D.—l.

accounts of £9,799,000, a sum of £3,884,500 will therefore be provided from revenue, representing approximately 40 per cent. The diagram below gives the annual public-works expenditure from loan-money since 1872. It is interesting to note that for last year expenditure from this source does not reach the peak year of 1931, though the total expenditure from loan-money is returning to a normal and reasonable figure.

The proposed expenditure from loan-moneys on public works for 1937-38, as indicated in the Public Works estimates, is as 'follows : —- (1) Construction and improvement of lines of communication — Railways — £ £ Construction of new lines . . 1,108,000 Improvements and additions to opened lines . . 2,203,457 — 3,311,457 Highways and settlement roads — Construction and improvement of highways . . 1,906,000 Construction and improvement of roads .. 966,000 —— 2,872,000 Harbour-works and lighthouses . . 35,000 Telegraphs and telephones .. .. 750,000 6,968,457 (2) Land-development— Land-improvement . . . . 156,500 Irrigation .. .. .. 105,000 Swamp-land drainage . . .. 23,000 Settlement of unemployed workers 300,000 Native land settlement .. 250,000 Dairy industry loans . . . . 30,000 - 864,500

Annual Public Works Expenditure (loan Money)

IV