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substantially reduced the continuance of the present policy is certain to be followed by serious results, particularly if the seasons are adverse. The average cost of maintenance per mile per annum since 1924 on the primary and secondary highways and on the whole highway system is shown in the following table : —

Construction. The expenditure on construction for the year 1931-32 dropped by 46 per cent, as compared with the expenditure for the previous year, consequently the results of the Board's operations have been less noteworthy than usual. The town of Ohura was connected up with the rest of the North Island by an all-weather road for the first time in its history. A number of sealing contracts were in hand at the beginning of the financial year, and most of these have been carried to completion. It is desirable to mention that it has been the aim of the Main Highways Board to carry out as much of its work by the contract system as possible, and that as a result of this consistent policy over a period of eight years a corps of efficient modern road-contracting organizations has become established. These organizations have invested a considerable amount of money in up-to-date plant, and have trained a large body of men as experts in paving-work. As a result, the roading authorities of the country have greatly benefited in reduced prices for work when let by public tender, and in much-improved workmanship. It is to be deplored that the drastic curtailment in the Board's operations has already resulted in the partial breaking-up of these efficient organizations, and there is every reason to believe that in a short time they will completely disappear. Bridge-construction has also suffered drastic curtailment. Last year the total length of bridges erected was 11,175 lineal feet, while during the year under review only 4,062 lineal feet of bridging was completed. As a result of the last eight years' experience, and also as a result of the information gathered by detailed inspections of over three thousand bridges of the highways, it is considered that the necessary bridge replacements over the next ten years will have to be at the rate of 9,000 lineal feet per annum. This means that the replacements during the past year were 5,000 lineal feet behind requirements. During 1932-33 it is probable that the replacements will be 6,000 ft., or 7,000 ft. behind requirements, so that by the 31st March, 1933, the necessary reconstruction programme will be behind, as already mentioned, by about £250,000. Review of Past Operations. The Main Highways Board has now been operating for a period of approximately eight years. A tabulation indicating the extent of the achievements in the way of construction on the highway system is therefore presented : —

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Year. Primary Highways, Secondary Highways. Complete System. £ £ £ 1924-25 .. .. .. 51-7 .. 51-7 1925-26 .. .. .. 73-2 .. 73-2 1926-27 .. .. .. 111-9 .. Ill'9 1927-28 .. .. .. 119-9 .. 119-9 1928-29 .. .. .. 125-2 55-5 100-1 1929-30 .. .. .. 151-2 88-5 128-6 1930-31 .. .. .. 121-4 71-0 103-1 1931-32 .. .. .. 115-6 55-3 92-5 1932-33 (estimated) .. .. 92-0 50-0 75-0

Formation Gravelling Tar and Bituminous PortlandYear. and and Bituminous , p aca , am uminous cement Totals. Bridges. Widening. Metalling. Sealing. Concrete - Concrete. Miles. Miles. Miles. Miles. Miles. Miles. Miles. Ft. 1924-25 .. 19 63 6 6 .. .. 94 2,434 1925-26 ... 45 88 16 45 4 6 204 5,168 1926-27 .. 174 151 35 38 12 16 426 6,408 1927-28 .. 173 133 83 34 .. 6 429 7,760 1928-29 .. 224 185 122 51 14 11 607 9,482 1929-30 .. 173 179 133 39 31 12 567 7,547 1930-31 .. 130 128 95 41 14 9 417 11,175 1931-32 .. 139 69 129 32 9 3 382 4,062 Totals .. 1,077 996 619 ' 286 84 63 3,126 54,036