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The dimensions of tunnel and channel which the miners request to be constructed, consist of one main channel 37 chains long, and two branch channels each 13 chains in length, in accordance with plans and descriptions forwarded, I estimate these would cost about £8,500; but I have since been informed that branch tunnels would only require to be conjointly 15 chains in length, and if such is the case it would reduce the estimate to £7,100. However, I can only make an estimate on the plans and description which have been submitted. I would strongly recommend that a. subsidy up to a certain amount be given the miners to construct it themselves ; and to have nothing whatever to do with it beyond seeing that the work is constructed in such a manner that it will be durable in its nature, and give a permanent benefit to a sufficient number of the present claimholders, in order to finally settle the sludge-channel grievance ; and that such an amount of subsidy should not be given in money, but by allowing the miners a supply of water up to the amount of the subsidy, after the channel was constructed. This would be a guarantee, to some extent, that the grievance complained of was real, and that the miners had sufficient confidence in the undertaking to justify them in constructing another channel. Summary. To summarize: I would recommend that the question of priority of right, to use the sludgechannel be left as it stands at present; and that the new regulations be upheld, with clauses 5 and 16 suspended. And with regard to the question of increased channel accommodation: That the miners be subsidized to a certain extent in water, after the secondary channel is constructed. The Government to have nothing to do with maintenance, or any thing connected with its construction, beyond seeing that it is of a durable nature, and likely to afford permanent relief to such a number of the present claimholders as will settle finally the channel grievance. Heney A. Goedon, Mines Department, Wellington, lgth October, 1884. Inspecting Engineer.

Authority: Gbobgh Didsbubt, Government Printer, Wellington.—lBB4.