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platelaying, ballasting, supplying of sleepers, and the erection of station and other buildings, and works of other kinds, including repairs to public buildings, have also been carried out under the system. It is very desirable that the co-operative system should be adopted by local authorities , and more especially is this the case where grants-in-aid towards the construction of roads and public works are given by the colony. The adoption of this system would insure a living-wage being earned by the men employed , and it would also have the effect of more evenly regulating the labour market. Thus, when there was a dearth of private employment, the number of men engaged by the Government and the local authorities could be increased, and when private employment was plentiful, correspondingly, the number of men employed by the Government and the local authorities could be decreased, thus equalising the the work and insuring a fair return during the whole of the year At the present time, during some months of the year, skilled workmen and labourers are fully engaged, whilst, again, for some months, a very large percentage are unemployed. What has been earned during the busy season is eaten up during the period of idleness, and thus the men at the end of the year find themselves no better off. The success which has attended the co-operative system in New Zealand has led to its application m the construction of works m the neighbouring colonies. EE-AEEANGEMENT OE DEPAETMENTS. I take this opportunity of intimating that, during the recess, it is the intention of the Government to take into consideration how, m the interest of a more perfect system of public-works administration, the several departments now controlling public-works expenditure can be amalgamated. There is a good deal to be said in favour of the Eailway Department having the construction of railways placed under its charge, and the engineers and officers of this department arc-in every way fitted to perform the duties connected therewith. The Lands Department, under the head of Eoads and Lands Improvement Accounts, have practically the control of one-half of the moneys appropriated under the Public Works Estimates. There is also the construction and maintenance of buildings, lighthouses, harbour works, &c, for which we are asking for appropriations this year of over £150,000, and with increased settlement it is very difficult to see how it is possible for this rate of expenditure to be reduced. These branches, outside working railways and railway construction, are of sufficient importance to be placed, under the immediate charge of the Public Works Department, and it would be better, I think, if one department controlled the whole of this expenditure. The Minister of Lands at the present time, m addition to the sale and disposal of Crown lands, has also the administration of the Land for Settlements Act, the Native Land Purchase, and the Agricultural and Stock Departments. These m themselves are more than sufficient to engage the whole of his time, without having to undertake the administration of large sums which are to be expended upon roads. Then, as regards the Surveyor-. General, seeing he has also to act on the Board under the Land for Settlements Act, together with the numerous other duties he has to perform, it is impossible for him, as head of the Lands Department, to exercise that supervision necessarily entailed m the expenditure of such a large sum of money on the construction of roads. This in like manner applies to the Under-Secretary for Lands, who has the direct supervision in respect to lands purchase under the Land for Settlements Act and the Native Land Purchase Department. In fact, the work in the Lands Department has assumed enormous proportions, and it is considered it would be an advantage if this department was relieved of the construction, supervision, and maintenance of roads. There is also a large expenditure upon the construction and maintenance of roads on gold-fields, which should likewise be placed under the supervision of the Public Works Department Summarised, if the proposed amalgamation is given effect to, the Eailway Department would control the expenditure on working railways and railway construction; the Lands Department would control the administration of the ordinary Crown lands, together with the purchase,..surveying, laying-off, and supervision of lands for settlement, whilst the Public Works Department would