the annual reports. In 1903-4 this appears: - "To speak of irrigation as understood in the East is, of course, quite out of the question with artificially stored water pumped long distances." In the report of 1906 this occurs: - "The department is unfairly subjected to criticism by settlers who do not realize that we are commissioned by the Government to conduct our operations as a business and are consequently not at liberty to spend large sums of money on non-productive extensions in order to develop the country. A length of 12 miles was laid purely for agricultural purposes." In 1907-8 I wrote: - "This department does not hold a commission to assist the development of agriculture by laying down mains. Nine extensions were carried out in that year equalling 92 miles. A minimum revenue of 10 per cent was then required to be guaranteed." In 1908-9 this appears: - "It is recognised that the provision of water supply is often of as much importance to settlers as the land itself, but it is necessary to bear in mind that the economic possibilities of supplying Mundaring water to farmers are strictly limited. The consumption of water in relation to length of main is low and the cost of delivering water beyond a distance of 10 miles or so from the main conduit is so great as to call for careful calculation as to whether dam or well supplies would not be cheaper."

8575. By the CHAIRMAN: How do you get your maintenance funds?—They are voted by Parliament every year out of Consolidated Revenue Fund.

8576. Do you get a drawback on the actual maintenance charges?—Yes. Prior to the commencement of the present Water Supply Department in 1912 the Goldfields Water Supply had its own account at the Treasury. It paid its revenue into that account and its expenses out of its own revenue. When the new department was established in 1912 it was arranged that all the gross receipts should go into the Treasury as Consolidated Revenue and that all payments that came out of the Treasury should be by way of Parliamentary appropriation. This has made no difference in the preparation of annual accounts or annual reports. We take all credits into account when preparing our annual account.

8577. Do your two per cent operating charges cover your expenses?—This amounts to nearly three per cent.

8578. What are the maintenance charges?—With regard to agricultural extension, this is part of the general working of the department. One district engineer is given from Mundaring to Cunderdin, and he works the agricultural extensions in connection with the maintenance of the 30in mains from the reservoir. Before we fixed two per cent inquiries where made and worked out exactly what the cost was. We apportioned the time of the men employed on the works. We found the cost amounted to, roughly, three per cent. When the comprehensive scheme was introduced it was calculated at 11 per cent, which was in favour of the farmers. It was actually about 12 per cent.

8579. Originally you charged 8s. a thousand on extensions for a time?—We did not actually charge that, but it was the price. The rating system came into force on the 1st January, 1912. The price then was 8s. A conference was held at Tammin in April of that year, and as a result it was decided to reduce the price to 6s., which was made retrospective to the 1st January.

8580. It did not cut much ice because the great bulk of settlers were not taking the quantity of water to which they were entitled and it did not make much difference to them?— Very little. There is £500 excess for last year from the agricultural extensions. We get excess much sooner with the 8s. price for rebate than we do with a 6s. price. The allowance is 54,000 gallons at 8s. and 72,000 gallons for the 6s., and the farmer does not pay excess till he has used that 72,000. He is given 18,000 gallons more for the same payment, that is on the basis of 1,000 acres.

8581. If the excess water were given at a reduced rate you could never guarantee a supply at the off season which is the time when it would be most required by the farmer?-- Unless the Government decided to take the risk of supplying water from some of the unused reserve. We are going into the matter now. I am putting up a proposal to the Minister when I have considered it in all its bearings. He has already asked a question as to whether we cannot get a cheaper price for excess water.

(The weather retired.) _________________

GEORGE FOSTER HICKSON, Assistant Engineer, Agricultural Water Supply, sworn and examined:

8582. By the CHAIRMAN: How long have you been connected with water supply in this State?—Twenty-one years.

8583. Have you a fairly comprehensive knowledge of the agricultural conditions in this State?— I know the general requirements from the water supply point of view.

8584. Have you been connected with the agricultural water supply areas?— For the last three years they have been directly under my control.

8585. Mr. Castella said that in 1911 Mr. Mitchell, after consultation, devised a scheme under which a supply, either by well or by tank, was to be established throughout the agricultural districts at distances of eight miles?—Approximately.

8586. How far has that scheme been carried out?-- It is still going on. The eight mile centres were only a guide, and in some places where there was no settlement these instructions were not carried out.

8587. Is the work being pushed on?—It has been going along normally for the last three years. Last year we put in 17 tanks and a few wells.

8588. By Mr. VENN: In what districts are you extending now?—The work is scattered all over the country. Furthest north we have reached is on the Mullewa-Geraldton line. We are now putting a tank in at Indarra. We are also putting them at Gootha and on the Mullewa-Wongan line, and right down to the other side of Wickepin. I have a proposal for three or four tanks at Waddering. I have here plans showing the extent of the work done throughout the agricultural areas. (Plans put in.)

8589. By the CHAIRMAN: Do you control the cleared roads?— No. When the work was done by the Public Works Department we did all the prospecting over these areas, but when we became the Water Supply Department the Public Works branch took over the work.