8.—6.

carried to the present point of stoppage by the end of March next, honourable members will see that three of the largest railway-works in hand at present are now within sight of completion—at least so far as the greater portion of the expenditure for them is required. With these three great works out of hand, the remaining lines can be pushed on with more vigour, and by an expenditure of a much larger sum upon them individually than hitherto has been possible. The colony can only set aside a certain amount tor the prosecution of new railways yearly, and it will be imprudent to increase the amount beyond what we are now spending, but I hope that the next few years will see a greater impetus given to the construction of railways, and there ought not to be any difficulty in obtaining the necessary amounts required for this purpose without going upon the London money-market. CHRISTCHURCH TO HANMER SPRINGS. In view of the early opening of the International Exhibition the question of speedier communication between Christchurch and Hanmer Springs becomes of importance, and it is proposed to establish a motor-car service in connection with our railways. ROADING IN BACKBLOCKS. Notwithstanding the unfavourable weather' experienced in many parts of the colony, fair progress has been made, and there will be provision in the Public Works Estimate for continuing road formation in the back blocks and newlysettled districts. Honourable members are aware that the borrowing powers of counties, under the Local Bodies Loans Act, are limited irrespective of the area and rateable value. The Government proposes to extend the power in the larger counties which are at present restricted in their operations. RAILWAY CONSTRUCTION. The work of railway construction has been steadily proceeded with throughout the year, the expenditure on new works under the control of the Public Works Department having amounted to £670,221. In addition to this, a considerable sum was expended by the Working Eailways Department on additions to open lines, and out of the " Hutt Eailway and Eoad Improvement" and " Eailways Improvements Authorisation Act " accounts. Full details regarding the work will be given in the Public Works Statement, but, in the meantime, it may be of interest to honourable members to take a forward look as regards the more important lines. On the North Island Main Trunk Eailway, the rail-heads at the north and south ends of the line will advance during the coming summer to within forty miles of each other, and work on the intervening section will be vigorously pushed on. A coachroad will also be completed, between the two rail-heads, so that it will be possible to travel overland from Auckland to Wellington by the route of the North Island Main Trunk Eailway. The completion of the formation, including the viaducts and bridges on the central section, and the laying of the rails thereon, may be looked forward to by the end of 1908. As regards the Midland Eailway between Springfield and Brunnerton, the position at date is as under:— On the West Coast side the line is open for traffic to Otira, and the section between Otira Station and the mouth of the proposed Arthur's Pass Tunnel is well in hand. Tenders for the tunnel contract were recently invited, but, as the response was not satisfactory, fresh tenders are now being called for. On the eastern side of the range the line is already open for goods traffic between Springfield and Staircase Gully. The Staircase Viaduct is complete, the Broken Eiver Viaduct is nearing completion, and the rails between the two viaducts are now being laid. My colleague, tho Minister for Eailways, hopes to be able to run passenger trains to the temporary station at Broken Eiver in November next. A coach road has been formed thence to the Cass, so as to admit of the through journey between Greymouth and Christchurch being

ii—B. 6,

VII