8.—6.

revenue; £444,377 was the net expenditure last year. The main highways expenditure is estimated to reach approximately £3,050,000 for the current year, inclusive of certain permanent charges for interest and subsidies. The major portion of this sum will be found from the petrol-tax, tire-tax, and other taxation revenue earmarked for the purpose. Drainage of swamp and other lands, irrigation works, flood prevention and protection, and reclamation of land from the sea in suitable localities, are the principal types of activity under this heading, whereon the net capital expenditure last year was £136,245, and for which the current year's allocation is £320,000, augmented by a substantial provision from the Consolidated Fund for such works as are not considered justifiable projects for the expenditure of loanmoney only. The extension of irrigation works in Canterbury is being pursued steadily, and care is being taken to ensure that the revenue from this work for the benefit of private lands will repay the interest and other annual costs. The supply of electricity by the State is one of the most important of public services, and it is pleasing to state that a strong financial position is being attained, a net profit for last year of approximately £122,000 over the whole of the Government's undertaking's having been gained. This profit automatically goes in reduction of past losses, which have now been reduced to £224,000. Last year's revenue at £1,041,000 passed the million mark for the first time. It is considered that the substantial reductions in the price of electricity to the consumer which have taken place during recent years as - a result of the bulk supply of power by the Government warrant the extension of Government operations in this sphere. Substantial provision will also be made for general land-development and for the settlement of unemployed workers on the land, and also for continuance of the policy of establishing Natives on suitable land. Greater activity in afforestation will be met from an increased vote for the State Forests Account. Sundry other works include the extension of telegraph and telephone systems, for which £360,000 will be allocated in the capital expenditure programme, and also lighthouses, harbour works in more remote localities, and additions to tourist resorts. The Government has decided to install radio beacons at suitable lighthouses on the New Zealand coast for the use of ships fitted with wireless direction-finding apparatus. Two equipments will be ordered immediately for erection at Baring Head and Cape Campbell on the eastern end of Cook Strait, to be followed by a third for the western end of the Strait, and two more for outlying islands marking the approach to Auckland. The programme will go on continuously until all stations where radio beacons are necessary are equipped. An arrangement has been concluded with the British Admiralty whereby a fully-equipped survey ship—H.M.S. " Endeavour " —will arrive in New Zealand next April to commence a re-survey of the New Zealand coast-line. The existing charts contain many inaccuracies, and the information as to soundings at sea is quite inadequate for the present-day methods of navigation. All the New Zealand Government is asked to find towards the cost of this work is the provision of coal and the cost of the ship's annual survey and refit. The works and development programme dealt with above, including maintenance of highways, amounts in the aggregate to approximately £10,450,000, made up as follows: — £ Railway construction and improvement . . . . 2,350,000 Buildings . . . . . . . . . . 1,300,000 Roads and highways . . . . . . . . 3,760,000 Land development and improvements . . . . 1,550,000 Hydro-electric supply . . . . . . . . 510,000 Other works . . . . . . . . .. 980,000 £10,450,000 Of this total, £5,940,000 will be provided out of borrowed moneys and the balance of £4,510,000 from revenue, the Consolidated Fund, the Highways Acdount, and the Employment Promotion Fund being drawn upon for the purpose.

Lands improvement.

Hydro-electric development.

Miscellaneous works.

Radio beacons.

Coastal survey.

Aggregate programme.

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