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Government sold them, so that they are now working their own on the line. The Government are now in this position : Their plant is all in the contractors' hands. Wanting to do some dredging in the harbour, they were compelled to place the matter in the hands of the contractors, who, of course, make their own price, and the Government, finding out that the plant was capable of doing far more work than was being done by the contractors, took occasion to increase the amount of stone to be delivered from 180,000 to 200,000 tons, but without tender and at the contract price. That should increase the work to be done, but under disadvantageous terms for the colony, and insufficiently to secure the early completion of the work. I know of these circumstances of my own knowledge. I have been consulted in reference to some of the arrangements. The result of all this is that the Government are now paying more for the works than previously, and the work is making slower progress. The contractors deposited £1,500 with their tender; but when they took over the work the Government handed over to them gratuitously explosives and tools worth between £2,000 and £3,000. I would suggest to the Committee that the production of fnis contract would be rather interesting. I have told you how the work at present stands under the contract let. At the present rate of progress it will take three years to complete both ends of the breakwater. If these were completed under the plans prepared by Sir John Coode there would be 25ft. of water instead of 18ft. This, of course, would open up the coal trade of New Zealand, and make the river navigable for very large steamers. The quality of the coal being so good, a very large trade outside New Zealand would soon be established. I think I have now said all I have to say in regard to the harbour. With regard to the Buller coalfield, it may be divided under three portions—viz., that from Westport to Waimangaroa River, from that to Ngakawau River, and thence to the Mokihinui River. The first section, bounded by the Waimangaroa, is now in the hands of the Westport Coal Company. There is one back section bearing the name of Hazelden, but I looked upon that as a dummy, because it is impossible to work it unless through the Westport Coal Company. Practically, the whole of the coalfield to Ngakawau is in the hands of the Westport Coal Company. It is true that the Ngakawau Company is working the old Albion Company's mine, but they will only get soft coal there; and it is very doubtful if that can be worked profitfibly, because other mines can get soft coal at a cheaper rate. The Ngakawau have some back country, where there is better coal; but, as the Westport Coal Company have all the frontage at Granity Creek, to reach this back country they would be compelled to make a railway up the Ngakawau Gorge—a most difficult and costly undertaking, not likely to be attempted. Dealing with the section beyond Ngakawau, we must first note that the railway stops there. At Mokihinui River, one party, which I represent as chairman, has a lease, and has expended about £26,000 in a railway and works connected with the river there : this is the Mokihinui Company. Two others have applied for large areas under lease : one is known as Cardiff, and the other is called Monaghan's Company. None of these companies have spent much capital on the ground. The Mokihinui are now getting a lightdraught steamer, in compliance with the terms of their lease, for the purpose of delivering co.al by Mokihinui. It will, however, be impossible for this company to enter fairly into the coal trade unless the railway is continued from Ngakawau to connect with the company's line. 1555. Mr. Izard.] What is the distance ? —About six miles and a half. 1556. Is it an easy place to make a railway ? —Yes. The line has been surveyed, and it has no difficulties, and should be very cheaply constructed. I may say that the Mokihinui people and a number of gentlemen interested in the coal trade have brought this under the notice of the Government, and have asked for some concessions and assistance for the construction of the line, but have been refused on the ground that it would be an injury to the interests of the public if such a line were held by a private company. The gentlemen interested have been promised that the question would be brought before P t arliament. There is a plan of the West Coast coalfields in Dr. Hector's report 1886-87, which I would draw the attention of the Committee to. This report shows the distribution of coal. The Committee will there see that the bulk of the coalfield lies between Ngakawau and Mokihinui. It is quite evident that the company which has a monopoly of the field to Ngakawau will not like to see others enter the field in competition. The Mokihinui Harbour has been inspected by the insurance companies, who reported it good and navigable for boats drawing from 7ft. to Bft., which is far too little for coal trade. I may add that I think it is impossible for the Westport Harbour to be properly utilised unless the railway is extended, because at present the coal supply is in the hands of a monopoly. I have a report on the Mokihinui mines [handed in] by Mr. Gordon, which I will place at the disposal of the Committee. 1557. Mr. Guinness.] Have you referred in your evidence to the construction of the Harbour Boards ?—Yes ; I have said that, contrary to the spirit of the Harbour Board Act, the Government have assumed entire control by placing the whole of the management in the Engineer; and also by placing Government officers to act as dummies, thus establishing a Board of false pretence to evade the law. 1558. Do you think it is in accordance with the spirit of the Act that the Engineer should be Chairman ?—The whole thing is an anomaly ; the whole working is astonishing. There appears to be no check—no public scrutiny—and the whole business of the Board is worked under the directorship of the Engineer. No person can get any information as to how the moneys are expended. My own opinion is that a very large expense is taking place at Westport to waste. 1559. It has been stated by the Minister for Puhlic Works that the works are being carried on with all necessary speed : in your opinion, is that so? —No. The very valuable plant there-, to a great extent, is kept unutilised. The work at present is costing more than formerly —in fact, more than it ever did—and is proceeding more slowly, because their hands are, so to speak, tied by a wretched contract. I have given an instance where the Board wanted to do some dredging, but, owing to their being tied down by their contract, extra money had to be paid really for the use of their own plant. 1560. Mr. Izard.] What time have the contractors got to finish their work? —I am not quite sure, but I think twelve months ; from the present time, about seven,

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