D.—l.

However, with this preliminary work completed, progress has been rapid At the Paeroa end, except for a few short lengths, formation has been complete, on the first 8 miles, including all culvert work, but not the major bridges. At the Pokeno end construction is in hand over a total length of 10 miles. The major portion of the work is being done by machinery and to date about 350,000 cubic yards of material have been shifted. East Coast Main Trunk Railway: Extension to Opotiki.—lt had been intended to commence construction on the extension of this railway from Taneatua to Opotiki during the year, but plant and material from other railways were not available, and construction was postponed. Survey work has been carried on with a small party, and it is intended that construction should commence this year. Owing to the lack of sufficient plant and service material construction operations will only be on a small scale for some time, but the work will be expedited as construction plant from completed railways becomes available. Gisborne-N apier Railway.—Considerable time was lost and heavy additional expenditure incurred on this railway owing to the disastrous floods of February and May last year. Many months were occupied on clearing up slips, restoring service roads, and generally repairing the damage done by the floods. The section between Napier and Putorino suffered greater damage than most of the rest of the line, and this portion was restored by the Railways Department, assisted, where possible, by my Department. It was reopened for goods traffic in November last year. The section from Putorino to Raupunga was completed and handed over to the Railways Department for operation. At the end of June last the section from Putorino was completed and ready for operation. On Ist July, in the presence of a large attendance of people from all over the district, I officially handed over to the Honourable the Minister of Railways the Napier-Wairoa Railway and the extension to Waikokopu, thus giving the people of Wairoa and district transport facilities for which they have long waited. A rail-car service has been inaugurated by the Railways Department, and this speedy and comfortable method of travel has been well patronized since its inception. On the Grisborne-Waikokopu Section of the railway considerable time was occupied in clearing up flood damage, but since this was done good progress has been maintained. Earthwork is practically completed throughout the length, but owing to the broken nature of the country it is anticipated that a considerable amount of slip clearing will be necessary during the next year or two. Good progress has been made with tunnelling operations. The Waikoura Tunnel, 70 chains long, has been completed, the Coast Tunnel has been enlarged and concreted at each end, and in the largest tunnel, the Waiau-Tikiwhata, about 35 chains have been completed at each end, leaving a mile still to do. It is anticipated that this tunnel will be completed at the end of next year. Of the smaller tunnels, four have been completed, and the rest are well underway and will be completed in plenty of time to fit in with the rest of the construction programme. In spite of the lack of sufficient skilled men, bridge-construction has proceeded according to schedule, and unless there is delay in connection with the supply of steel-plate-girder spans and reinforcing-steel all the bridges will be completed in time to allow platelaying to proceed in accordance with the programme laid down. Twelve bridges have now been completed, seven are in an advanced stage of construction, and arrangements for the construction of the remainder are well in hand. In addition, three highway bridges and one overbridge, made necessary by the relocation of the main highway in the vicinity of the railway, have been constructed. Work has commenced on some of the station yards, and Muriwai Station has been almost completed. Fencing operations have been continued during the year, and the many and varied operations made necessary by the construction of a railway have proceeded satisfactorily.

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