III

D.-l

The amounts required for road-works are in excess of those asked for during the last three years, but this excess is largely due to the purchase of Native lands, and to the amount required for roading the lands purchased. A large amount is also required for farm-settle-ments, and for land-improvements and main-road maintenance. In respect to the latter, as previously stated, the condition of the finances of the local authorities is such that it is impossible for them to bear the expense of these roads. ROAD AND RAILWAY EXPENDITURE. A pleasing feature will be found in the fact that, whilst there has been a large increase in the expenditure on roads—which are a great and absolute necessity, in fact the lifeblood of settlement—there has been a considerable decrease in the expenditure on railways. The appropriations asked for for railways this year also show a decrease on last year's votes, and the decrease would have been still more marked had it not been for the fact that a much larger sum is asked for by the Railway Commissioners for additions to open lines this year than was voted last year. Last year the amount voted was £18,978 ; this year £40,000 is required; and on going carefully into the matter the Government has come to the conclusion that the Commissioners have not been unreasonable in their demands. Notwithstanding the smallness of the expenditure it will be found that the outlay during the last two years has been the most advantageous that has taken place for a considerable period, for the finishing of partly-constructed lines and bringing them to remunerative points was considered to be of the first importance. In another part of the Statement will be found a comparative return showing the appropriations for and expenditure on railways and roads respectively for the years 1890-91,1891-92, 1892—93, and 1893—94, from which it will be seen that there has been a gradual reduction in the expenditure on railways and a largely increased expenditure upon roads. Honourable members will, I feel sure, agree with me that the construction of district roads and the maintenance of main roads in the settled districts is, owing to our defective system of local government, to some extent defendable as a charge upon the Consolidated Fund ; but in regard to railways, which remain for the benefit of posterity, it is a reasonable contention that this class of work should be constructed out of funds which the present generation should not be asked wholly to provide. So long, however, as we have partly-constructed lines, and a judicious expenditure will bring them to a payable point and make the past expenditure remunerative, then a grant from the consolidated revenue for such works is warranted —leaving the further extension and completion of such railways to be dealt with in the future. PUBLIC WORKS FUND.

The state of the Public Works Fund on the 31st March last (including a small asset of £78 due to Part I. under "The Government Loans to Local Bodies Act, 1886") was as follows: —

From the above table it will be seen that the receipts during the year more than met the expenditure, so that the Fund was in a better position, to the extent of .€12,307, on the 31st March last than it was at the commencement of the year. The receipts under Part I. consisted of £250,000 transferred from the Consolidated Fund, £163,713 of released Sinking Funds, £3,757 from the Ellesmere Railway Trust, and £1,883 from miscellaneous sources. The £2,428 shown as a receipt under Part 11. was a transfer from Part I. to cover expenditure on the purchase of Native lands to that amount which had been charged to Part 11. in excess of the allocation authorised. TOTAL WAYS AND MEANS AVAILABLE. The Colonial Treasurer has already mentioned, in the Financial Statement, the proposal to again transfer a sum of £250,000 from the Consolidated Fund for general public-works

Parts of Fund. Unexpended Balances, 31st March, 1893. Receipts during 1893-94. Totals. Expenditure,: Balances Year ended remaining, 31st March, 31st March, 1894. 1894. Liabilities existing, 31st March, 1894. Net Balances available, 31st March, 1894. Part I. Part II. £ 177,685 152,943 £ £ 419,353 597,038 2,428 155,371 421,781 752,409 £ 333,300 76,174 £ 203,738 79,197 £ 214,742 28,866 £ 48,990 50,331 Totals 330,628 409,474 342,935 243,608 99,327