D.—l.

The money already provided for this railway under loan of 1886 will finish it from Eomahapa to the Ahuriri Flat, and will also complete the formation for 2 miles further. The rate of expenditure proposed is, for this year £12,000, and for the next two years £15,000 and £10,398 respectively: making in all £37,398, which was the total balance of the allocation of 1886 on 31st March last. EIVEESDALE-SwiTZEES. On the Biversdale-Switzers Eailway the rails are laid from Eiversdale to the Mataura Eiver, a distance of 2 miles, and the formation, exclusive of bridges, is constructed for 5 miles further, and the contract survey is completed throughout. The total length from Eiversdale to Switzers is 14 miles. The balance of the allocation for this railway, under loan of 1886, is only sufficient to complete it with permanent-way, &c, from Eiversdale to a point on the north side of the Mataura Eiver, a distance of 3 miles, and to do the formation from thence to the Switzers Township, 11 miles further. It would require a further sum of £15,000 to complete it altogether, and this amount the Government does not see its way to provide out of the loan at present proposed, as there are so many more promising undertakings which also require to be completed. It is therefore merely proposed to go on with the expenditure of the funds in hand for this line so far as they will reach. The rate of expenditure proposed is, for this year £3,000, and for the next three years £5,000, £5,000, and £6,646 respectively, which makes up the total available at 31st March last, viz., £19,646. Seawaed Bush. The Seaward Bush Eailway is completed and opened for traffic from Appleby to Waimatua, a distance of about 5 miles, and from Waimatua to Oteramika, length about 6 miles, the work is in progress by the " unemployed," and expected to be finished about the end of March next. From Oteramika to Waimahaka, 12 miles, the contract survey is completed, but no works have as yet been put in hand. Total length from Appleby to Waimahaka, 23 miles. The balance of loan of 1886, together with £10,000 (including £5,000 for rails) proposed to be allocated under loan now contemplated, will be sufficient to finish the line for traffic to Oteramika, and, if the allocation proposed is approved of, the work can be completed by April or May next. The rate of expenditure proposed, exclusive of amount required for rails, is £5,000 for this year, and £2,508 for next year : the total funds available for construction works as at 31st March last, including additional sum now proposed to be allocated, being £7,508. Lumsden-Maeaeoa. The Lumsden-Mararoa Eailway is completed as far as it is contemplated to carry it at present, being open for traffic from Lumsden to Mossburn, a distance of 10J miles. Edendale-Foeteose. The Edendale-Fortrose Eailway is completed and opened from Edendale to Wyndham, a distance of 4 miles, and the formation is finished for 3| miles further. A contract has also been let for another 2 miles, including a tunnel 10 chains long. This brings the line to the crossing of the main road at Glenham Homestead. It is estimated that the tunnel-works will be finished by about the end of March next. The total distance from Edendale to Glenham is 9J miles. From Glenham to the Waimahaka Valley, 9 miles further, the contract survey is completed, but no works have as yet been put in hand. The money already provided under the loan of 1886 will complete this railway to the crossing of the main road at the Glenham Homestead, already referred to, and it is not proposed to carry it any further at present. The rate of expenditure proposed is, for this year £9,000, and for next year £18,656, making in all £27,656, and it is hoped that the line will be completed to Glenham by about March, 1889.

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