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the work from available funds, or, on account of existing heavy rating, cannot avail itself of the empowering provisions of section 7 of the Local Bodies' Finance Act, 1921-22, whereby with the prior consent of the Hon. Minister of Internal Affairs and without approaching the ratepayers it may proceed to raise a loan covering the cost of the necessary repairs. On the 24th March last year the regulations for the classification of roads for the use of motor-lorries, under the provisions of the Public Works Amendment Act, 1924, and the Motor-vehicles Act, 1924, became effective. To the end of March, 1926, fifty-eight local bodies had submitted their classifications, and since then five additional classifications have been received. Of these, forty-eight classifications have so far been approved or amended and gazetted. In certain districts, however, advantage has not been taken of the power given by these regulations, and it would seem desirable both in the interests of local bodies themselves and motor-truck owners that classifications should be made, otherwise there may be a danger of isolated classifications becoming effective which may constitute a barrier to the uniform use of roads by motor-lorries in a given district. Main Highways. The amending legislation of last year permitted the Main Highways Board to subsidize maintenance of main highways to the extent of half the cost of the local authorities. Under the original Act the contribution of the Board was one-third of the cost, and the effect of the improved rate of contribution by the Main Highways Board was to induce local authorities to provide larger sums as their quota towards the maintenance of main highways, and thereby ensure a better surface on the highways for the use of the travelling public. A pleasing feature in the actual maintenance operations of main highways is the introduction by local bodies of modern roadmaking-plant methods which are strongly advocated by the Board itself. It is only by the employment of up-to-date methods that the needs of modern road transport can be economically satisfied, and the adoption of such methods by all local bodies is strongly advocated. Enhanced contributions by the Board for major deviations of main highways, construction of bridges, and repair of extraordinary damage brought about by floods or other causes was also provided for, and the benefit to local authorities has been substantial in a number of cases where, owing to great damage by floods, the resources of local authorities were seriously affected. A number of roads have been added to the main highways during the year, with a corresponding advantage to the local authorities. The Board's relations with the local bodies continue to be of a very satisfactory nature. It has been successful in obtaining more substantial contributions from, some local authorities towards the maintenance of Government roads, being portions of main highways, than was formerly the case, and local bodies are showing that they are earnestly striving to meet the requirements of the Board relative not only to ordinary maintenance of main highways, but construction and reconstruction on an improved scale to that formerly obtaining. It is here remarked that all reconstruction schemes are thoroughly investigated bv the Highways Board, and the necessity for local bodies to prove the economic soundness of their schemes tends to regulate local-government borrowing. HYDRO-ELECTRIC DEVELOPMENTS. The year just completed represents the fifteenth year since construction work on the Department's first hydro-electric development was commenced, and, as I am now taking over this work from the Right Hon. Mr. Coates, it would appear opportune to briefly review the progress to date. The Aid to Water-power Works Act was passed in 1910, authorizing the Government to borrow £500,000 for hydroelectric development, and construction work was started on the first scheme at Lake Coleridge in the following year. Further authorizations were made by the Electric-power Works Loan Act, 1919 (£6,830,000), and the Finance Act, 1920 £3,500,000).

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