The Public Works Statement. (BY TELEGRAPH-OWN REPORTER.) Wellington, August 18.

Te Aroha News, Volume VII, Issue 292, 22 August 1888, Page 4

The Public Works Statement. (BY TELEGRAPH-OWN REPORTER.) Wellington, August 18.

Tub Hon. E. Mitchelson delivered hi s Public Works Statement,' in the House ot Representatives at a sitting held at 11 a.m. to-day.. He said :— Mb Speaker, — As the question- of tho public works of the colony is becoming in comparison with other questions of less and less importance as time 1 goes on, and as I think that tins is as ib should be, I propose to confine remarks on the ~ subject Cbhis morning within much narrower, limits than has usually been the case. Hifcberto'l-ailways in course of construction and '/.proposed included additions tcTopened-lines. On the subject of the railways in Course of construction and proposed it will.only be necessary to say a very few words.. The Government is distinctly 61 opinion that the present financial position-, of the" colony does, not warrant undertaking any! lailway works other than such as' 'will be- of airimmediately re productive^charaefcer, and. we have therefore deeided-to ! recommend to Parliament that with two exceptions; o»ly such amounts should iSe voted r this yea? as will enable us to meet- the liabilities llalready incurred, with a small sum over for supervision and contingencies. -The tiwo" exceptions are tho Woodville bo Palmerston railway, and the Otago Genfcral r&lway. -• On the Wood vilJe to Palm'drston railway, -in addition to the ainoimOehuired for! existing liabilities, authority Will 'he a^ked for £180,000 to enable a contract td be let- for the Pohangina'Bindge *- and, for the Otago Central railway i-im addition do Existing liabilities, an authority ."", for £35,000 will be asked "for, of which -£30,000 is for the completion of 'the' requisite bridges and othar works'up to,and across the Sutton stream, "and the .balance £5,000 for the formation *of- a- portion -of the Middlemarch section. The completion of the Woodville to Paltnerston • railway is consideied by the Government to be a work of the utmost importance, and a larger appropriation would now be- asked were it not that nothing' would' be gained by undertaking I any further works until the Pohaugina Bridge; has been put in hand. It is proposed," however, to ask for a vote next session for the whole balance of the loan'.allocation, ! and to then pub all the works in-hand which are required for the completion of this railway at snch times as will ensure theijc completion contemporaneously with the -Pohangina Bridge and the tunnel contract?. It is also intended next year to ask for a vote for the whole balance of loan allocation for the Otago Central railway so as -to enable the line up to Middlemarcli t6 be completed in two years from now.

RAILWAYS OPENED. The. total length of railways opened on 51^t, March last was, in the North Island 643 miles and 'in the South Island I,IOS tnilu> ; total 1,70 l miles. There weie also a i thab date 164 miles of railway in course of construction", of which 80 were in the Xoith Island, and 84 in' the South Island. The total expenditure on railways including co-t of provincial lines and purchase ot district railways, up to 31st March last, w;b 1.13,466,705, and the liabilities on the 31st March Ink £261,577, making in all £14,728,282 for lailways in course of conbtfiictiou as a whole. The amount voted Wt year was £460,600, of which £365,449 was expended ; and for this year, with liabilities* at the end of March last amounting to £247,951, we propose to ask for votes to the extent of £338>92G, leaving £S29 S 5lB for iu tui expropriation. •

PRESENT CONDITION OF WORKS. To proceed now bo detail the existing condition of each several line, as has usually been done in the past, would I think, under the present circumstances,be simply tedious. That such should be done where new works ai c proposed is no doubt very desirable, in order to enable hon. memberfc who may not all be acquainted with the several localities to understand the existing conditions of things as a first step towards realising what is proposed to be undeitaken. When nothing is proposed to be done, however, with the two exceptions already mentioned, beyond making progress and final payments on account of the works already contracted for, it seems scarcely necessary to weary the House with a recital of what these works consist ot in each several instance. Besides thi.=, the inter\al between this and my la?t Public AVorks Statement is &o short that the scope of the undertaking on the various railways, as there described, has not materially altered in the meantime. It i&, no doubt, desirable, however, for recurd purposes that a brief summary of the condition of each railway should be embodied in the Public Statement as usual. I have, therefore, had one prepaied which will be attached to this Statement as a supplement, and in the same supplement there will also be found some remarks which I -would wish to bring under the notice of hon. members on the subject of our railways generally, retrospective and prospective. In the case of all works other than railways, I propose to state the details in the usual manner.

ADDITIONS TO OPENED LINES. As mentioned in my Statement last session, the expenditure on additions to opened lines has been steadily decreasing, and the amount expended during the year ending 31st March last is a further illustration in the same direction. The amounts for the last few years were in round numbers as follows :— lBB4-5 £140,000; 188586, £91,000: 1886-87, £80,000; 1887-88, £38,000. This is exclu&ive of permanent, way,and if permanent way is included the amounts are, forlSS4-85, £183,000; 1885-36, £106,000; 1886- S7, £91,000; 1887-88, £41,000. The item of rolling stock 1 have not taken into account, as the proportion of rolling stock added was little if anything more than equivalents thelength of new lines opened during these years. For additions to opened lines the amount voted last year was £40,000, 0f which £3B,277 was expended; for the present ,year, with liabilities at the end of March last amounting to £15,625, we propose to ask for a vote of £65,000. Up to about five years ago the undeitaking& of this charactsr were undoubtedly rather lavish. No separate accounts had until that time been keep of works done in the shape of additions to opened portions of the railways asdistinct from new extensions. Towards the close of 1883, however, the matter engaged the serious consideration of the Government, and steps were taken to curtail expenditure of this class as much as possible. With that object accounts were opened in the books of the Public Works Dermrtment in order to chow exactly how matters stood, and my successor in office carried this reform a step further in 1884 by bringing down separate estimates and taking separate votes for this claes of works. By this means it was possible foi the first time to properly realise what wad being expended from

year to year upon such undertakings and to keep proper check upon them. It was not of courso possible to countermand undertakings which had already been entered upon, but great care was exercised to avoid any Unnecessary expenditure in the future, and I can vouch for it that certainly no expenditure of this class has recently been undeitaken which did not promise an immediate return for tho capital invested. Tho vote proposed for the present year includes the sum of £25,000 for tho purchase, of a stock of permanent "way"' to be held in hand for working railway's-i-equire-ments. This is intended to be drawn upon from time to time as may be necessary to provide foi tho requisiterenewals,andaseach draw is made there will be a corresponding payment of tho votes for working cxpensos into a suspense fund, and .purchases will thereafter be made out of that fund fco restore tho stock of rails. Thus, the £25,000 will always be represented partly in rails and partly in money. By this arrangement, two considerable advantages will be attained, (1) that the Working Railways Department will always have an assured stock of permanent \> ay located in tho most convenient manner to meet their requirements, which they can draw upon v ith certainty and without the inconvenience and cost attending upon transhipment, which have often been requisite in the past; and (2) that)- tho construction stocks and votes will not be complicated and disarranged by having to provide an indefinite quantity of permanent Avay at uncertain periods to meet working railway's requirements.

WORKING EAIIAVAYS. As regards fche working railways the annual report of the General [Manager will bo found to give full details of the traffic, revenue arid expenses, and ifc is &ati&factory to find that the ellicienb administration of the railways dm ing the past eight years has, by gradual improvement in the permanent way structures, appliances, and organisation, led to a corresponding economy in working. The total expenditure last year was lefcs than that | for preceding years, and the average cost of working per mile was the lowest that has ■ ever been. In these results there can be no doubtthattheßailwaysDepcirtmentdescrves a 2ieat deal of credit, as they could only have been brought about by careful organisation and patient supervision extending over a series of years. Still further improvements are expected during the current year, but it must not be supposed that economy can be indefinitely extended, as we havo already arrived at fairly good results, in view of the relative situations of our various lines, the character ! of the traffic on some of them, and the extent of the requisite renewals.

NEW ZEALAND RAILWAYS COMPARED WITH OTHER COUNTRIES. That this is so, can be realised from a careful study of table A, which will be attached to this Statement, and which shows the results of the working of the several railway systems of the adjoining colonies compiled from their official reports. This year the railw ay from Lyttelton to Sehvyn will have been open 21 years, and on this and others of the older lines rebuilding bridges and structures, and paying for new rails and sleepers is a heavy item of expense. Return No. 8 in the annual report on working railways, shows that the average cost of keeping the lines in order is under £70 a mile, apart from actual rebuilding of structures and bridges, purchase of hew rails and sleepers, and other new works. The same return also shows that the whole cost of maintenance, including such itero-s ib only £141 per mile. Fuitlier statistics complied on table A show that the average gross charge per ton of train* c on the New Zealand lineo is the lowest in the Australasian colonies, being only 6s lOd. This fact is due not so much to our mileage rates being low, as to the average distance cariied being shorter in New Zealand than in the other colonies, in consequence of our numerous chief - towns - und ports. Be the cause what it may, however, the produceis in this colony must as a whole derive an advantage as compaied with the producers in other colonies tiom this low average rate of cirriage from the place of production to a port, and the consumers in chief towns as a whole must have a corresponding advantage compaied with the con&umers in other colonies in the low a\erage rate ot carriage from the place of production to the place of consumption. At the Kime time it has to be remembered that our lailways cannot make as much protit out of this lower average late as the lailways of the other colonies can make out of their higher aveiage rate, even though they may have to carry the goods a somewhat longer distance for the aveiage rate which they got. The reason for this is that a large propoi tion ot the co&t of periorming each tian.saction is a consideration irrespective oi the distance cairied. Nevertheless if we are noc getting as large a revenue as we might do with higher rates, we gain a corresponding advantage in other ways by fostering pioduction and industries of all kinds. We must, however, await the growth of population before we can gain any large incieasc in traffic. Our railways in many cases have been carried into country without sufficient population, and cannot pay expenses in such places until settlement and production have advanced. In addition to the information regarding railway rates supplied in the reports of the General Manager on European and Ameiican llailway&(Parliamentary papeis D 2 and D2A of this session), there has also been laid on the table ot of the House this session a reprint ot a very impoitanfc Parliamentary paper on the subject of railway rates in the United States {ride Parliamentary paper D2B of 1888). These papers aie, I think, I well worth perusal by hon. membois as bearing on the question of our geneial railway policy.

ROADS. The next subject is roads of all classes. The length of roads and bridges constructel and improved out of the Public Works Fund last year was : Dray roads, North Island, 147 miles ; dray roads, Middle Island, 105 miles ; total diay road-*, 252 miles. Horse roads, North Island, 235 miles; hor»e roads, Middle Island, 71 miles ; total horse roads, 306 miles ; grand total of road:» of all classes, 558 miles. Bridges, North Island, 19 bridges, 1,337 feet ; Middle Kland, 7 bridges, 779 feet ; total bridge work in both Islands, 26 bridges, 2,116 ieet. The total length of roads constiucted and impioved in Lho colony generally out of Public Works fund from the commencement ot the Public Works Policy up to the 31st March last was as follows :—ltyay: — Ityay roads North Island 3,381 miles ; Middle Island 1,213 miles ; total dray roads 4,594 miles. Horse roads, North Island, 2,687 miles ; Middle Island 1,197 miles ; total horse'roads 3,884 miles; grand total of roads of all classes, 8,478 miles. Bridges, North Island 930 bridges, 49,576 feet ; Middle Island 161 bridges, 33,520 feet ; total bridge work in both Islands, 791 bridges, 83,105 feet.

ROADS NORTH OF AUCKLAND. On main roads, miscellaneous roads and bridges, and grants in aid of roads north of Auckland, the expenditure for the year ending the 31st March lasb was £3,138,

leaving a balance thus available out of the amounts provided for this class of work of the extent of only £730. Of this sum, £40 is due to counties under grants already made, leaving £692 available for further undertakings. The vote proposed for tho year is £300, leaving £432 for next year.

MAIN ROADS. Under tho head of "main roads" fcho work required to be done, which pi acfcically means the maintenance of material lines of communication passing through uninhabitod districts, is being gradually i-educed to the lowost possible limits. This is the more necessary as the funds available for such proposals out of public works loans aro very nearly at an end after noxfc year. Therefore it will bo nece&sary to provido out of the consolidated fund for the maintenance of such of these roads as cannob reasonably bo handed over to tho local bodies. Under tho votos of last year twolve of these roads were provided for, but in the votes proposed for this year tho number is rcducocl to .six. Those still retained aro Oxford to Rotorua, Tauranga to Napior (via Taupo). Kelson to Tophouso Farndalo (Nelson) to Wostport, Greynvuth and Hokitika, Haast Pass track .and Jlokitika to Christchurch, and one now item has been added, namely, for the maintenance during the present year of the voad.s recently constructed along tho North Island Trunk Railway. The amount voted under this heading last yeai was £18,650 of which £13,756 was o\ ponded, and for this year with liabilities at end of March last amounting to £5,311, we ask for a voto Cl5l, the whole of which, however, will not be probably be expended.

MISCELLANEOUS ROADS AND BRIDGES. For miscellaneous roads and bridges the amount voted last year was £34,500, 0f which £25,989 was expended, and for bhirf year with liabilities at tho end of March last amounting to 1"12,642, we propose to ask for a vote for £24,354. The principal items for which provision is boing made this year are main road from Wai kworfch to Kau akawa, completion of road in Bay of Plenty, restoration of Mangere Bridge, completion of road from Napier to Mmimutu, restoration of road from Lyell to Westport, bridges on road fiom Nelson to Reofton and G'roymouth, completion oi road through Peloius District and Rai Valley, continuation of toad from Kaikoura to Claience, irnpro\ ements in road from Chiit-tcluirch to Hokitika and bridge over the Clutha at Cromwell.

GRANTS IN AID. Tho grants in aid include roadt» under the Roads and Bridges Construction Act, subsidies to local bodies under the Finance and Powers Act, and provision for work for unemployed in roads. Under the Roads and Bridges Construction Act we voted last year the sum of £10,520 with probable credits to accrue £3,000, making the net vote £7,520, and as against this we expended in all £8,658 and received in the shape of credits £3,206. leaving a net expenditure of £5450. No new grants have of course been made for a long time past, so the liability of €3,104 existing at end of March last is tho only claim which wo have to meet. To cover so much of this liability as will fall clue during the current year after allowing for creditfc which will come in during the same period, the vote now proposed to be asked for is £2,000.

SUBSIDIES TO LOCAL BODIES. Under the Local Bodies' Finance and Powers Act, it lias now been decided that ifsubsidieb aie to be continued they must bo charged on consolidated fund, and no provision has therefore been made for them in the Public Works estimates of thihbebsion.

WORK FOR UNEMPLOYED. Under the heading of Work for Unemployed the sum of £10,000 was for the lasb linanaial year and, we propose to ask for the same amount for the current year. Of the £10,000 voted last year £5,361 was expended, and we had liabilities cabling at the end of Maich amounting to C 1,863. The €10,000 proposed for this year may possibly be more than will be tequiied, but ifc is thought better to provido sufficiently for any emergencies which may arise. No money, however, will be expended which is> not absolutely required. We have latterly been getting a very fair value for the money expended on this class of work, as the men employed have been fairly good labourers, and have been engaged \vhere\cr practicable on roads in the country districts and on railways and other woiks> of a reproductive character. The work is, gencially let in piece work contracts.

110 ADS TO OPEN UP CROWN LANDS BEFORE SALE. To open up Crown lands for the vciy impoitant work of cleaving and forming pioneei ioadb thiough Crown landh picpaiaboiy to .settlement, the expenditure last year was £61,448 and tho vote pioposcd for this yeai i& £50,000, leaving £33,512 for appropriation in succeeding years.

VILLAGE SETTLEMENTS. For village homestead settlements List year the sum of £20,000 was allocated under loan funds to meet the then existing eni agements, and of this sum £12,053 was expended during the year. There lemaincd, therefore, on 31st March last an unexpended balance of £60,147. Ot this sum. however, only about £45,000 will be required to meet the engagements now found to be due. This will leave 1)15,000 clear, which wo propose to ask Parliament to authorise the Government to expend on new (settlements. The vote proposed for this year is £20,000, ot which £12,000 is required for expenses incurred in locating, and for continuing the stipulated advances to the present suttleife, and £8,000 for further extension of the system if authorised to be extended an I have suggested. In addition to expenditure out of funds specially allocated for village settlements" the settlers have also had the advantage of its expenditure on roads in their district, and of votes for roads to open up Crown lands before sale amounting to £10,148. It will be necessary to continue to 'find similar work in the vicinity of many ot the settlements, in order to give the settlers a chance ot permanently establishing themfcelves. Moet of the settlements have, however, been now rendered fairly acce&siblo by roads and tracks, and the expenditure from the vote for roads to opon up Crown lands for sale cannot therefore continue to be reasonably applied to this purpose. It is proposed therefore that a vote should be asked for in the Supplementary Estimates to enable assistance to be continued, and in asking lor this vote the Minister of Lands will make a statement to the House on the condition of the several settlements and the amount of help that they severally require.

ROADS ON GOLDFIELDS. On account of roads constructed for the development of the mining industry the expenditure during the five years ending the 31st March last, has been in round numbers £311,000, and of this amount about £25,000 was expended during last year. The amounts required for the present and following years are £35,000 and £11,707 respectivelyand< hiswillexhausL Lhe loan fund at present available for this class of works. The £35,000 proposed to bo expended tnis year is required to coyer lia-

bililies at tho ond of March last amounting ip £13,575, and to complete roads on which large sums of money have been expended so that they can bo fully utilised.

WATERWORKS ON GOLDFIELDS. On account of waterworks on the goldfields, fcho expendiburo during the live years ending 31sb JMaich lasb, was in round nuinbors £32,000, ot which about £1,000 was expended during last year. Ifc is nob proposed bo undertake any new works of this character, bub thereby to complote some of the more- important works now on hand. The amount required to be provided for the present year is £755, leaving £229 for nexb year.

EXPENDITURE ON ROADS. An account of roads of all cladf>C£>, the amount voted out of tho Public Workh lund last year was £263,620 and tho amount oxponded was £219,519. For tins yea i 1 , with liabilities at the end of March last amounting to £120,670 wo propose to ask for votes to the extent of C 168,654. Thi& will lcavo under the prebent loan allocation £151,741 available tor appropiiation lor road works in succeeding yeais.

PURCHASE OF NATIVE LAND. Of the loan for Uic North Island Trunk Railway, 1 find that during the year ending bho 31sb Maich last, the purchase ol 210,000 acres on which large bums had previously boon advanced was completed at a total cost of about £40,000, equivalent to about 3b 9d per acre. This area includes some valuable auriferous land at Coromandcl. The expenditure during last year, including 1 15,072 recoveied from the voto for purchase ot lands along the North Island Trunk llailway, was £16,587, and the balance lemainin^ for expenditure under loan allocation last session is £14,485 ;of this amount 19000 is proposed to be voted for oxponditme during thu cuireut year, leaving L 5,485 fur next year. The object of the Government in regard to these land purchases has been, and still is, to uso every elloit to close up old transactions,. On many of thu-o in former yeaih laigo sums have been p.ud aivi itisleared in some cases tin own aw.v. bo tar as time and opportunity oiioi, the Native Land Com t will be moved to awaid the Crown an equivalent of land lor the money that has been paid and it it hoped thatsubstanbud ie-covoi-y will bo made with the assistance of the legislation piopobed during the current session. It is not the intention of the Ciovernmenti to undertake new purchases under bhib heading except in special cases whore it is very desirable in the public interest tfiat the lands should be acquired and wheie the} can be obtained at a. reasonable rate along North Island Trunk Railway. Coming now to land pui chases out oi the loan for the North Island Trunk .Railway, we completed during last yoar the purcha.-^e of 100,000 acres at a total cost ot 18,000 or about Is 7d per acre. The expenditure during the yeai, exclusive of £15,072 lepaid to the general land purchase Fund to recoup former ad\ ance-< was £9507. Ot the £100,000 taken fiom the North Island Main Tiunk Railway Loan and set apart tor the purchase ot native land along that line the sum ot £5,571 still remains available and it is proposed to be voted for expenditure during the year, and by the 31t>t Match next, as the result of the expendituie of this £100,000 it is estimated that a total area of 700,000 acres> will have been acquired. This would mean an average price per acie of about 2s lOd. No furthei land purchases along this line of railway can with advantage bo gone on with at present, bub we propose next session to ask tor authority to devote a fuither sum ot C 50,000 oub of the North Island Ttunk Railway Loan to this purpose, and if this is approved of by the Hou^e further very desirable land pm chases can then probably be made. By that time, we hope that title to the land in W.iikato diabrict along the line of railway will be .settled. The line runs thiough that block known as the Kohoe Potae tor 92 miles. This block, which contains) 2,638,000 acics, has been before the Land Court for over two years,, but the settlement of title has been delayed from time to time by unavoidable adjournments. For some months past the Court has, however, been making good piogress with the largo subdivision*,, and it i& expected that some portions adjacent to the line may soon be in a position bo be dealt with.

IMMIGRATION. As icgards immigration, as hon. members aie ali'cady awaic, the acceptance ot nominations within the colony ior passages was stopped on December 22nd, 1887. After that date no nominations were entertained, and the senices ot the immigration ofhceis and their stalls have been dispensed with. Since the date up to uhich intounation vab given in my last Public Works Statement, viz-, since the 50th November, 18.57, 623 souls have ai lived who had been nominated for pu^nges prior to 22nd December, and fcowaid the uoht of whose passages the &urn of £5,512 has been contributed by their fiicncltf in the colon). Since the same date 47 small lanneib ha\e also ai lived, Mith a sworn capital of £5,630. The total number ol this class introduced since the commencement of the system on the 28th September, JBB5, is 397, with a known capital of £43,785. The Agent-Ucneial, on the 17th May, informed all persons \\ ho had been nominated for passages that their nomination would would lapse unle&s taken advantage of within three months Jtrom that date. Outstanding liubiliiies in the colony and London up to 31st March, 1888, including cobt ol passages and incidental expen&oa up to that date, amounted to CB,OOO. Some small contingencies in connection theicwith will amount to £110, and a contribution proposed to be made towards the paosugo of some pcibonf in England who aro separated from their families hcie will amount to about £1,000, making in all £9,1J 0, tor which we now propose to ask for a vote. The total number of immigrants exclusive of small laimeis introduced since the inauguration ot the iinmigiat'on scheme by the colonial (Jo\etnment is 114,57b'.

TELEGRAPH EXTENSION. On account of telegraph and telephone extension the amount expended last year was £22,984, and tho amount proposed lo be asked for this year is ,C 2,000 leaving £8,370 tor future appropriation. Ot the expenditures last year £13,029 was on account ol telephone exchangos throughout the colony generally, and was piincipally tor matci ial imported for the purpose, the total capital cost of these oxchanges amountod on the 31st March, 1888, to £53,288. Tho work ot the year consisted principally of bringing a largen umber ol small villages in connection with the telegraph system by means of tho telophone. As set forth in table No. 8 accompanying this statement, tho most co&tly ot these tolophono connections vvcre to Patumahoo, Mangamahoe, Tologa Bay, Kumeroa, Clevedon, Cambrian, JBlackutone Hill, and Nightcaps. During last year also a telephono exchango was established at Blenheim. The only important telegraph extension work done during this year was tho erection of tho fifth wire on the main North lino, between Wpodvillo, Tahoraikc, and Waipukurui, ttiib being necessary for the pioper despatch of the largo business on the North Island wiros.

The further extension provided for in the estimates for tho present year include the erection of a tolophone exchange* at Greymouth and also the completion of Kaipara Heads line, the Middlemarch lino, and the line from Wairoa to Parua Bay.

x'UBLIC BUILDINGS. The principal public buildings in course of erection since tho last Public Workß Statement was niado, have been the construction of tho now frontage office, the roar extension of tho post oflico, and tho continuation ot tne piison woiks in Wellington, the construction of new departmental buildings, addition to Lunatic As>ylum and continuation of prison works in Auckland, and some additions to the Lunatic Asylum in ChrLstchurch. The amount voted for buildings last year was £109,105, of which £98,529 was expended, and for this year with 1 abilities ac the end of March last amounting to Ck!9,610. \Ve propose to a.sk for a vote of .£52,254. This will leave a balance of £69,637 of loan allocation for appropriation in succeeding years. As promised in my b atcinent ot last year tho cost of the roeioction of the Wellington I'ost-olHce has bccnpro\ided lor out of the consolidated fund, as lias also the cost of school buildings for this year with the exception of a small amount for liabilities existing on the 31&t March last. A beginning has also been made to gi actually throw the whole- cost of public buildings on tho consolidated funds by providing out of that lund this year for the construction of some of the ordinary departmental buildings required, in addition to school buildings, lisjTit houses, and haibour works. On ac count of lighthouses the amount voted last year was £4,800, of which C 2.866 was expended. For this year we propose to ask for a vole of £3,750, leaving £1,684 for next year. The amounts thus proposed to be asked for this year and next year with tho exception of £100 lor survey of Kaikouia Lighthouse, and £150 tor sundiics and contingencies, arc all for the Cuvior Island Lighthouse, that being tho only woik of the kind for which pro"v ision \\ as made in the loan allocation of last year. The necessity of erecting a lighthouse on Stephen's Island to reduce the danger of navigating Cook Stiait and of placing a coast light at the Kidnappers on the Eatt Coast has engaged tho attention of the Government, but as both woiks aic of a costly character it has been decided to allow them to stand over lor f utui c consideration. For harbour ay oiks provision is made in this yeais estimates, tho loan allocation 'or that class of woik having been exhausted by the vote of last year.

HARBOUR DEFENCES. Coming now to the subject of Harbour Defences, I find that the total cost of the Harbour Defences of New Zealand up to the 31st March 1838 has- been C 392,286, of which £52,231 wus spent on 64 pounder and 7 ton M.L. <runs, torpedo boats and icpoit by militiiiy engineer etc., prior to the w.ir scare of 1885, leaving in lound numbois £340,000 as the total cost of all accounts of land defences, and '•übmarine defences, equipments), aimaments, and material of war since the actual construction of the defence works bogan. The vote ior (lie year 1887-S was €80,000, and the expenditure £73,459, with liabilities at the end of the year £36 222, of which £3,145 was " for works, and £33,277 for war material. Of the total bum of €130,000 provided for harbour defences in the loan allocations of la?t session, there remains on 31st of Match last an unexpended balance of £36,541, which is proposed to be expended during the piesent year in discharge of the liabilities already referred to, and cairying on the "works. It is hoped that by the" end of March next, most of the unmounted new guns will be unplaced with magazines and submarine depots improved, po that both land and submarine defences may be ollective against any sudden emergency. To complete the works, however, to such a stage as would enable all the guns and other mateiials of war obtained at large expense from England to bo barely utilised would, making allowance for prison labour, entail .in expenditmo of C9,C00 in addition to the amount already piovided, while to place them in a state of fairly complete equipment would entail a further expenditure of about £2,000. There would be in all about £1,100 in excels of the amount already provided. In the carrying outof these works during the last ycai the Government have had the advantago of General Schaw's lepoits and advice as to the defences, and his gcneial co-operation towards their impiovement.

RATES ON NATIVE LAND. For rates on native lands fchc amount required as an advance for the payments, which will fall ducdming the cuirenbyear, is £11,500, and a vote for that sum will be asUod for accordingly. Beyond this amount no further piovi«ions is intended lo be made for these rates out of the L'ubhc Works Fund, the intention bo ng to piovido out of Consolidated Fund for .-uch further amounts us may be decided to bo expended. The balance remaining on loan allocation for this purpose has, therefore, been allocated to other servictb.

THERMAL SPRINGS. As regards our thermal springs, it is giatifying to observe that they are rapidly becoming of national importance as the iChort ot invalids fiom all quartern The waterworks at Rotorua have been complefed, and are in good order. An unlimited supply of water is thus available for the baths, and also for tho ornameutalfountuinsand grounds, and hydrants havo been provided in connection with the pavilion and other Government buildings a.s a safeguard against fire. At ohe Hannier Plain? the baths and ornamental arc ropoi ted to be in a very satisfactory condition, and tho increase in the number of \ ihitors is so great that an early addibion to the numbers ot baths will be necessary. At To Aroha, the number of \isitors attracted to tho Spa has so increased as to have had an appreciable effect on tho railway traffic. Details us to the extent to which the various baths are being used, and other information of a like- character will be found in the Crown lands ropoi t.

THE J.O AN ALLOCATION. On the .small .sptingb Uv>L session was £3,500, to which i'soo is now proposed to be added, making in ;ill £4,000. Of this amount £2,999 was expended last year, leivinp i'l,ooo for Mio cm rent year.

EXL'ENCITURE OF PUBLIC WORKS OF ALL GLASSES. The amount voted la.sb session was Cl, 128. 077, of which €966,159 was expended during the year. Of the amount thus expended C 440,554 was under part of the fund for tho \arious works and services therein provided for, C 152,315 was under part 2 of the fund for the North I&lanrl Trunk railway, including road works and native land purchase iv connection therewith, and £372,990 wa& under part 3 of the fund, on account of the various railways comprised thoroin

PUBLIC WORKS FUND. On account of railways in course of construction, as a whole the voles proposed to be asked for this year will amount to

£330,900 leaving £829,518 for future appropriation. Of theso amounts £75,240 and C 334.084 respectively, appeibain to the North Island Trunk Railway, and the balance, namely £263,660 and £495,534 bo other P> ail ways.

REMARKS ON OUR RAILWAYS GENERALLY. I would wieh to take this opportunity of making a few remarks on the question of our railways generally, retrospective and prospective. My object is to look back at what we have done during the last seventeen years, in order bo realise what wo have obtained for our expenditure in comparison with similar expenditure in other countries. In doing this 1 propose, lor reasons which 1 shall explain presently, to confine our remarks in the meantime to a comparison between the railways of Now Zealand and those ot Victoiia, New South Wales, and Capo Colony, taking in each case the latest data that we have got to hand. In New Zealand, as in tho other colonies, tho working railways milage, wo had in March JSBB, 1,758 miles ot railway, which cost Cl 3,352,978, or an average of C 7-595 per mile. In Victoria, they had in June, J BB7, I,SSO miles of railway, which cost £26,171,609, or an average of C10,92J per mile. In New South Wales they had in December, 1886, 188!) miles ol latlway which cost -€24,07], 454, oi an average ot £12,743 per mile, and in Cape Colony they had also in December, iiSttb" 1599, miles ot railway which cost £15, 130 616, or an aveiage of £8,837 per mile. These ate the actual figures as gi\en in Table A attached to this statement. But in oi dor to do full justice to the cases ot the colonies, as the} have greater lengths of double line than we have, I have calculated the ort,t per mile anew on the basis that each mile of double line is equal to two miles ot iailway. The several lengths, of double line are as follows :—ln: — In New Zealand, 6 miles ; in Victoria. 236 miles ; in New South Wales, 66 miles; in Cape Colony, 15 miks. This, however, is doing more than justice to the cases ot the other colonies, a<the cost of constructing a double line is nob in reality anything like double the cost of constructing a single line. On the basis of what 1 have assumed, however, the case stands as follows: — New Zealand, 1,764 miles, averago cost £7,570 pci mile; Victoiia, 2,116 miles, average cost £12,3GS per mile; New South Wales, 1 1)55 miles, average- cost, £12,313 per mile. Cape Colony, 1,614 miles, aveiage cost, £18,755 per mile. For the purpose of a moie simple comparison of the.se caso, I propose now to state on the basis ol the average price per mile in each colony, what the cobt would be in Victoiia, New South Wales, and Cape Colony respectively, ot a mileage equal to what we have in New Zealand, and stating the case in thai, way, the figures would be as follows :— " In NeV Zealand at our average cost per mile, 1,764 miles comes to £13 352,978 ; in Victoiia, at their average cost per mile, 1,764 mile would come to £21, 51 7, 152. In New South Wales, at their average cost per mile, 1,764 miles would come to £21,720,132 ; and in Cape Colony, at their a\eragecost per mile, 1,764 miles would come to C 15,443,829. From these figuies it will now be seen that if we had proceeded on the Victorian basis our railways would ha.ye cost us £8,464,174 more than they had clone, and similarly on the New South \\ ales banis they would have cost £8,367,154 more, and on tho Cape Colony basis-, £2,090,842 more ; and the question which has arisen in my mind for consideration is whether we would have been bettor or worse oil if we had adopted any of these bases ot construction rather than the one which wo have adopted. The tirst aspect of the matter which naturally strikes one in this connection is, what has Victoria gained for its t8,000,000 extra cost, and New South Wales for its £5,000,0u0, and Cape C olony for its £2,000,000? Presuming that in each case the railways fulfil the requirements of the existing tratlic, the advantage or disadvantage ot a more expensive class of line will iest mainly on the relative cost of its maintenance as compared with the maintenance of line having structures ot a cheaper and more perishable character, and it is on this basis that I propose to examine the several cases. In applying this tesb of bhc relative cost of maintenance, however, it is, of course, necessary to bear in mind the fuct that before it can be properly applied the lines must all have been in existence for a sufficient time for the renewals of structures on the cheaper class of line to have become general, and to have got, in fact, into such a condition that they are unifoim year by year, and not liable to peiiodical culminations or fluctuations to any great I extent. 1 believe that the New Zealand railways, as a whole, have already got into this condition, and I think, theiefoie, that a comparison may be fairly made as between them and the more expensive class of liens with which I am now comparing them. And I should here explain that it was for this reason I have selected the Victorian, New South Wales and Cape Colony railways for comparison rather than the cheaper railways in Tasmania and elsewhere. The conditions governing working expenses as a whole and the relation of working expenses to revenue are so intricate, depending upon the situation of the linos, the character of the traffic, the gradients, and the taritf rates, etc.. that it is scarcely possible to make any intelligible comparison on that basis. The relative cost of maintenance, however, is nob sucli an inbricafce subject, because tor similarly constructed lines where rates of wages and pi ices of materials are about equal, the cost of maintenance with reasonable speed should depend almost entirely on the train mileage. When once a railway has gob to such a stage that the cost of maintenance becomes uniform, the matter of permanence or otherwise of the .structures becomes practically eliminated out of the question, and the only matter for consideration is whether the inteiest on the extra cost of the more expensivo line is greater or less than the extra cost of maintenance of the cheaper line. This is, of course, presuming, as already stated, that in either case the railway is gfood enough to fulfil the requirements of the existing traffic, and also bearing in mind that we are speaking of colonial railways, where high rates of speed are not required or justified by the circumstances of the case. If the more extensive class of line does not show justification for its cxbia cost by a corresponding saving in working expenses on this basis, then its extra cost is nob justifiable, as every expenditure beyond what isrevenue-producingorlabour-saving is merely luxury andexbravagance. The gauge of the Victoria railways is sfb. 3in., of the N.S. Wales railways 4ft. B£in., and of the 1 Cape Colony railways sft. 3in., as against a guage of 3ft. 6in. in New Zealand. Bub this cannot affect the question at present under consideration in any way, unless it can be shown bhat a guage of 3fb. 6in. is insufficient for the requirements which have to be met. The cost of maintenance per mile per annum ot the various railway systems as shown in the Table A is:— In Now Zealand, £141; in Victoria, £170 ; in New South Wales, £242 • and in Cape Colony, £144. These, as in the former case, are the actual figures in table A.- They are basod, as is customary, on tho average mileagej open, during the year, which isshown in tho third column.' u Of two- miles '

of railway, they would become as follows :—: — New Zealand, £141 ; Victoria, £150 ; New South Wales, £233; and Cape Colony, £143. This is, however,* again giving the railways of the other colonies the advantage as the cost of maintenance of a double line for a given amount of traffic, is little, if anything, greater than that of a single line. On this basis the total cost of maintenance -per I annum in the several colonies, for a miloage' equal to what ye have in New Zealand would be as follows : — In New Zealand, 1,749 miles at £141 per mile, £246,340 ; in Victoria, 1,749 miles at £150 per mile, £262,359 ; in New South Wales, 1,749 miles at £233 per mile, £407,517 ; and in Cape Colony, 1,749 miles at £143 per mile, £250,107. Referring again to table A, we find that the train mileage for the years under consideration were in the respective colonies as follows :— New Zealand, 2,944,786 train miles; Victoria, 7,991,378 train mile& ; New South Wales, 6,479,265 train miles ; Cape Colony, 2,522,149 train miles. Those are the total train mileage for the several railway systems irrespective of the length of the several systems ; converting them for the pvrpose of comparison into train miles per mile of railway, they become as follows,:— New Zealand, 1,684 train miles per mile of railway : Victoria, 3,9-12 ; New South Wales, 3,491 ; Cape Colony, 1,563. In this calculation the nnUu^c.% taken as before, have been the average mileage open during the year with length ot double line added. Fiom (.hi-, data, the following results are deductible by simple proportion : — First, taking the case as between Victoria and New Zealand. If our railways had been constructed on the Victorian" bd&is, with bridges and other structures of the more durablecharacter.obiainingthereour charge for maintenance last year on the base of the relative train mileages the co&t of maintenancein Victoria woulxl havebeen£l34,266 lehs than it has been, but as against this we should have had to pay interest on £8,464,000 additional capital which, at say 4 per cent., would have come to £338,560. It would appear therefore that we are better oil' by £204,29 1 per annum than if we had built our railways on the Victorian plan. Similarly, on the Ne\.|South Walfe babi-3, our charge for maintenance last year would have been £49,761 less than it has been, but a- against this we should have had to pay interest (on additional capital ot C 5,367,000), 367,000) to the extent of £334,680. Wo would, therefore, appear to be better oil by £284,919 per annum than if we had adopted the New South Wales plan. Similarly agaiu on the Cape Colony basis our chaige tor maintenance last year would have been more than it has been by £23, 129, and in addition to this we should have had to pay interest on additional capital of £2,091,000 to the extent of £83,640, so that we are better off by £106,769 per annum than if we had adopted the Cape Colony plan, in considering the cost of our rail ways* ab a whole, there is also an item which should not be foigotten, viz., that this cost includes the Lyttelton Tunnel, which is the largest undertaking of *he kind in any of the Colonies, It would seem evident therefore, that we have acted wisely in New Zealand in adopting the cheaper class of railways*, which though cheap, are nevertheless adequate to our requirements, and it i& al.-o evident from the low cost of maintenance that we must have had good work done in the construction of our lines, and that the supervising of their maintenance has been careful and painstaking. All that we require, therefore, is further agricultural development and consequent increase of traffic in order to produce from our railways a handsome dividend." The Minister of Works then went on to compare our lines with the cases of the colonies having cheaper railways than ours, arriving at the conclusion that, "It would appear that while we have the advantage as compared with the railways which are more expensive than ours, those railways, on the other hand, which are less expensive than ours, have the advantage over us. It seems probable, however, that in the case of the more recent Tasmanian railways they have carried economy in construction to an extreme, and that their maintenance in future years will not probably be so cheap as it was last year, while the lines were new. The first 45 miles of their railways cost on the average £10,344 a mile, while the later SS miles cost only £4,623 a mile ; and concerning these later lines their general manager, in his reports of 6th July, 1887, says : " Whilst our working expenses have fallen to a satisfactory state both per mile open and per train mile, I am constrained to observe that there is a probability of an increase in this direction on new lines. The economical construction of the railways have necessitated steep grades on most of the lines which will militate against a profitable working, should the traffic increase as anticipated. The gauges of tLe last series of railways which I have been alluding to are as follows (but as before stated the relative gauges cannot affect the question at present under investigation) :— ln New Zealand the gauge is 3 feet 6 inches. In South Australians sfeet 6 inches for about 400 miles, and 3 feet 6 inches for the remaining 930 miles. In Queensland it is 3 feet 6 inches, and in Tasmania it is both 5 feet 3 inches and 3ft. 6in. (by means of a central) for about 45 miles, and 3ft. 6in. for the remaining SS miles. In view of all these facts I am convinced that die proper principle for adoption in a young colony like this is to construct our railways from time to time in such a way as to march along with but not outpace the requirements of the existing traffic. In that way the real requirements of the country will be provided for as they arise. Lavish expenditure on stations and other works in anticipation of traffic which may never ensue will be avoided, and the burden of the interest on the cost of construction will fall gradually upon the country, as it grows able to bear it instead of being imposed on before its time in the shape ot a dead weight of taxation on account of expenditure for which there is no adequate return. jVIy remarks in this direction have been to some extent prompted by what has struck me as a tendency which has recently been growing up to build our latest railways of a much more expensive character than was adopted for our earliest lines, or m other words to construct our new extension of the character up to where it has been found necessary to bring the older railways, and I think myself that this is a mistake as there is clearly no necessity to construct new railways which are of - the character of pioneer lines through comparatively uninhabited country of as' high a class as the existing lines in populous districts, where large traffic has been already developed. I would recommend, there fore, 'if we are to further extend our railways in the future that we should revert to the less expensive type of railway originally adopted, bearing in mind that these cheaper railways (provided that road grades are obtained in the first instance) can readily be improved and further equipped from time to time so as to mccc all the requirements that aio likely to arise, and I should gather from the fact which I have adduced inthis connection that such railways 1 as- are required in" the shape ot

new extensions - should be produced . in average country at a cost not exceeding £6,000 a mile. The conclusions which I have arrived 'at on the question may be concurred in or they may not, but in either case I do not think that I need apologise for having introduced the subject, as the question of the scope and type of our railways is, to my mind, Che most important question which can engage the attention of the Colony in connection with its public works. The determination of such questions as this, in fact, necessarily affects the whole of our present and future policy in connection with railway construction, and as it is the determination of such questions as this with wisdom or otherwise which makes or murs the fortunes of private companies, so much determination must, to a great extent, go towards piomoting or retarding the welfare of a colony.

WORKS ESTIMATES. The Works Estimates show the following reductions in the head office :—Undersecretary, £800 to £700 ; Assistant Undersecretary, £401) to £375 ; Accountant, £425 to £400. The Engineer-in-Chief, £SOO, ceases March next ; Assistant Enginner-in-Chief, £SOO to £7.30. The salaries of all District and Assistant Engineers are reduced. The funds a\ailable for public works as irom the 31st March last are as follows : Part 1 comprising immigration scheme, small items of railway roads of all classes except roads along "North Island Trunk Rait way, waterworks on gold fields, purchase of native land, North Island, except lands along North Island Trunk Railway, telegraph extension, public buildings, lighthouses, harbour works andharbourdefences, rates on Native Lands and Thermal .Springs, a total of £652,126. As against this the amount proposed to be expended during the present year including £205,323 liabilities at the end of March last is £374,555, which will leave £277,571 available for appropenaticn in succeeding years. Part 2 for the North Island Trunk Railway, including road works and Native Land purchase in connection therewith, amount available for exdenditure from March 31 was £522,000 and as against this with liabilities at end of March amounting to £75,904, we propose to expend £135,711 during the present year, leaving £386,289 for appropriation in succeeding years. Part 3. for railway works generally with the exception of the Nortn Island Trunk Railway, and the small items of railways included under part 1, taking credit for the additional £500,000 recently floated we had available for expenditure from 31st March last the sum of £696,245, and as against this with liabilities at end of March amounting to £199,468, we propose to expend during the present year the sum of £352,541, leaving £534,704 for appropriation in succeeding years. Taking the Public Works fund as a whole therefore we had available for expenditure from 31st March last the sum of £2,010,371 and as against this with liabilities at the end of March last accounting in all £471,690. We propose to expend during the present year the sum of £862, 8271, eaving £1,267,654 available tor appropriation in succeeding yeart. With regard to the item of £70,000 which was originally intended for immigration, but which was " unallotted " in the Loan Act of this session, it may be necessary to give some explanation. As honourable members are aware, a considerable amount of expenditure and liabilities have already been incurred in respect of immigration before the House decided last se&sion that immigration was to cease. A sum of £25,000 out of the £80,000 unallotted has therefore had to be allocated to immigration to cover the expenditure and liabilities thus incurred, and a further sum of £10,000 has had to be allocated towards covering the costs and chai'ges of raising a portion of the rscent loan, the amount previously allocated to this purpose having been found to be insufficient.

ABOLITION OF WORKS DEPARTMENT. It is proposed to do away with the Public Works Department, as "indicated in the Financial Statement of my colleague, the Colonial Treasurer. On the subject of the Chief Commissioner for Railways, communications with the Agent-General have nob yet beon brought to a close, bub we hope to hear finally from him very shortly, and will then set up the Commissioners without delay.

CONCLUSION. 1 have now, sir, come to the end of my statement. I would wish to thank the House for patient bearing which it has vouchsafed to me whilst my task has not been the pleasant one of proposing an active prosecution of public undertakings such as a condition of general prosperity would demand, and notify I have at last the satisfaction of feeling that our proposals are bounded on a careful and well considered view of the necessity ot the undertakings proposed I am, at the same time, confident that our means of securing sound condition of affairs will be found in bringing the Public Works expenditure within reasonable compass, and conducting it on a scale in proportion to the means of the colony. The usual reports by the several permanent officers of the Department will be attached to this Statement, and also the usual tables showing <sost of works and result of work ing railways.