D.—l

For the current year appropriations are proposed as follows : — £ Nelson end .... .... .... .... 5,000 Reefton end .... .... .... .... 10,000 Otira-Bealev ... .... .... ... 70,000 Bealey-Cass .... .... .... .... 50,000 Westport-Inangahua. The formation-work, principally rock-cutting, which was in progress under contracts at the commencement of the year, has continued steadily and is still in hand. In all, eighteen contracts have been let, practically to small parties who carry out the work themselves. Six contracts have been satisfactorily completed, most of the others are making good progress, while one which was abandoned has been relet to a fresh party. The work in hand will carry the line to a point ten miles from Westport, and bushfelling and clearing is in progress over a further length of two miles. Beyond this point it is not proposed to undertake construction-work for the present. During last financial year the expenditure on this line amounted to £18,711, and to meet liabilities during the current year a vote of £20,000 is proposed. Greymouth - Point Elizabeth. The extension of this railway to serve the new State coal-mine has been completed, and the line, which has a third rail in the centre on .the incline from Dunollie to the new terminus, is now in operation. The country being very steep and rough, there has been much trouble from slips, but protective works have been put in where necessary, and the extension is now ready to hand over to the Railway Department for regular traffic. The expenditure during last financial year on this line was £9,980, and for the current year a vote of £20,000 is asked for. Cm,vkrden -Waiau. An extension of the existing railway from Culverden to the south bank of the Waiau River opposite the township of the same name was authorized last session. The line will be fourteen miles long, inexpensive to construct, will traverse a closely settled area,, and serve a large productive district beyond, the output of which has hitherto been restricted on account of its distance from the railway. A vote of £5,000 for making a commencement with this extension is provided on the current year's estimates. Waimate Branch Extension. There was no expenditure out of last year's vote of £5,000 for the extension of the railway from Waihao Downs to Waihaorunga, as it was not found practicable during the year to detach a suitable engineer to carry out the necessary survey of the route. The vote of £5,000 is, however, repeated on the current year's estimates. Otago Central. Recent examination by engineers of the route between Clyde and Cromwell proves that, provided the rate of speed is restricted, a line of the standard gauge with sharper curves, occasional slightly increased grades, and generally lighter formation can be taken for most of the way alongside the present road and constructed at far less cost than the original estimates indicated. Such a line would admirably serve the purposes of the settlers in the Upper Ciutha Valley and enable large quantities of grain of the highest quality, and also fat stock and fruit, to be conveyed to the coast. At present this is impossible, as it costs Is. per bushel to cart grain from Hawea to Clyde, and fat lambs would become stores by the time they reached the present terminus. A vote of £7,000 is included in the estimates to permit of construction-work being commenced as soon as the necessary re-survey is completed.

VIII