D.—-2a

6

congestion, which is almost of daily occurrence, is such as to make it impossible to obtain the same standard of results in respect to economy as would be practicable if proper accommodation and improved facilities were available. Notwithstanding the fact that a number of modern machines have been installed in the more important work-shops during the last five years, much of the present equipment, being slower than modern machines, is incapable of turning out the quantity of work that could be dealt with by up-to-date machines. £108,000 is included in the schedule for the purchase of machinery, and it is essential, in the interests of efficiency and economy that the expenditure be authorized in order that new machines may be installed when the workshops are being electrified. it will be necessary in the not-distant future, owing to the limited capacity of the existing workshops and the impossibility of enlarging them to any material extent, to give serious consideration to the question of erecting a central workshop in each Island with up-to-date equipment for building new locomotives, repairing those in service, and for the construction of new cars and wagons, a portion of the present workshops being retained for carrying out repair work only. It is estimated that a saving of at least £8,000 per annum in overhead charges alone would be effected by the establishment of one central workshop in each Island, while the output of rolling-stock would be greatly increased, and the works standardized to a far greater extent than is practicable at the present time ; also, a reduction in the cost of output would be assured. Electric Lighting . The electric lighting involves the provision of lighting at 261 stations, to cost in round figures £50,000, and 890 houses, to cost in round figures £24,000. viz. :— Stations. Houses. Auckland district .. . . . . .. 29 77 Ohakune district .. . . . . .12 114 Wanganui district .. .. .. 34 110 Wellington district . . . . . . .. 57 231 Greymouth district . . . . .. . . 5 10 Christchurch district .. . . 65 175 Dunedin district . . . . . . . . 8 41 Invercargill district .. . . . . 51 132 The order in which it is proposed to undertake the works is indicated by the annual allocation of the funds shown on the schedule, and the intention is as far as practicable to cany out the works in the order shown. It may, however, be found in actual practice that the supplies of labour, material, and other essential appliances for carrying out the works may render it necessary to vary the order to some slight extent to enable the best progress to be made and ensure the maximum of economy in carrying out the operations. The arrangements made will, as far as practicable, provide for a certain number of stations and houses in each district being put in hand each year, so as to reduce to the lowest possible limit any cause for complaint, the most important stations in each, district receiving first attention. The new houses erected for the staff in the various localities are wired in anticipation of electricity being available in the near future, but where supplies are available and the houses are completed connections will be made at the time. Electrification op Railways. As indicated in my annual Statement, Government is obtaining a comprehensive report in connection with the suggested electrification of the suburban sections at the four main centres from Messrs. Merz and McLellan, Consulting Engineers, of London. .