwards in which to realise upon the 40,000 acres of land reserved. The probability is that this land, owing to the construction of the railway, will realise from £2 to £3, and upwards, an acre, and will thus yield double the amount of the contract. I may add that there were five tenders for the work bn the above terms, and the one accepted, being the lowest, was £3OOO under the engineer's estimate. This fact is worth any number of arguments to show how we might, to a groat extent, construct our railways without increasing the amount of our public debt, or adding to the annual burden in respect thereof. It is now proposed to extend the line 10 miles further; by so doing the growth of cereals will be very largely increased, and one of the most productive districts in the colony fully developed. ; I have heard it objected that now, when the land fund has been colonialised, it is unfair to the colony as a whole to alienate large portions of its landed estate for local purposes. To me such an objection seems—if X may be permitted so to say —simply absurd. We are not alienating landed estate ; we are changing the form of parts of it, and thereby greatly .increasing the value of the whole. If portions of land go, so far as the colony is concerned, the railways constructed out of the proceeds remain ; and if we manage our affairs wisely, we shall derive a much larger income from those railways than we ever did, or ever could, derive from those portions of laud. We do not'propose to deal exceptionally with the proceeds of land set apart for the construction of railways. Those proceeds will be dealt with as ordinary revenue ; while from .the enhanced value of the lands to be affected by the lines so constructed, we may fairly assume it as a fact.that the ordinary revenue will year by year be greatly increased.

SUMJIAIir OF PROPOSALS —AIDS, TO THE PUBLIC WORKS FOND.

Summing up the proposals I have had the honor to submit, they will be found to involve an expenditure for railways in the : North Island of £3,733,000, and in the Middle Island of £4,652,000 ; altogether, 8,385,000. As I have already observed, the estimates under which these figures have been arrived at are to a certain extent approximate.. My belief is that they are more over the mark than under, and that, with judicious and careful administration—unless circumstances alter very much within the next few years—it will be found that a much less sum will suffice. We propose that the expenditure shall be extended over five years, which, in my opinion, is the shortest period within which we could carry out works to this extent, unless we are prepared for the importation of labor to a greater extent than can be readily absorbed in the permanent settlement of the country. Our object will be so to regulate the administration of the wastelands of the Crown, as to afford every inducement and facility to men who labor in the construction of railways to invest their earnings in land, by, laying off allotments for sale along the various lines as they progress. It may, perhaps, be asked, is not £3,600,000 too large a sum to expect to be spared from revenue ? Is the revenue likely to be in a position to meet such a demand ? In order that hon. members may be enabled to form an opinion as to- this, I shall enumerate the different areas of Crown lands, the value of which will be specially affected by the proposed railways, and the sale of which may be said to be contingent upon those lines being constructed. In the Middle Island, the Otago Central to Albert Town will pass almost entirely through Crown land, aud open up the most valuable public estate in the colony : it will affect an area of 2,250,000 acres, all in the hands of the Crown.

Amberley to Brunnerton will pass through nearly 300,000 acres ot freehold, and render available 400,000 acres of Crown laud.

I am disposed to think that much may be done in this direction, and that a fair proportion ot the money expended on public works may find its way back to the Treasury. Out of the loan authorised last session, thera remained, on 30th June, available for public works, about £2,000,000. If we add to -the Public Works Fund from ordinary revenue, during the next five years, say, £3,500,000, the amount just stated as available will bo increased to £5,500,000 ; and there will remain about £3,000,000 to be raised by further loans, in order to meet the estimated cost of the whole of our proposals. Greymouth to Hokitika will affect 85,000 acres of forest laud belonging to the Crown. Canterbury subsidiary main line will pass chiefly through freehold land, but as it cuts across all the valleys at the base of the bill country, its construction will bo of considerable value to the settlement of those valleys, and render more accessible an area of Crown land of 560,000 acres.

South Ashburton to Ashburton Forks and Albury extension will enhance the value of 30,u00 acres.

Fortrose to Edendalo.—A preliminary survey of this line has been made, in terras ot a resolution of the House last session, and land has been reserved for construction in accordance with the same resolution. It will promote the profitable occupation ot 120,000 acres ot land, 40,000 of which are in the hands of the Crown. ■

Otautau to Nightcaps. Tins is an extension of the inland line from Riverton. It will render available a very valuable coal field, and promote the cultivation of over 50,000 acres of fine agricultural land, 10,000 of which is in ths hands of the Crown. Clutha to- Catlin’s Elver is the commencement of a lino which passes through a district containiug 60,000 acres of fine agricultural freehold laud. It will lead to the occupation of a territory which contains 60,000 acres of Crown iahd, chiefly forest. Waimea to Switzers opens up 200,000 acres of fertile land, much of which is ready for the plough, and all in the hands of the Crown. Lutnsden to Mararoa opens up 200,000 acres of Crown land of the finest quality, a great portion of which will, I believe, be occupied and cultivated very shortly after it is rendered accessible by rail. Shag Valley branch is a line which was intended to have been made by the Provincial Government ot Otago. Surveys and working plans were prepared, and public tenders applied for and received, when abolition intervened. It commands a rich agricultural and pastoral district of 45,000 acres, of which 10,000 acres belong to the Crown, and will be one of the best paying feeders to the main line between Dunedin audOamaru. It will, moreover, greatly facilitate access to the important goldmining' and rapidly-increasing agricultural districts ot Macrae’s and Hyde. It will thus be seen that an area of nearly 4.000,000 acres of Grown land in the Middle Island will he affected by the proposed lines. Much of this land, if accessible by rail, and in the market uow, would realise £5 an acre and upwards. Probably wo shall not go beyond the mark in estimating that it will realise to the State, at a’moderate computation, little short of the whole estimated cost of the railways—viz., £4,650,000 —now proposed to be made iu the Middle Island.

As regards Crown lands in tho North Island, I have first of all to direct the attention of hon. members to the fact that about 120,000 acies of the best land on the West Coast,’‘portion of the coaßscated territory, is now being surveyed for sale. I do not wish to raise the expectations of hon. members unduly, but I believe that I am warranted in reckoning that from this quarter alone (irrespective of-the arge area of land already acquired and under negotiation in the same locality) we may expect to receive a net revenue of three-quarters of a million sterling. In addition to these are very largo areas of land in the Thames and Plako Districts, which will at once acquire a greatly increased value from tho prospect of railway communication being likely to be opened between Grahamsfcowu and Waikato. Other large blocks of laud in tho Bay of Plenty, Poverty Bay, and Wellington Districts will shortly be available, and we shall have the gratification of beholding the North Island, for the first time for many years, yielding a substantial land revenue. For more particular information as to area, locality, and probable value of our North Island land estate, I would refer hon. members to.*he usual statement on native lauds, which will be shortly made by my colleague tho Native Minister. • In reference to such of those lands as arc situated upon the, "West Coast of this island, forming part of our confiscated territory, I have a proposal to make to the House, which, while it may appear to bo a considerable modification, if not a reversal of the financial arrangements of last session, is really a means of giving n practical effect to those arrangements. These lauds have been acquired at an expense of blood and treasure, which, in our opinion, justify exceptional treatment in ap; preprinting the proceeds. In addition to tho 25 per cent, payable to the Now Plymouth Harbor Board, the county in which they are situate, in accordance with the legislation of last session, would receive 20 per cent, of the amount realised from the sale, while tho colony, which had already paid'so heavily for the land, would bo called upon to provide tho

means of constructing the main line of railway. We propose, then, to apply 15 per cent, of the 20 per cent, otherwise payable to the county, to the construction of the railway through the district. As the land will shortly be in the market, there will be a considerable sum at no distant date specially available for this work, which can be commenced immediately. The county will- in this way receive the whole of the 20 per cent., while the colony will be assisted in a work which will contribute so materially to enhance the value of property in the district, and to increase the financial resources of the county. Assuming these proposals to be approved by the Legislature, it becomes an important question, what is to be our procedure with regard to the works not already sanctioned ? The House will, of course, recognise the impossibility of coming to any conclusion on such a matter which can bo satisfactory to all. Each district in the colony believes that its claim to be provided with railways, at the cost of the State, ranks at least as high as the claim of any other district; and none, probably, will admit that any such claim ought to be met before its own. This, in truth, is a great difficulty, which the House, by its last legislation, has brought upon itself. The difficulty commenced from the moment when the Legislature repealed that cardinal condition of the Public Works policy, that in the event of the proceeds of any railway failing to meet interest and sinking fund on the cost of its construction, property in the'district should be rated to make up the deficiency. The difficulty is one which, I confess, i cannot solve. As things stand, the Government are desirous ,to distribute to the best advantage whatever funds may be available tor the construction of public works, and to do this as fairly as possible under the circumstances, we shall endeavor to carry on as nearly as may be simultaneously the various works that may be authorised, and to apportion the expenditure each year in such directions as shall seem most likely to promote the speedy settlement and beneficial occupation of the waste lands of the country. Much of the difficulty of the situation arises from the fact that here in New Zealand we are expected to do, in a few years, what it has hitherto taken centuries elsewhere to accomplish. A few hundred thousands of people are bent upon doing in a lifetime that which in the past has been the work of millions of men during generations. If New Zealand go onward as she is now doing until she reaches her first centenary, it is hard to decide which will then bo the “ Greater,” which the “ Lesser,” Britain. It is the remarkable progress we have made which readers us so impatient with regard to our future progress, and this impatience is for us an evil, against the possible effects of. which we must jealously guard. I need scarcely say that there are lines of railway in each island, besides those embodied in my proposals, the importance of which are fully recognised by the Government, and which we should have been glad to have included. The present proposals involve an expenditure of £1,677,000 a-year, until the lines mentioned are completed ; and if we can come to an arrangement as between ourselves —an honorable understanding, which ought to be held as binding as the laws of the Medes and Persians—that upon the completion of those lines a similar amount shall continue to be expended on productive railways only, it is a mere question of time when all the lanp throughout the colony which it is required to occupy and render available by means of railway communication, shall be so rendered available. By the time that the.railways now proposed are complete, we shall no doubt find that many branch lines will be undertaken by private enterprise. There are at present throughout the colony nearly 100 miles which are being taken in hand under'the provisions of the District Hallways Act of last session, and it is believed that by slightly amending that Act, advantage will bo taken of its provisions to a much larger extent, and the Government will thereby be relieved of constructing many lines which, sooner or later, must otherwise devolve upon it. I look upon this as one of the most gratifying features in. the future railway policy of Now Zealand. LOCAL WORKS. I must now solicit the earnest attention of hon, members to a question which may virtually affect the whole scope of the future policy of the colony, and which, in my belief, may largely influence the functions and the character of this House—l refer to the question of roads and bridges. Although the gradual extension of the railway system* is diminishing the extent to which money must needs be expended in such works, as compared with what was unavoidable in the past, there are still many districts in which such works will continue to be for years to come essential. I need not remind you that one of the great adwantages which was to be secured by the recent political changes was that the name of a road or a bridge was never more to be heard in this House as connected with any askings for money. Such, we were .asked to believe, was to be one of the first results of the abolition of the provinces. As it is, however, unless the House is prepared to make a decided stand, it is to be feard that roads, bridges, and culverts will become subjects of the most anxious and excited discussions to be heard within these walls. ' What then is to be our policy with respect to these works ? My colleagues and myself are clearly of opinion that they ought to be wholly devolved upon local bodies, by whom the requisite funds must he found. * - One thing seems to me to be beyond doubt or question : The colony must undertake all such works, or must refuse to undertake any. Any other course must bo brimful of injustice. Last session we passed various votes for’ roads and bridges, with the understanding that the amounts were to be provided out of, loan. Those votes will, I apprehend, have to be made good in any case. Many of them are uow in course of expenditure ; aud we propose to renew all the unexpended portions by putting them upon this year's Estimates. This will, in round numbers, mean the appropriation of about £102,000 for local works in the North Island, and about £166,000 for similar works in the Middle Island. Thereafter we propose to finally close the accounts, aud to confine public works operations entirely to railway construction. I admit that if we are sustained in this course it will be productive of hardship to those portions of the colony which were not fortunate enough to participate in the scramble for roads and bridges last year. It seems to me, however, as I have said, that, in fairness, wo have no middle oouiso open. If we are to construct arterial roads and bridges, we must take charge of all such works, aud subsidies in aid of them, which are now paid to local bodies, must cease. It is manifestly unreasonable to expect that the colony can go on paying, as it did last” year, nearly threequarters of a million to local bodies, if it has to perform the functions which devolve upon such bodies besides. One way out of the difficulty, perhaps, would be to increase the borrowing powers of local bodies. To this, however, many objections may bo urged. Some people are of opinion that the colony should raise the money, and leave the local bodies to expend it; but here, again, we should trample under foot a fundamental principle on which the new order of things was so recently based—.namely, That no money shall be raised by the colony the expenditure of which is not to be placed directly under the control of this House. For my own part, I have never believed that that principle ought to be rigidly and unreasouingly observed ; hut it was one of the cardinal points of abolitionism, and I presume it will bs adhered to by the present Parliament. Altogether, I confess that this is one of the moat difficult problems which we are now called upon to solve, and there can, in my opinion, he only one way out of two fair solutions—either the colony should close its bowels of compassion in respect of every application for roads and bridges, however exceptional may be the claim (and they are all exceptional in the opinion of the claimant), or it should distribute its gifts to all upon some equitable basis. As it is, unless we go into the moneymarket, there will be nothing to distribute over and above the subsidies already fixed. There remains, therefore, only the one solution, of every locality relying upon itself. I need scarcely say that, under all the circumstances of the ease, wo have been reluctantly compelled to turn a deaf ear’ to numerous aud pressing applications for local works throughout the colony. I omitted to observe that the two amounts above referred to are irrespective of a sum of £225,000 which is required to meet provincial liabilities, and £35,000 for roads in native districts. It will be recollected that last session a Bill was introduced, intituled the Settlements Works Advances Bill, the object of which was to enable the Government to open up lands for settlement before they were put up for sale. In many localities Crown lands are comparatively inaccessible, and unless they are, to some extent, opened up by roads, they are likely to remain unoccupied or bo sold below their value to speculators. This Bill, however, did hot become ; law, as the Government did not specify.the' precise localities in which the proposed expenditure was to bo applied. We intend to ask a vote of £58,590 for this object, full particulars of the proposed exponditiuo of which will appear iu the I’ublio

Works estimates. It is estimated that this amount will, at an average of 2s. lOd. per acre, enable upwards of 414,000 acres, in various districts throughout the colony, to be brought into the market, under -conditions which will largely enhance its value. It will be seen from the Public Works estimates that a considerable sum of money is required for expenditure on various public buildings throughout the colony. Among those to which I may specially refer is the Lunaiio Asylum at Dunedin, which is too small for the number of inmates, and which it is proposed to remove to a more suitable locality, being an extensive reserve ot 900 acres of Government land, the cultivation ot which on the part of the patients will, it is hoped, render the institution self-supporting, thereby relieving the State of a large 'annual burden which must otherwise continue to devolve upon it. It is proposed in the new establishment to make suitable provision for the cure ot inebriates j to enable which class of patients to be dealt with, some special legislation will be necessary.

It is also intended to erect upon the same reserve adequate separate buildings for the Otago Reformatory and Industrial School for boys and girls. The cost of this latter will be more than recouped by selling the property upon which the school at present stands. While on this subject it may not be deemed out of place to notice, that the hulk in Wellington Harbor belonging to the Public Works Department, being no longer required, we propose to have her fitted up as a Training School and Keformatory, into which boys convicted of criminal offences may be drafted from all parts of the colony, instead of their being associated with hardened criminals in the common gaols, or mixed with those whoso only crime is that they have been left destitute aud neglected. CONCLUSION. Much as the Public Works and Immigration policy has conduced to the prosperity of Now Zealand, there can be no question that if it is followed up as now proposed, the future results will very largely exceed those of the past. We know the extent to which railways have helped us to increase our settled population, our agriculture, and our trade ; and we know that for some of those railways wo have paid very dearly, not alone in money. But our experience, whatever it has cost us, should at least have taught us in what directions, and iu what manner, wo can best spend the money hereafter available for such undertakings. Not only ought we resolutely to resolve that we will never again sanction the commencement of a railway as to which we have not at least reasonable evidence that it will pay, but we should equally resolve that, as one point of our. experience, 10s. shall be made to represent as much work as 20s. have unfortunately in too many cases represented heretofore. Wo uow see clearly many things after which we could only blindly grope when we began to construct our railways ; we have many appliances that were then wholly wanting ; and we have in our midst responsible and capable contractors, for whom, at the outset, we had to go far afield. Iu addition, the prices ot materials are greatly reduced—indeed upon rails alone, the reduction is so great that, could we afford at once to purchase all we shall want far our contemplated lines, we should save probably £600,000, as compared with prices we have as a rule had to pay. Advantage has been, to a limited extent, taken of the low state of the market by ordering 10,000 tons of steel rails at £5 145., delivered at Cardiff. In expressing these opinions I desire to disclaim casting any reflection upon those who have hitherto had the professional overcharge of our public works ; if there have been blunders ‘ they have been chiefly incidental to circumstances, and to the nature of things—in my belief they have been more political than professional. I do not think that I need occupy the time of the House further.

Appended to the Statement are tables showing ; 1. Summary of Liabilities and Expenditure to 30tll

Juno, 1878. 2. Statement showing the Total Liabilities and Expenditure os Railways out ot Immigration and Public "Works Loan to 30tb June, 1873. 3. Statement showing tile Esdenditura on Railways to 30tll June, 1878—Classified. 4. Statement showing the Liabilities on Railways to

• 30th Juno, 1878— Classified. 5. Statement showing the Liabilities on Hoads and

Water-races to 30th Juno, 1878. C. Statement showing Liabilities and Expenditure on Roads, North Island, to 30th Juno, 1878. 7, Statement showing Liabihties and Expenditure on

Koads, Middle Island, to 30th Juno,' 1878. 8. Statement showing Liabilities, and Expenditure out of Consolidated Fund, for Repairs and Main* tenanco of Roads in Native Districts to 30th

June, 187 S. ' ». Summary of Liabilities aud Expenditure on "Roads in colony to 30th June. 1873. 10. Statement showing Liabilities and Expenditure for prospecting and developing coal mines. XL Statement showing Amount of Subsidies Autho-

rised, Paid, and Refunded, and Payments of In-

terest on Sums Advanced for Water-races. 12. Statement showing Liabilities and Expenditure for-Waterworks on Goldfields to June, 1878.

13. Return showing Amount Expended for Telegraph Purposes for year ended 30th Juno, IS7S. 14.. Return showing Liabilities and Expenditure for Telegraph Purposes 10 30th June, 1878. 15. Statement showing Liabilities and Expenditure on Public Buildings to 30th June, 1873. 10. Statement showing Liabilities aud Expenditure on Lighthouses to 30th June. 1878. 17. Statement showing Liabilities and Expenditure on Miscellaneous Public Works to 30th June, 1878. IS. Statement of Rolling-stock and Plant.

There are likewise reports from the Engineers in charge of Public Works, and the Commissioners of Railways, in both islands; annual report on public buildings ; report of Chief Inspector of Machinery/ report on lighthouse works; report on coal exploration and inspection of mines; reports on trial of native coal on locomotives —all of which embody much valuable information, and will no doubt be found both useful and instructive.

.1 conclude, air, by onco more commending to the approval of hon. members the proposals I have had the honor to submit. X have had pleasure, too, in submitting them, for in my belief they are calculated to meet the requirements of settlement over a great portion of each island. To give effect to them, will, I am convinced, be to increase enormously the prpductive power of the colony, and to do that the constantly growing tendency of which must be to lighten the public burdens. Under these proposals, our industrial population ought to be at least doubled during the next few years; and the great proportion of the incomers ought to be, and may be, so located that, while laboring lovingly to subdue the earth until that which is barren yields its kindly and natural fruits, they may labor stubbornly, because they are creating homes for their children, and proudly, because their names figure on no man’s rent-roll. It is in such a spirit that most of us have struggled to create a great nation in this favored land. Such was the spirit in which we strove through the day of small things ; and now, when our vision is clearer as to what we may do and become, and when our grasp is firmer upon, all that we undertake, X confess that I am jealous to have some share with those of whom it shall hereafter be said, that they had influence in promoting the prosperity and greatness of New Zealand.

The Hon. Mr. STOUT: With the permission of tho House, I have, as Minister of Lands, to make a short statement. In consequence of the various projected lines of railway through waste lands of the Crown, the Government have thought it necessary to advise his Excellency to withdraw from sale lands near those projected lines. This will prevent speculators taking up such lauds in the hope of reaping large profits from the increased value that will bo given to them through the proximity of railways! This withdrawal has been principally made in the land district of Canterbury, The Waste Lands Board of that district will have to consider whether advantage should not be taken of the provision of section 49 of the Laud Act, by which lauds increased in value by railways may be set apart, and be disposed of . as special value lands.