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Statement of Accounts (as required by Section 10 of the Rangitaiki Land Drainage Act, 1910) for the Year ended 31st March, 1913. Receipts. Expenditure. Ist April, 1912. £ s. d. 31st March, 1913. £ s. d. To Balance—Cash in Public Aooount .. 14,180 910 By Expenditure— Payments for liabilities of old Board— 31st March, 1913. Redemption of debentures .. 2,000 0 0 Rates received under section 7of the Interest on debentures .. .. 100 0 0 Rangitaiki Land Drainage Act, 1910 1 7 (j Contracts let by old Board .. 219 5 7 " Thirds," &c, received under section New works by contract and day 9of the Rangitaiki Land Drainage labour .. .. .. 7,184 511 Act, 1910 .. .. .. 020 ."> 1 Purchase and maintenance of dredges 5.509 11 5 Advance made by New Zealand Travelling allowances and expenses, State-guaranteed Advances Office 10.000 0 0 camp allowances, and general administration expenses .. .. 190 3 1 Balance—Cash in Public Account .. 7,914 8 2 Advances in hands of Government officers .. .. .. 1,684 6 3 £24,802 0 5 £24,802 0 5 Loan Account. 31st Maroh, 1913. £ s. d. 31st March, 1913. £ s. d. To Balance .. .. .. .. 34,293 15 0 By Advances made by the New Zealand State-guaranteed Advances Office— No. 1 Loan—Balance .. .. 24,293 lo 0 No. 2 „ „ .. .. 10,000 0 0 £34,293 15 0 £34,293 15 0

REPORT OF THE LAND DRAINAGE ENGINEER. Sir — I have the honour, in accordance with the provisions of the Rangitaiki Land Drainage Act. 1910, to report upon the various operations carried out during the past financial year. These works are now well in hand, and the benefits that will result from the scheme of drainage are fast becoming apparent. The country (particularly the southern half) is being rapidly unwatered and turned into pasture land, a noticeable feature being the sweetness of the country and the ease with which it is " brought in." Settlers are as yet mostly engaged in cattle raising and fattening (the swamp being already noted for its fat bullocks), but the whole area must eventually become dairying-country. A cheese-factory has already been opened on the co-operative system, the supplier* being all swamp settlers, and the butter-factories at Matata and Whakatane are each drawing supplier, of cream from settlers on the swamp lands. Owing to the slow progress and eventual abandonment of the Rangitaiki River diversion contract, let to Messrs. Rich and Jeffreys, and the various unavoidable delays that occurred in procuring the necessary dredging machinery, little actual work has as yet been done on the main outfalls. However, as will be seen hereafter, works are now well in train, and, judging from results obtained from the minor works executed, I am expecting big changes during the coming year, and look forward with more confidence than ever to the ultimate complete success of the scheme. Priestman Dredgers. As mentioned in my last report, the Department, realizing the inability to let certain works by contract, decided to install the necessary machinery and carry out its own work. Accordingly two grab dredgers were ordered from Messrs. Priestman Limited, England—one by letter in November. 1911, and the other by cable in January, 1912. Unfortunately, before these orders were completed the 1912 epidemic of strikes started in the Old Country, causing a most unlooked-for delay of eight months in completing the order. However, these machines have now arrived, being transhipped from Auckland by auxiliary scows. One was landed in Whakatane at the end of January last, and was safely carted some eight miles back into the swamp to Mangaroa, duly erected, and is now in commission on Te Rahu-Mangaroa outfall. The other was landed in Matata some three weeks ago. It was primarily intended for the Tarawera River improvement-works, but, owing to the abandonment of the Rangitaiki River diversion contract, it was decided to start the plant at the " outlet," this being the more important work. No time was lost in towing the plant some nine miles up the Rangitaiki River to the site of the works, and it is now erected and a start made with the excavation. These are most efficient plants of the latest model, and I am hoping to be in a position to report their good progress in my next annual report. Tarawera River. The Hammond pony bucket dredge has been engaged throughout the year on the Tarawera River improvement-works, cutting off bends and generally enlarging and improving the channel. Failprogress has been maintained, considering the difficulties to be contended with. Some 31,486 cubicyards of spoil has been excavated, at a cost of 4|d. per cubic yard. The old bend has been cut and the old channel is completely silted up. The second cut is well in hand, and when opened up will effect a lowering of approximately 18 in. in the water-level. I still feel confident that our estimate of lowering the surface level of water in this river by 1 ft. per mile for the first five miles will be accomplished.