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Statement to be brought down later by my colleague the Hon. the Minister of Public Works. I am at present only concerned with the finance of the several undertakings. The expenditure on capital works for the last financial year may be summarized as follows — £ Railway construction, additions, and improvements .. 2,573,252 Main highways and roads .. .. .. 1,297,141 Hydro-electric supply .. .. .. .. 1,272,575 Telegraphs and telephones . . . . 625,540 Public buildings . . . . . . 605,747 Irrigation, land and river improvement .. .. 273,452 Other public works .. .. .. .. 177,983 £6,825,690 The expenditure on public buildings includes £368,479 for schools. In regard to expenditure on highways and roads, it was necessary to enlarge the scope of operations in the last two years in order to provide employment for additional men. Even so, the State expenditure for roading purposes out of both revenue and capital has risen from about £700,000 in 1923 to £1,945,000 in 1928. The expenditure out of loan accounts, which, as sbown above, amounted to £1,297,000 for last year, has almost exactly doubled in this period. The capita] expenditure on electric supply last year amounted to £1,272,575. which is a record for the account. It was, however, the peak year of the construction programme ; and after the current financial year, when the large works at Arapuni and Waikaremoana will be nearing completion, there should be a considerable decline in capital requirements, although a start is being made on a new scheme on the Waitaki River. LONDON LOAN, 1928. A further loan of £5,000,000 to be expended on public works during the current year was successfully floated in London on the Ist May last. The issue price was £94 10s. per cent., with interest at 4-|- per cent, per annum, which with a full halfyear's interest payment on the Ist November gave a return to investors of £4 19s. Bd. per cent., as compared with £5 os. lOd. from last year's loan, which was 5 per cent, at £99 10s. The cost of the new loan to the State, allowing for redemption of the discount and expenses over the period of 19| years, is £5 3s. sd. per cent, as compared with £5 4s. 7d. for the 1927 loan. The loan was subscribed nearly sixfold ; and this, in conjunction with the fact that the issue at 4| per cent, inaugurated a definite break from the 5-per-cent. rate which had obtained in London for some time, was a striking indication of our financial reputation in that great money-market. The comment on the issue in the London financial papers was very favourable. In terms of the authorities under which it was raised, the loan-money has been allocated as follows : — Public Works Fund, for railway-construction, tele- £ graph and telephone extension, &c. . . . . 3 ,000,000 Hydro-electric-power works . . . . 1,000,000 Railways improvement . . . . . . 1,000,000 £5,000,000 Along with this issue there was a conversion offer, to which I will refer later when dealing with the debt transactions.

Highways and roads.

Hydro-electric suppy.

London Loan, 1928.

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