Industries.

Gold-mining has been carried on for some years, principally at Mahakipawa, Waknmarina, and Wairau Valley. At present not much gold is being obtained, although there are now strong indications of a great improvement in the gold-mining industry.

There is one dredge at work in the Wakamarina River, giving fair results for the outlay.

There are at present four sawmills at work within the district: one at Kaikoura, and the others in the Pelorus, Kaituna, and Onamalutu Valleys. The principal one is Messrs. Brownlee and Co.'s, in the Pelorus Valley, the annual output being about 3,000 000 superficial feet. The value of the sawn timber shipped in 1896 from the company's wharf was £8,904, and they have recently imported new machinery, which will, when erected, increase the annual output by more than another million feet. The mill at Kaikoura turned out 120,000 ft.

Owing to the low price of dressed flax several of the mills have recently been closed, there being only four or five now at work. The quantity of hemp shipped during the year was 3,000 bales.

In connection with one of the mills, a rope-factory has been established, in which binder-twine made of short, flax or tow is the main product.

There are two flour-mills at work—one at Spring Creek, near Blenheim, owned by Messrs. Redwood Bros. This is a complete roller-mill, driven by water-power, page 50 and can turn out about 14 tons of flour in twenty-four hours. It is electric-lighted, and the sack-working machinery is driven by electric motor. The mill is not worked full time, but during the year the output was 758 tons of flour and 333 tons of bras and sharps. The other mill, which is also worked by water-power, is Messrs W.B. Parker and Co.'s, at Blenheim.

There is a dairy factory at Spring Creek which contains all the latest improvements in machinery; 22 tons of butter was produced in 1895.

There is a first-class cheese-factory at Tua Marina. The output last season was 50 tons, but the factory is capable of turning out 80 tons. There is also a good cheese-factory at Kaikoura, the output of which last season was 60 tons.

A rabbit-preserving factory has lately been reopened at Blenheim.