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especially in time of war, to an isolated country. ■ The Government should therefore view this matter from a broad standpoint, and offer bonuses of sufficient magnitude to induce capitalists from abroad to establish works within the Dominion, not only for smelting, but also for the manufacturing of iron and steel of various kinds. To this end and purpose I beg to suggest that the following bonuses be offered : — For the first 30,000 tons pig iron or ingot steel, 15s. per ton = £22,500, For the first 20.000 tons bar, rod, angle, or other manufactured iron <>t gteel, £1 ss. per ton £25,000; for the iirst 10,000 tons sheet or plate iron or steel, £1 ss. per ton £12,500; making a total of £60,000. This would ensure the manufacturing of all kinds of iron and steel within the Dominion, the imports of which for the live years 1906-10 were Pig iron, 51,504 tuns; bar, rod. &C, L 09.532 tons; sheets and plates, -12,074 tons. 1 believe that bonuses such as these would have the desired effect of inducing outside capital to take this important industry up and turn to marketable account the immense quantities of ore now lying dormant, awaiting only capital, enterprise, and experience to develop it into one of the staple industries of the Dominion of a national character, the Government themselves being the largest users of these articles upon which 1 have asked that bonuses should be paid. There were no figures kept by the Department of Labour prior to 1903 of the number of engineering workshops, but in 1903 it gave 151, and in 191 i 328, thus Bhowing an increase of over 112 per cent, in nine years. This increase, however, in the number of workshops as shown by the Labour Department must not be taken literally, because whai is now considered by the Department a workshop is a place where tw more employees arc engaged, and the increase consequently does not necessarily mean a proportionate increase in the aggregate of the number of hands employed; as a matter of fact I find from statistics that there has been no increase in the number of hands employed in the engineering industry during the past five years, as the returns hereunder, for seven years, go to show. These figures speak for themselves, and are not by any means encouraging considering the growth of the country as testified by the increase in population and by "the general exports and imports. Engineers employed—l! Hi.,. 3,632; 1906,3,942; 1907,4,116; 1908,4,206; 1909,4,392; 1910,3,985; 1911,4,105. Judging from these figures, it would appear that the engineering industry is at a complete standstill, with an inclination to go backward rather than forward This must be regretted by the Government and the country alike, for, as a rule, when the iron industry of a country is" busy all else is in a prosperous condition. The iron-manufacturing industry therefore is one which'should be placed in the position of keeping pace with the growth of a young and pro aressive country; but I fear it has been retarded by the enormous imports oi machinery and implements, amounting in eleven years—l9oo-10—to £8,073,621, or equal to £770,329 annually, as shown by the returns herewith attached, each year invariably showing an increase on its predecessor, while the Dominion manufacturers are practically idle. This clearly goes to show that something is wrong and requires immediate remedy, especially when it is considered that most of the imported articles enumerated could be manufactured satisfactorily within the Dominion which, if done, would necessitate the employment of about 20,000 engineers and general metal-workers' hands, instead of 11,540 as at present When wives and families are added to this increased number, surely an extra duty should not be objected to m order to foster such a desirable state of affairs, especially as manufacturers, in many instances have undertaken to guarantee no extra cost to the consumer. To the dairy and agricultural farmer alike such an increase in the population would mean an enormous advantage, as it would establish a cash market at their own doors, instead of having, as at present, to go abroad for it on terms. Imports of General Machinery, and Agricultural Implements and Machinery, for Eleven Tears. 1900 to 1910, inclusive. British. Foreign. £ £ Agricultural machinery 559,108 561,908 Ploughs and harrows Jl,«g 37,083 Dairying machines ... »«.*» 206 ' 7 39 Dredging Shinery - -"M* JJ »«} Electric machinery (10 per cent.) ... ... 1.038,080 295,769 Electric machinery (20 per cent.), (three years only rt ao — 1908-10—no record kept prior)- ... 130,1J4 BZ,UO» Electric machinery (free), (three years only —no record kept prior) ... - JO3 914 33 206 Z Z «9,665 265,762 Gas and oil engines for motors (five years, 1906-10) 20,172 10,100 Boilers for steam-engines »b,iii o,ou^ Flax-milling machinery ... , ' ' *'™* Gas-making machinery and plant ... 230 363 Locomotives 74 67g Mining machinery ... ••■ -70 570 3 917 engines for ... 79,0i9 boilers for ... • •■ ZS.ODZ

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