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propose to ask for sufficient authority to enable the necessary surveys to be made during this year. Hokitika-Geeymouth Eailway. A short length of this line was completed at the Hokitika end some months since, but has not yet been used for traffic. Some delay took place in calling for tenders for the Arahura Bridge, owing to the necessity of preparing new designs, and as soon as the appropriations are passed this contract will be put in hand. The continuation of this line has been also put in hand by employing a large number of men who were out of work in Christchurch. It was considered better to put them on this directly-serviceable work than to find non-remunera-tive work near Christchurch. The question of route of this railway between the Arahura and Teremakau has been again raised, and it has been suggested that the line should go through Kumara instead of along the beach. The question is one upon which the Government has not sufficient information to deal with it at once, so it has been decided that a survey should be made of the proposed deviation before proceeding with the works along the portion of direct route which would be affected. The works at the Hokitika and Greymouth ends of the line will, however, in the meantime be proceeded with. Otago Centeal Eailway. During the year two contracts have been finished, making the line complete up to the Wingatui Viaduct, about seven miles and. three quarters from the junction with the main line. There has been a short delay with the construction of the masonry piers and abutments of the viaduct, owing to the necessity which has been proved to exist to go very much deeper with the foundations for two of the piers. This delay, however, will not retard the completion of the superstructure. The whole of the materials for this work are now in the colony, and will soon be ready to be taken to the site, when the process of erection will be rapidly pushed on. The " Mullocky " formation contract was completed on the 3rd February, 1886, but the contractors for the other four sections are all considerably behind time, and are being urged to make better progress. Contracts are now being let in short lengths to complete that portion of this line known as the Hindon section, which was commenced several years since, and on which much money was spent in relief works. It is hoped that these works will very sensibly relieve the pressure on the Government for employment in and around the City of Dunedin. Contracts are also being prepared for the erection of the several bridges which are required between Wingatui and the end of the Nenthorn section, all of which it is proposed to put in hand during the year; and the Engineer-in-Chief has instructions to push forward all these works as rapidly as is consistent with economy. But, as I have before pointed out, the non-completion of the Wingatui Viaduct retards all the other works beyond it. The expenditure on this line up to the 31st March, 1886, was .£267,218, and there were liabilities then existing of ,£51,200. It is estimated that to complete this railway to Sutton, a distance of thirty-three miles, will require a further sum of £128,350, and that to take the line on to the Taieri Lake, thirty-four miles further, will cost ,£180,000; or a total cost for the sixty-seven miles of ,£626,768. After reaching the Sutton the country becomes comparatively easy, so that the average cost per mile beyond that point may be expected to be very much less than it has been throughout the portion hitherto undertaken. The authority which I now propose to ask for on account of this railway will provide for the completion of the formation and bridges up to the Sutton, including platelaying for a further length of 5 miles, beyond the end of the 8 miles already laid, and also for a new formation contract between the Sutton and Middlemarsh, length 7 miles.