D.—l

Its advantages are these : the work is not so arduous that it cannot be performed by any man who is willing to work ; if intelligently planned and carried out the effort will result in the creation of a definite asset, an asset not only providing timber-supplies for the future, but correcting many of the evils resulting from ill-considered deforestation of the past; afforestation is definitely seasonal work, and is thus complementary to seasonal necessity in the way of employment. RATIO OF EXPENDITURE. The ratios which the various types of activities of the Department bear to the whole are indicated graphically in the diagram below.

RAILWAY-CONSTRUCTION. During the last financial year a total length of 53 miles 20 chains of railway was handed over to the Railway Department for incorporation with the general railway system of the country. Details are as follows : — M. ch. North Auckland Main Trunk Railway (Whangarei Branch) 14 56 North Auckland Main Trunk Railway (Huarau-Waiotira Section) .. .. .. . . 15 36 Lawrence-Roxburgh Railway (Beaumont - Miller's Flat Section) .. .. .. .. 14 70 Orepuki Waiau Railway (Tuatapere-Orawia Section) .. 8 18 53 20 In addition to the lines handed over, rails have been laid on 22 miles 39 chains, and goods traffic has been carried on over a length of 52 miles, while traffic of all descriptions has been run by the Public Works Department over 111 miles 61 chains, the two principal sections being between Tauranga, The Mount, and Taneatua, and between Wairoa and Waikokopu. The schedule attached gives a complete statement of the work on railways now in progress, and the extent to which it is anticipated it can be completed during the next two years, assuming that sufficient financial provision will be available. North Island Lines. A concentrated effort resulted in 30 miles 12 chains of line between Huarau, on the North Auckland Main Trunk Railway, and Portland, on the Whangarei Branch, being handed over to the Working Railways Department in November last, and in a goods and passenger service being granted to settlers over the unopened line between Waiotira and Pukehuia, on the Northern Wairoa River. Good progress has been made with formation work and with erection of the several bridges on the Kirikopuni Section, including the large Wairoa River Bridge, which should be completed in about fifteen months' time, when it is hoped that the line will also be finished as far as the present terminus at Kirikopuni. Subsidences of embankments on some treacherous river-fiats on the Kirikopuni Section have

III