D.—l.

in both cases. At the Mohaka Viaduct site a camp was erected, stafl installed, and plant and materials are coming to hand in readiness for the early prosecution of this important undertaking. When the year closed the preparatory work was well in hand, and a start had been made on the erection of the towers for the cable-way which will be used for placing the steelwork. Westport-Inangahua Railway. The Te Kuha - Cascade section has been maintained during the year by the Department to handle the coal traffic from the Cascade Mine. Apart from this maintenance no other work was carried out during the period. South Island Main Trunk Railway. No constructional work was carried out on this line since my last report; only a very limited amount of maintenance has been carried out, and surplus material has been disposed of as opportunity offered. The completion of this line has now been authorized by Cabinet, and work on accommodation was commenced almost immediately after 30th June. A large amount of new plant has been ordered so that a vigorous and progressive policy of construction may be put in hand.

IRRIGATION. CENTRAL OTAGO. Operation and Maintenance of Irrigation Schemes. As shown in the table below, there are now thirteen schemes in operation on a trading basis. The total area irrigated during the season was 43,847 acres, water being supplied to 4.59 irrigators. The corresponding figures for the 1934-35 season were 38,027 acres and 402 irrigators, the increase being due chiefly to the inclusion of the Omakau scheme, which is now nearing completion. Excluding this scheme, in which water is purchased as it is required and in which no irrigation agreements are in operation, an area of 38,847 acres was irrigated, as against an area of 44,158 acres which should have been irrigated. The difference was the area to which water was refused on account of the non-payment of the water rates. The total irrigable area now commanded on all schemes is 60,000 acres. Generally speaking, the season was a successful one, and was notably free from destructive thunderstorms. The spring and summer were more than usually dry, but stream-flows were well maintained and no shortage of supplies occurred on any schemes. The comparative absence of dry, hot winds during the summer tended to offset the low rainfall. The completed schemes now in operation are shown in the following table, which also indicates the areas actually irrigated, the area that should have been irrigated if the settlers had paid their arrears of rates, and the number of irrigators in each scheme : —

The Omakau scheme was in its first year of operation, and th, - % now commanded is 13,400 acres. The financial results of the year's operations are as follow °9.891 ; workingexpenses, £14,666 ; gross profit on working, £8,225. As far as possible water rates were collected in advanc "ears with their payments. Since 31st March, the amount collected under review, £17,023.

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I Scheme Area actually Area that could Number of irrigated. be irrigated. irrigators. Acres. Acres. Arrow River .. .. 1,761 2,864 39 Ardgour .. .. 1,342 1,364 13 Bengerburn . . .. 114 144 13 Earnscleugh .. .. 1,865 2,058 47 Galloway .. .. 2,591 2,618 22 Hawkdun .. .. 7,473 8,736 59 Idaburn . . . . .. 565 565 8 Ida Valley .. .. 10,689 11,474 55 Last Chance .. .. 1,848 2,118 32 Manuherikia .. .. 4,781 5,622 72 Tarras .. .. .. 2,574 2,725 19 Teviot River .. .. 3,244 3,870 47 38,847 .. 426 Omakau .. .. .. 5,000 .. 33 Totals .. .. 43,847 44,158 459