D.—l.

WAYS AND MEANS. At the 31st March, 1907, the available balance of ways and means for publicworks purposes was £359,400, and further funds were received as under :— £ Balance of £1,000,000 raised under the Loan Act of 1906 ... 56,400 Amount raised under the similar Act of 1907 ... ... 808,200 Premiums received on sales and renewals of debentures ... 13,514 Transferred from revenue ... ... ... ... 800,000 Miscellaneous receipts ... ... ... ... 1,640 Making a gross total of ... ... ..£2,039,154 The ordinary expenditure of the year amounted to £1,881,564, and charges and expenses in connection with financing amounted to £5,027, thus bringing the total disbursements up to £1,886,591, leaving a credit balance at the end of the year of £152,563. For the current year it is proposed to provide additional funds as under:— £ Balance of 1907 loan ... ... ... ... 191,800 New loan of 1908 ... ... ... ... ... 1,250,000 Transfer from Consolidated Fund ... ... ... 800,000 This, with the balance brought forward, will give a total of £2,394,363. In addition to this there is an authority for £200,000 under the Post-Office Savings-Bank Fund Investment Act of last year for erection of post-offices, &c, making a total available ways and means of £2,594,363. The estimated expenditure for public works for the current year (excluding separate accounts having their own ways and means) amounts to £2,436,450, thus leaving a balance of £157,913 to be carried forward to next year. EAILW AY-CONSTRUCTION. The total expenditure on railway-works last year fell somewhat short of that of the previous year, but was still very substantial, and, with only two exceptions (1901-2 and 1906-7), was the largest in any one year for more than a quarter of a century. The total amounted to £1,279,809, made up as under:— £ Construction of new lines (Public Works Fund) ... ... 692,858 Construction of new lines (Waikaka Branch Railway Account) ... 36,609 Additions to open lines ... ... ... ... 364,068 Hutt Bail way and Eoad Improvement Account ... ... 46,221 Railways Improvements Authorisation Act Account ... ... 140,053 Total ... ... ... ... ... £1,279,809 I will now refer more in detail to the several lines that have been in hand, and the proposals of the Government with regard to each for the current year. Kawakawa-Grahamtown . Work on this railway has again been in progress in three places—namely, from Kawakawa southwards, from Hukerenui northwards, and also from Whangarei to Grahamtown; but, in view of the importance of closing up the gap between the north and south ends of the line, arrangements are being made to man the whole of the intervening space, so that in future this will be treated as one section. A largely increased force of men is now employed, and the work is proceeding vigorously. Tenders for the new deep-water wharf at Grahamtown will be invited shortly. Last year's expenditure amounted to £9,193, but the vote proposed for the current year is £40,000. Helensville Northwards. Considerable work has been done on this line since the last Public Works Statement was delivered. The section between Tauhoa and Wayby was completed and handed over to the Eailway Department for regular working in

III