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NELSON. The department has only had the direct control of the expenditure of three road votes; the remainder were intrusted to the various local bodies to spend. Of the three, two were small sums for the Matai and Aniseed Valley Eoads, in the vicinity of Nelson; the other, a Mines vote, for the Wangapeka-Wanganui Eoad. On the work near Nelson the men have averaged 6s. 6fd. and 6s. 3£d. a day of eight hours. The weather was very good, and comparatively little time was lost on that account. No overseer or timekeeper was required, as the sums for expenditure were so small, though the works were occasionally visited by an Inspector; consequently the rate of wages had to be calculated on the time that had elapsed between the beginning and end of each contract; so it is more than likely that an average of 7s. a day was made by the men. The co-operative works at Wangapeka have only lately been started, and though only seven contracts are returned, several others are just completed but have not yet been paid for, so they are not included in the table. An average wage of 9s. 3fd. per day of eight hours has been earned. It should, however, be explained that the men are not of the mixed class of town unemployed, many of whom are artisans and others unaccustomed to the class of work required in road-making, but bushmen and miners residing in the vicinity—the best of workmen. Besides, owing to its being an out-of-the-way place and all stores having to be packed many miles, the contracts were priced at a higher rate than usual. Thos. Humpheies, Chief Surveyor.

WESTLAND. During the year seven co-operative contracts have been completed. One is for the construction of a road-bridge, 51 ft. long, with approaches and wing-walls to protect the approaches. Three are for bushfelling and forming a dray-road with the necessary culverts and ditching, and the other three are for bushfelling, forming, and metalling a horse-track. The work has been satisfactorily performed. The average daily wage earned per man is 10s. 2fd., which includes that of bridge-builders. Feedeeick Witheb, Eoad Surveyor.

OTAGO. Under this system 140 contracts, all in the Tautuku district, were completed during the year, and the average daily wages earned per man was 6s. sfd. per day of eight hours. A considerable amount of work has to be done by day-labour in this district, such as repairing, reforming, metalling, he, which could not very well be effected under co-operation. The works have been well done under the immediate supervision of Mr. Sutton, who has not had any disputes or misunderstandings with the workmen worthy of mention during the whole year, thus putting in evidence the careful scheduling of rates for the works done under his supervision. One great drawback to all road operations in this locality is the very wet climate obtaining throughout the greater period of the year. John Hay, Chief Surveyor.

SOUTHLAND. During the year sixty-three co-operative contracts have been let, giving employment to 270 men. The average wage earned was 6s. lOd. per day of eight hours for road contracts, and ss. 9f d. for the improved-farm settlements. The work on the whole has been satisfactorily carried out. The question of keeping the actual working-hours when the Inspector is not along with the party has become a somewhat difficult problem, the tendency being to keep the time-sheet practically a full one, so as to make the earnings and prices appear low. Taking the system as a whole, apart from the above exceptions, it has worked fairly well. In some districts there has, however, been a tendency to prefer open contracts, the settlers in Longwood district requesting that this might be done. This was, however, to a certain extent the outcome of some co-operative disagreement. This is also partly the cause of a greater number of works being carried out under open contract during the past year than formerly. I might add that, with the exception of one corner of the district, there have been few demands for work except from settlers. D. Baeeon, Chief Surveyor.