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pushed on vigorously, and propose asking the authority of the House to expend, or to enter into contracts for, a much larger amount this year, than during last year. The works which were in hand during last year on this railway are as follows: — At the Northern End. —Commencing from Te Awamutu, the Puniu Contract (length about 15 miles), including permanent-way, has been steadily progressing, and is expected to be completed ready for traffic about October next. The Te Kuiti section, length about 11 miles, which was also to include permanent-way, was advertised for tender in August last, but had to be withdrawn in consequence of a reduction made in the Estimates last session. Beyond the end of this section there is the Waiteti section, length about 9 miles, of which working plans are complete and ready for contract. The Puro-o-tarao section, length (including tunnel) about 1J miles, which is distant about 48 miles from Te Awamutu, was let by contract in August last, to be completed in August, 1887. To the southward of the tunnel the working survey is completed for a length of 4£ miles. Contracts have also been let for G6,000 sleepers, and 18,000 more have been taken over from Working Railways Department. In addition to these works a large amount of work has also been done in the shape of approach-roads to get access to the railway; and also a large amount of exploration and preliminary surveys, to get the best line throughout the portions of railway which have not as yet been undertaken. For further details concerning these latter items I would refer honourable members to the report of the Engineer-in-Chief, which will be attached to this Statement. I would also wish to take this opportunity of stating distinctly that, in cases where contracts have been let to Natives, they have done a great deal of work very satisfactorily and at moderate prices; and, whenever they have demanded excessive prices, the contracts have been advertised and let by public tender. At the Southern End of the line the requisite railway-station at Marton Junction has been completed, including such buildings as will be necessary for probable present traffic. The Porewa Contract, length about 12 miles, including platelaying, commencing from Marton Junction, was let in April, 1885, but has had to be taken out of the hands of the original contractor and relet to another contractor. It is now going on satisfactorily, and will probably be completed about November next. The re-letting of the work involved no loss to the colony, except in the matter of delaying completion. Commencing at the end of the Porewa Contract is the Hunterville section, length about 6 miles, which was advertised for tender some time back, but had to be withdrawn on account of the limited funds provided; and beyond the end of this section the working surveys and plans have been completed for a further length of about 5 miles. At this end of the line also a considerable amount of work has been done in the construction of approach-roads and further survey-works, which will be found detailed in report of the Engineer-in-Chief. The work required for improving the navigation of the Wanganui River was commenced in August last, and an available depth of about 2ft. of water has already been obtained as far as Kaiwaka, forty-six miles above Wanganui, and between Kaiwaka and Pipiriki similar work is in progress. At Pipiriki a branch road will leave the river to go into the interior. Both Ends. —The works and surveys at both ends of this railway were much delayed last year in consequence of reductions made in the votes, and, although every effort was made to stop all the works which could be stopped, in sufficient time to keep the expenditure and liabilities within the vote, it was found impossible to altogether attain this in consequence of the difficulty of communication, and there has consequently been an excess of about ,£13,000.