GENERAL ASSEMBLY.

Globe, Volume IV, Issue 354, 31 July 1875, Page 2

GENERAL ASSEMBLY.

* HOUSE OF REPRESENTATIVES. [By Electric Telegraph.] Friday, July 30. Wo are indebted to the courtesy of the Government for the following summaries of the financial statement, and the Abolition of Provinces and Local Government Acts : FINANCIAL STATEMENT. Major Atkinson delivered the financial statement this evening ; he said that he did so under a strong sense of responsibility. There had been so many positive statements and intangible rumours discrediting the financial position of the colony that he desired, at the outset, to give them an official refutation. He thought a plain unvarnished statement of the true condition of our monetary position would be the best possible answer to unscrupulous slanderers, while it would enable honest doubtors to ascertain for themselves the truth or falsehood of what they had read and heard. His subject naturally divided itself into two parts—Loans and Revenue. With regard to the raising of the Four Million Loan, it must be remembered that the immigration and public works scheme, when originally submitted by Sir J. Vogel, was intended to extend over a long period, but it had been impossible to resist the pressure to hurry on the works. In obedience to the desire of the Assembly, immigration and public works were both pushed on vigorously, and as a necessary consequence the loans had to be raised more rapidly than at first proposed. Out of the seven and three-quarter millions authorised between June 1870, and June 1874, it was not generally understood that nearly two millions still remained unraised. This fact had an important bearing on the action lately taken by Bir J. Vogel, in placing the whole four millions o,i the market at one time. The expenditure out of loans during the four years, from 1870 to 1874, was £4,289,877, and it was last year estimated that, during 1874-1875, £3,300,000 would be required. In addition to the above there was at least the expenditure for the current financial year to provide for—say, £2,250,000, Out of this total expenditure of £9,839,877 to be provided for, only £5,795,200 had been raised, and it became necessary therefore to provide the balance of £4,044,677. Government decided to sell the whole four million if possible, and appointed Sir J. Vogel, Sir P, G. Julyan, Dr Featherston, and Mr Sargeaunt for the purpose. A grave difference of opinion arose between Sir J, Vogel and his co-agents. The former wished to sell the whole amount at once through Messrs Rothschilds, while Messrs Julyan, Featherston, and Sergeaunt thought a better price could be obtained if the requirements of the Government permitted the loan being sold by two instalments. They ultimately agreed, however, to adopt Sir J. Vogel’s plan, The loan was to be raised by Messrs Rothschild at 94, and one of which Messrs Rothschild receive a commission of 2 per cent, they taking up the three millions immediately, and the remaining one million within a year. The net price received by the colony is £9O 19s Id. By this arrangement the colony was to obtain the necessary means to carry on public works and immigration. Whether Messrs Rothschild successfully floated the loan or not, this fact is particularly commended for consideration. The report received from Sir J, Vogel and that from the other three agents, although differing materially in opinion on some points, concur in saying that the result was successful. Dr Featherstone and the Crown agents write that “considering its magnitude the terms upon which this transaction has been carried out appear to us exceptionally favorable.” With these facts before them the Government are decidedly of opinion that the course pursued was the right one; that the operation was marvellously good, and that to Sir J. Vogel is due the successful terminal, ion of the negotiation. Messrs Rothschild placed the whole loan ; and £3,167,571 had been paid to thi ""edit of the public account at the date oi ..ae last advice (31st May). On comparing the loans, the average annual rate of interest of the previousloanssince 1870 is£4l9s 6d percent; the last is £5 2s per cent, and the average of the whole £5 0s 7d per cent, which is very satisfactory, when it is remembered that in the original estimate introducing the public works and immigration policy it was calculated that the money might be obtained at 5.] per cent. The balance at the Bank of New Zealand, London, on the 31st of May, had been partly reduced by a repayment to the Bank of England of the £600.000 that had been borrowed on the £BOO,OOO of Imperial guaranteed debentures, to £2,056.716, against which drafts had been discounted by the Bank in the colony up to the 30th of June of £1,050,000. The Bank of New Zealand now pays interest at the rate of £ per cent below the current Bank of England rates, instead of 1 per cent as formerly. The probable average balance for the year is estimated by Sir J. Vogel at £1,500,000, and ho proposes to invest any sum in excess of that amount in Exchequer Bills. The history of the loans raised prior co 1870, and the unproductive nature of at least three millions of the amount, are too well known to require explanation. Only the loans raised under the Acts of 1870, 1873, and 1874 are reviewed. Out of the £790,000 authorised by the Defence Loan, 1870, to be spent within five 5 ears for purely defence pur-, poses, only £681,703 has been spent. There is also a balance out of the £210,000 authorised by same Act for other purposes. Out of the total of one million authorised, there is still an available balance of £125,315, less the expense of raising. The unraised portion of this loan amounts to £179,700, of which £52,700 has been hypothecated to the Bank of New Zealand for a nominal advance of £50,000. Before remarking on the operations exhibiled by the table showing the expenditure on General Purposes Loan, 1873, reference is made to the extraordinary misapprehension which appears to exist even among well-informed people with regard to the extent to which interest is paid out of borrowed money. This misapprehension arises probably from two causes, viz, from payments made in London, apparently taken from loan, and from the item of £390.000, voted under the Loan Act for “ repayment to the Immigration and Public Works Loan for interest and sinking fund paid, or to be paid, therefrom.” As this is a question closely affecting the credit of the colony, an explanation is given showing, as regards the first-mentioned cause, that om of the consolidated revenue raised in th< colony, there are charges payable in London for interest and sinking fund, while, on tin other hand, there are large sums raised b\ loans at the credit of the colony in London, of which a considerable ampunt is required

to be expended in the colony. The practice is to pay in London such portion of the interest and sinking fund chargeable on the revenue as is required to be paid there, and out of the funds raised by loan, and on the receipt of the Crbwn agents’ account in the colony, we charge the interest and sinking fund so paid to the consolidated revenue. The whole transaction is merely a convenient mode of avoiding the payment of exchange and nothing more. With regard to the second case of misapprehension, the total sum ever asked for or granted for this purpose was the £300,000 above mentioned. Of this only £218,500 have been expended; and as no more interest will be paid out of loans, the balance of £81,500 will be otherwise appropriated. But against this payment of interest out of loan there has been contributed to Public Works and Immigration a sum of £179,303 out of stamp duties, and the contribution will be increased by the end of the year to £241,800, so that there will be contributed out of revenue towards loan purposes £23,300 over and above all interest paid out of loan, which contribution will be farther augmented year by year. The absurdity of the assertion that the Government has been paying interest out of loan is shown by the fact of no less a sum than £2,384,942 having been paid from revenue since 1870 for interest on loans. Last year all interest was paid out of revenue, and this year the same course will be followed, notwithstanding provision has to be made for interest upon the additional four millions raised. Out of the General Purposes loan 1873 for £750,000, a sum of £463,000 is yet unraised, but the Bank of New Zealand holds hypothecated debentures to the value of £210,500, against a nominal advance of £200,000. The available balance on this loan, less the charges of raising, is £106,500. In explanation of the hypothecation for the above advance of £200,000, and of the £SOOO under the Defence Loan, it is stated that it was proposed to sell in Sydney £309,000 of General Purposes Loan bonds at par, but only about £50,000 have been sold, and theremaiuder withdrawn. The hypothecated debentures have thus been unredeemed, for although the colony has large funds at its disposal, the wholesome restriction exists which forbids the ways and means provided by Parliament for one service from being applied to another. The liability for interest, however, has been annulled by depositing with the Bank £250,000 of the Immigration and Public Works loan, bearing the same rate of interest as the advances. The three Immigration and Public Works loans of 1870, 1873, and 1874, are for the sake of clearness tabulated together with the following result :—Authorised, £10,000,000 ; expended to 31st June, 1875, £6,674,695. Liabilities, £3,095,995 ; available balance, £429,313. The items of expenditure will be explained in full detail by the various Ministers in the departmental statements shortly to be made. The summary of the loan tables show as follows :—Authorised, £11,750,000 ; expended to 30th June, 1875, £7,739,413 5 liabilities, £2,531,923 ; available balance, £1,478,664 ; balance, yet to be raised £1,954,800. The public debt on 30th June was £17,671,106, less accrued sinking fund £1,074,647. The annual charge for interest is £835,150, and the sinking fund £110,635. Of the debt the colony has a balance in hand of £2,167,896, being cash raised, but not yet expended, although subject of course to outstanding liabilities. Besides this the accumulated sinking fund, £1,074,647, really represents the extinction of so much indebtedness. When the amount still to be raised is obtained the total indebtedness will be £19,380,906, and the total annual charge thereon £1,035,775, but before this prospective debt is reached the whole of the balance now available, plus the proceeus of the portions cf loans to be raised, in all £3,877,696, will have to be expended. Assuming this to be in two years, the accumulated sinking fund will by Drat time have practically reduced the debt to £17,980,906, Some of the loans forming this debt are specially secured s»n the proceeds of land which wi'l accrue at intervals. Turning now to the question of revenue, the estimate formed has been exceeded by £108,402, the revenue received being £1,605,003, or £184,785 in excess of previous year. Under every head there has been an increase over the revenue of the year previously, and only on two items has the estimate fallen short by the small amount of £2141. The total consolidated revenue for the last year, including £96,357 assets yet to be realised and £205,500 surplus from the previous year, amounted to £1,906,860, aud the expenditure to £1,786,414, leaving a surplus of £120,446, Of the £500,000 Treasury Bills outstanding last year, £IOO,OOO has been paid, aud the power to borrow £BO,OOO for advances to provinces has not been used, the advances having been provided out of revenue as well as an advance of £20,000 to the trust fund, against Treasury Bills held by that fund. The total amount of Treasury bills now current is £400,000, which have been renewed during the year at more favorable interest. This amount is less by £310,000 than the amount outstanding in 1872. The total receipts from confiscated lands for the two years ended 30th June last, amounted to £80,826, and the expenditure to £94,779. The tune has arrived when these lands should become subject to the ordinary land laws, and a proposition will be submitted thereon for approval. The ordinary land fund has amounted to £77.3,265, showing a considerable falling off from the previous year, owing probably to the purchases iu 1874 having been in excess of requirements. The Government are anxious that the public estate should be conserved, and iu their opinion it has become the duty of the Legislature to consider carefully the matter, and insist that the public estate shall not be sacrificed or dissipated, or the proceeds misapplied. The savings’ bank returns show for the lirst time a decreased balance, the withdrawals being £40,791 in excess of deposits. This does not arise from a diminution of the saving power of the colony, but to the high rates given by the banks, the principal amount withdrawn being lor large sums. As the banks have now resorted to more moderate rates, the deposits will probably again considerably increase. Thus far the statement has been a narrative of the facts of the financial position to Juno last. The expenditure for the current year involves the great question of Che abolition of the provinces. In obedience to what, the Government conceive to be the h sire of the Legislature aud a large majority of the people of the colony, the Budget has been prepared on the assumption that the. provincial form of Government will be abolished throughout New Zealand during the present session of Parliament. The

proposed expenditure is as follows; —Permanent charges, £950,176; public departments, £74,46'; postal and telegraph, £222,509; law and justice, £65,722; Customs, £51,293; miscellaneous, £43,898; native, £36,191; militia and volunteer, £22,885; public domains and buildings, £23,351; railways open for traffic, £244,318; armed constabulary, £91,000; grants to municipalities and Road Boards, £80,000; provincial services for eight months from Ist November, 1875. to 30th June, 1876, £230,322; total, £2,214,125. To this must be added capitation and special allowances to provinces for four mouths, £92,275 ; advances under Provincial Public Works Advances Act, 1874, £48,500 : moiety of stamp duties to public works account, £62,500 ; local public works in out districts, £60,000 ; total expenditure chargeable on consolidated fund, £2,405,400. The above contains four new items—Railways, and this includes the expenses of railways under Government control for the year, and of those under provincial control for eight mouths. Armed Constabulary— The five years’ appropriation under the Defence Loan Act having expired, the charge is now come on the consolidated revenue. The Native Minister will give particulars upon this subject when the estimates come on for discussion. Grant to Municipalities and Road Boards —Under the provisions of the Abolition of Provinces Bill, there will become payable to Municipalities and Road Boards out of the consol-dated revenue one pound for one collected upon the general rates up to one shilling in the pound. These payments will be in addition to the amount payable to Road Boards from land revenue. For this year the Legislature is only asked to provide eight mouths’ subsidy from first November next. Provincial services for eight months are required in the anticipation that Parliament will decide this session to abolish the provinces, so that provision may be made for carrying on all necessary departments now under the control of the provinces. This could be done in several ways. Government might have submitted a detailed estimate of all the provincial departments. But there are obvious objections to such a course before the provinces are abolished, or Parliament might be asked to permit the present provincial Appropriation Acts to remain in force and give authority to continue the services at the same rates for such period as might elapse between the date of expiry of the several Acts and the 30th June. But looking to all the circumstances of the case, the Government have thought it better to ask for the vote in its present shape.' The expenditure for lands and survey is under the Abolition Bill made a charge upon the land fund, and it is proposed to continue to charge against that fund the departmental services for local public works. The advantages of this mode of procedure are apparent. It brings under the notice and control of parliament the total expenditure required for the services to be taken over, while it ensures the continuance of the several departments until the Government have had opportunity of seeing where and how they may be advantageously consolidated. The Government is anxious to consolidate offices and reduce expenditure, but they will be very careful that no reductions shall be made which will at all impair the efficiency of the public service. The proposed vote for £60,000 for local public works in out districts will enable the intentions of the Provincial Governments to be carried out with regard to many necessary works in districts hitherto receiving scant justice. Ordinarily, these works will be charged on the land fund, but this year, in consideration of the possible inequalities incident to the proposed changes, it is thought fair to charge it on revenue. It will therefore be, in addition to the expenditure, provided out of the laud fund. The Government recognise education to be of vital importance and a colonial concern, ana they therefore desire to feel their way most carefully before moving in it. Education is now being carried on more or less successfully throughout the colony, and the Government do not desire to alter it until they are satisfied they can improve it. For the present year, it is proposed to let education matters remain practically as they are; seeing, however, that proper provision is made where it is now wanting. While education is properly a charge on the consolidated revenue, it is proposed this year to defray this charge, if necessary, out of the land fund, A vote of £50,000 will betaken out of General Purposes Loan for school building, to immediately satisfy the want existing in some parts of the colony. It is proposed to pay the “ capitation and special allowances to provinces” for four months at the same rate as now existing, except in the case of the extraordinary allowances, amounting to £40,000, granted to the provinces of Auckland, Nelson, and Westland. The capitation allowances amount to £92,275 ; and payments under the Public Works Advances Act to £48,500; namelyy Auckland, £16,000; Wellington, £5500; Nelson, £23,000 ; Marlborough, £4OOO. Loan expenditure.—lt is proposed to makethe following appropriations out of Defence and Other Purposes Loan : Defence, £20,000;; outstanding liabilities, New Zealand Settlement Act, £45,000 ; also out of General Purposes Loan—School buildings, £50,000 ; in aid of lighthouses, £30,000 ; also out of Immigration and Public Works Loan, railways £767,400; immigration, £392,348; telegraph extension, £29,700; public buildings, £75,779; lighthouses, £91,700; public works department, £77,134; making the following totals—Out of Defence Loan, £65,000 ; out of General Purposes Loan, £BO,OOO ; out of Immigration and Public Works Loans, £1,434,063. In most of the above cases the amounts are merely re-votes, and will appear in the annual estimates. The ways and means next claim attention. The estimated revenue for the current year is £2,355,747, to which is to be added the surplus from last year of £120,466, total £2,476,193, leaving a surplus over expenditure of £170,793. The total revenue as above this includes £118,370 taker out of the land fund to meet interest and sinking fund on the permanent debts of the provinces, after deducting from debts of Canterbury and Otago £600,000 and £270,000 respectively, as the value of the provincial railways to be taken over by the colony. It also includes £127,520 charged upon the land fund for interest payable by the provinces on the cost of railways completed and to be completed during the year. It includes likewise the provincial revenue, as estimated by the Provincial Treasurer, for eight months, deducting therefiom all the receipts for auctioneers’, publicans’, spirit and trading licenses, &c,, the whole of which will be handed to the municipalities. The laud fund is not, as in other colonies, included ia revenue. This year the amount is estimate^

by the Provincial Government at £702,192, but returns already received show the land revenue is much under-estimated. The gold duty is not to be abolished or reduced, but as the roads and other means of communication on the goldfields are large and imperative, the Government recognise the necessity of meeting these requirements, and propose to apply the whole of the gold revenue to the roads and public works on the goldfields. The future finance, as affecting immigration and public works, has received careful consideration. As it would be unwise to enter the London market with any new loan for some time to come, it is proposed to expend the considerable sum yet available, amounting to about four millions, over a period of two years. This will enable the formation of main trunk lines, immigration, and other important works, such as lighthouses, telegraph, and public buildings to be got on with.

Below is stated the financial effect the proposed changes will have on the municipalities, Road Boards, and other public institutions in the provinces of Auckland and Canterbury. These provinces have been selected, the one as representing those provinces which are practically unable to perform the duties of governing, and the other as being the most favorably affected by the proposed change. It will be admitted on all sides that the present financial position of the province of Auckland is a public scandal, and the continuance of such a state of things as now exists therj ought not to be permitted. The necessity for a remedy is imperative and immediate. It is for the Parliament to determine what that remedy shall be, and how it can best be applied. The people of Auckland require to be placed in a position of financial independence, and the proposals of the Government will satisfy that demand. The province as a whole will be provided with the necessary institutions of an approved character. Its police, gaols, harbors, lunatic asylums, and educational establishments will be provided for out of the revenue of the colony, and its larger public works will also become matters of colonial concern. The cities will receive the revenue arising from auctioneers’, publicans’ and other licenses for trading within its boundaries, together with a contribution equivalent to the rates counted up to one shilling in the pound. The out-diatricts will receive the revenue from publicans’ and trading licenses within their boundaries, the tolls on roads and bridges, and a contribution equivalent to £2 for forevery £1 collected asrates. Under a prudent local management, each of these communities can secure its own independence and it will have an income growing with its growth, and adequate to its own wants. The Thames will no longer be governed by or dependent on the city of Auckland, but will have the administration of its own funds; the out-districts, such as Tauranga, Waikato, and the Bay of Islands, receiving, besides the items of income referred to above, in addition to two pounds for each pound collected by rates, will possess larger and morr certain means of improving their several districts than they have ever enjoyed. The Government have no doubt that the City Council of Auckland, with the aid of the license fees collected in their city, and a contribution equal in amount to their ordinary rate, could govern themselves without the aid of a Superintendent and Provincial Council. They believe that the citizens of the Thames would accept the same obligation on the same terms, and, as an old country settler, I know well what the outlying districts will say to the proposals •which give them the means of real local self-government. The proposal explained above with regard to provincial debts, when applied to Canterbury will place that province in an extraordinarily favorable position. Speaking broadly, most of her public debt will be cancelled, leaving her land fund free for public works within the district, besides having all necessary duties of Government carried on as now. Christchurch will obtain what she has so long contended for, the license fees collected in the city, besides the contribution of £1 for £1 collected by ordinary rates. It may be said the Government have provided too much; it will be said that there is not imoney enough to carry on the provincial districts in so satisfactory a manner as by the Provincial Governments, but this by no means follows, nor if it did, would it be any .ans ver to the proposal of the Government, for in the first place, the proposed method • of local administration being simpler, will be much less costly and much less wasteful. ■ Secondly, the statement of this evening has, ••the Government submit, conclusively proved that the revenues of the colony are amply :sufficient to meet all its liabilities and provide efficient Government; yet the experience ■of the last twenty years has shown that, with vthe present provincial institutions, ithas been practically impossible for the General Assembly to distribute the revenue equitably, so as to meet the requirements of the people. As the capabilities of the colony to bear the burden of its debt is a matter of grave uneasiness to some people, a detailed statement is entered into, showing how the increase from immigration, railway receipts, and other means are calculated to enlarge the revenue, and make it fully sufficient to enable the colony to meet its requirements. The House ■is reminded that a very considerable part of the debt has been incurred for railways which are now a reliable asset, and might be disposed of, if the country were foolish enough to desire, for a very considerable sum, say at least eight millions. It is impossible to deny or ignore the law of vicissitude which seems to govern human affairs, and after the unexampled prosperity of the last five years, we may have from time to time periods of depression. There is no sign of that depression at present, but if it come the facts and figures adduced give abundant ground for confidence in our future. The financial statement concludes as follows ;—“ In making this statement I have kept two main objects in view. First, to give a full and intelligible account of our finance ; secondly, to show the bearing upon our finance of the proposed constitutional changes. lam fully aware tha,t even the financial advantages of abolition and I say nothing of others not less im-portant-arc susceptible of far more complete and convincing treatment than they have received at my hands tonight. Indeed I have assumed that it was my duty rather to indicate than enlarge upon supposed advantages. The figures I have adduced do not need much comment. They show beyond doubt that our financial position is at once sound and exceedingly prosperous ; but whoever reads these figures in the light of a knowledge of our political history, must be well aware that there is in our finance a disturbing

element which one day might—l had almost said which if not soon eliminated inevitably must—load us in financial disaster. The continued existence of the provinces means the continued and constantly increasing pressure upon the Government and upon this House for money in the interest of locality, without any reference to the necessities of the colony as a whole. Ido not for a moment deny the public spirit of the gentlemen administering provincial offices, I only deplore that this public spirit should be circumscribed by the boundaries of the particular province within which they live 1 could easily give instances forcibly illustrating what I have said, and which have occurred within the present month—l might say within the present week —but I am sure they are not needed. It is not necessary that I should prove again what is obvious to every one who will only open his eyes. Last year this House resolved that the time had come when this great danger in our path should be removed. This resolve has been approved by the country, the Government have now given it form, and it remains only for this committee and the Legislature to give it effect.” THE ABOLITION BILL. 1. The short title of this Act shall be The Abolition of Provinces Act, 1875. 2. This Act shall come into operation on the day on which it shall be assented to by the Governor in the name and behalf of Her Majesty and such day is hereafter referred to as the commencement of this Act. INTERPRETATION. 3. The following terms and expressions shall have the meanings hereby respectively attached to them “ Governing body ” means and includes the Council of any city or borough constituted under the Municipal Corporations Act 1867 and the Council Board of Commissioners Board of Wardens Trustees or the persons or body having the control or government of the Local Affairs of any city town or place under any of the Acts or Ordinances specified in the fourth column of the first schedule to The Municipal Corporations Act 1867 and also the Board trustees wardens or the persons or body as the case may be having the control or care of roads or highways in any road district “ road district” means and includes any road districts highway districts or other district howsoever denominated heretofore constituted under any Act of the General Assembly or under any Provincial Enactment in force at the date of the abolition of the province within which the district wascomprised or that may hereafter be instituted under any law for the time being in force providing for the construction control maintenance or repair of highways “ Municipality ” means and includes a city or borough constituted under The Municipal Corporations Act 1867 and any city town or place under the control orgovernment of any Council Board of Commissioners Board of Wardens trustees or other persons or body under any of the Acts or Ordinances specified in fourth column of the first schedule to The Municipal Corporations Act 1867 “ Public works ” mean and include branch railways tramways mainroads public bridges and ferries on main roads docks quays piers wharves and harbor works reclamation of land from the sea protection of land from encroachment or destruction by sea or river public buildings for the use of the General Government or any department thereof and any other work of public utility or convenience connected with the Government of the colony. ABOLITION OF PROVINCES. 4. On such day not later than ninety days after the commencement of this Act as the Governor shall by proclamation published in the New Zealand Gazette appoint the following provinces shall be abolished viz the provinces of Auckland Hawkes Bay Taranaki Wellington Nelson Marlborough Westland Canterbury and Otago In such proclamation a day shall be fixed for the coming into operation thereof and the day so fixed is hereafter referred to as the date of the abolition of the said provinces. 5. The portion of the colony included within any province abolished thereunder shall on and after the date of the abolition thereof be called a provincial district and bear the same name as the abolished province which it comprised. 6. Within the district included within any province abolished hereunder all laws in force therein at the date of the abolition of such province shall except so far as the same are expressly or implicitly altered or repealed by this Act and so far as the same are applied continue in force in such district until altered or repealed by the General Assembly. 7. Immediately from the abolition hereunder of any province and without any proclamation or other act by the Governor or otherwise the person who was then in office as Superintendent of such province shall cease to hold office and the Provincial Council of such [province shall be dissolved and there shall not thereafter be any election of a Superintendent or a member of a Froyincial Council for the district theretofore included within such abolished province and all laws relating to the election of Superintendents of Provinces and membeis of Provincial Councils of provinces and to legislation by Provincial Councils shall immediately upon the abolition hereunder of any province cease to have any operation or effect within and as regards the district theretofore included within such abolished province, 8. All powers duties and functions which immediately before the date of the abolition hereunder of any province were under or by virtue of any law not expressly or impliedly repealed or altered hereby vested in or to be exercised or performed by the Superintendent of such abolished province either alone or with the advice and consent of or on the recommendation of the Executive or Provincial Council of such province or which by virtue of The Public Reserves Act 1854 or any Act amending the same or by virtue of any Waste Lands Act or by regulations made thereunder would but for this Act have been exercised only under an Ordinance of such abolished province shall on the day of the date of the abolition of such province for the purposes of the district included within such abolished province vest in and be exercised and performed by the Governor Such powers duties and functions may be exercised or performed by the Governor as regards the district with respect to which they may be exercised or performed whether the Governor is for the time being within such district or not until the end of the next session of the General Assembly The Governor may from time to time delegate all or any such powers duties and functions to either the person who immediately before the abolition of a pro-

vince hereunder was the Superintendent of such abolished province or to such person or persons as the Governor may think fit and that either without restriction or subject to such restrictions or conditions as the Governor may think fit The Governor may at any time revoke any such delegation so made as aforesaid It is hereby declared that the Governor may notwithstanding that any such delegation is for the time being in force himself exercise or perform any powers duties or functions so delegated and such exercise or performance by the Governor himself shall not operate as a revocation of or affect such delegation. 9, All powers duties and functions which immediately before the date of the abolition hereunder of any province are under or by virtue of any law not expressly or impliedly repealed hereby vested in or to be exercised or performed by the Provincial Treasurer Provincial Secretary or other public officers of such abolished province shall from and after the date of the abolition of such province and for the purpose of the district included within such abolished province vest in and be exercised or performed by any person or persons from time to time appointed for the purpose by the Governor. 10. Alllauds tenementsgoodschattelsmoneys and things in action and all real and personal property whatever and all rights and interests therein which immediately before the date of the abolition hereunder of any province were vested in or belonged to the Superintendent of any province as such Superintendent shall on the date of the abolition thereof vest in her Majesty the Queen all revenues and moneys and all securities for such moneys which on the date of the abolition of any province may be the property of or invested on behalf of such province shall on the date of the abolition thereof vest in her Majesty the Queen provided that if at the date of the abolition of any province any moneys or revenues of such province shall have been specifically set apart and shall be available for the purposes of public works within such province or any district thereof such moneys or revenue shall be applicable to such purposes ingly--11. All contracts existing immediately before the date of the abolition hereunder of any province and all actions suits proceedings and things begun and not completed at the date of the abolition hereunder of any province of by or against the Superintendent of such abolished province as such shall belong and attach to and be enforced by and against her Majesty the Queen. 12. In every Act of the General Assembly except such as relate to the election of Superintendents and Provincial Councils and to Legislation by such Councils and the appointment of Deputy-Superintendents and to audit of provincial accounts and matters of a like kind and in every Act or Ordinance of the Legislature of an abolished province the words terms and expressions following shall with regard to any provincial district include the meanings hereafter attached to them that is to say—(l) The word “ province” shall include “provincial district” and when the name of any abolished province is used or any province is otherwise expressly referred to the enactment shall be deemed to mean and apply to the provincial district of that name (2) The word “ Superintendent” shall with respect to such pro vincial district mean the Governor or any person or persons whom the Governor may from time to time appoint to perform those duties and exercise those powers which might if such duties and powers had to be performed within a province be exercised or performed by Superintendents thereof (S') The expression “ Provincial Gazette ” or “ Provincial Government Gazette" or other similar expressions shall be deemed to mean the New Zealand Gazette or such newspaper as from time to time may be appointed by the Governor for the purpose of inserting therein notifications of any kind relating to the government of the colony or the administration of government within any provincial district. 13. If within one year after the date of the abolition hereunder of any province the services of any officer in the employment of the Government of the colony or of the Provincial Government of the abolished province are dispensed with in consequence of the abolition of such province he shall be paid out of the ordinary revenue of the colony for each year of service one month’s salary according to the rate payable to him at the time of such abolition and also a further sura equal to the said rate if such service be dispensed with without three months’ notice. LICENSE FEES, &C, UNDER PROVINCIAL LAW. {4. All revenues arising under any provincial enactment within any provincial district from fees or other similar payments in respect of publicans’ licenses or other licences for the sale or the making of fermented or spirituous liquors or on billiard room or table license music or dancing license or auctioneering licenses or hawkers’ licenses or other licenses for carrying on any other business or as license fees for keeping dogs shall be paid to the public account and a separate account shall be kept thereof and the same shall be paid over to the Municipality or Road Board within which the premises in respect of which the license is granted are situated and in the case of 1 icenses not granted in respect of premises then the fees or other payment received in respect of such licenses shall be paid over to the Municipality or Road Board within which the person to whom the license is granted has his usual place of residence at the time of the license being granted and which pUce of residence shall be mentioned in the license All fines and penalties which may be inflicted upon owners of sheep or other persons under any provincial enactment aforesaid -providing for the introduction or spread of disease in sheep and for the care or remedy thereof shall be paid into the public account and a separate account shall be kept thereof as aforesaid and the same shall be paid over to the Municipality or Road Board within which the fine or penalty was actually incurred and if any such fine or penalty shall have been inflicted upon a person in respect of sheep depastured on or being in more than one such municipality or district then the fine or penalty shall be equally apportioned between such municipalities or road districts as the case may be. GOLDFIELDS REVENUES. 15. Notwithstanding anything to the contrary contained in the Public Bevenues Act 1867 or any other Act the revenues arising within any provincial district under the provisions of the Goldfields Act 1866 or any Act for the time being in force relating to the raining for gold in respect of miners’ rights business licenses or otherwise in respect of the occupation lor wining purposes oi

Crown lands and the revenues arising within any provincial district under the provisions of the Gold Duties Act 1870 or the Gold Duties Act 1872 shall in ease be deemed to be revenue arising from the occupation of the waste lands of the Crown but all such revenues shall be placed in defraying ihe costs charges and expenses incident to the management and administration of the goldfields within such provincial district Such revenues shall also be charged with the payment rents or other sums of money which may be payable by her Majesty the Queen or by the Governor of the colony to the native owners of any land leased or otherwise occupied for gold-mining purposes under the Goldfields Act 1866 or any Act amending the same or any other Act for the time being in force relating to mining for gold The Governor in Council may until the end of the session of the General Assembly next after the date of the abolition of the provinces of which any provincial district is composed by order in Council regulate such costs charges and expenses and thereafter the same shall be regulated by Act of the General Assembly. APPROPRIATION OP LAND FUNDS. 16. A separate account shall be kept of the land fund arising within each provincial district and the same is hereby appropriated and charged as hereafter provided (1) With the payment of the interest and sinking fund of all loans debts and other liabilities which at the date of the abolition of the provinces comprised within the provincial district were chargeable against the province (2) With the cost of surveys and the general administration of waste lands within the province comprised within the provincial district (3) With the annual payments to the Government bodies of the several road districts within the provincial district by way of endowment of sums of money to be computed in the manner provided in the nineteenth section thereof Provided that any appropriation made by the General Assembly for the present financial year for the purposes of education or for buildings for the purposes of education within any provincial district shall be deemed and taken to a liability chargeable upon the land revenue of such provincial district Provided further that if at the date of the abolition of any province any of the land revenue of such province shall be invested or deposited in any [manner such laud revenue shall subject to the provisions of this Act be dealt with under this Act as land revenue of the provincial district in which the same shall be so invested or deposited as aforesaid. 17. If in any case it shall happen that the land revenue raised within any provincial district for any one year shall bo insufficient to meet the charges imposed upon it by the last preceding section hereof it shall be lawful for the Colonial Treasurer in the manner provided by The Treasury Bills Regulation Act 1868 to borrow and raise such a sum as shall be sufficient to make up the deficiency in the land revenue of such provincial district for any such year The sums raised under such Bills and all interest to accrue due thereon and all charges incurred in the preparation or circulation of such bills shall subject to the provisions of this Act be charged upon the future land revenue arising within the provincial district and may from time to time be charged in account against such last mentioned land revenue The amount to bo raised under this Act by such Treasury Bills shall not in any one year exceed the sum of one hundred thousand pounds. 18. The residue of the land fund arising within each provincial district after the deduction aforesaid will be considered as divided into two equal parts and shall be charged as follows (I) One part thereof shall be applied in and towards maintaining and promoting immigration into the provincial district in accordance with the provisions of the Immigration and Public Works Act 1870 and the several Acts amending the same and with such proportion of the maintenance and support of charitable institutions as shall from time to time be fixed in accordance with this Act (2) The other part shall be subject to the appropriation of the General Assembly for the construction and maintenance of public works within the provincial district For the year ending the thirtieth day of June one thousand eight hundred and seventy-six the portion of the said residue hereby charged with the promotion and maintenance of immigration shall not be applied for that purpose The said portion of the laud fund hereby devoted to maintenance and support of charitable institutions shall be subject to the appropriation of the General Assembly for the purposes aforesaid provided however that until the end of the session of the General Assembly held next after the date of the abolition of the province com prised within the provincial district the expenditure of the said portion of the land fund arising therein shall be regulated by the Governor in Council provided further that not more than a tenth part of the said revenue shall be appropriated or set apart for such purposes. 19. There shall be paid annually out of the land fund of each provincial district to the Government bodies of the several road districts within such -provincial district by way of endowment a sum of one pound for every pound of general rates received within the road district Provided always that if the governing bodies of any road district shall have made and levied within any year a general rate or rates exceeding in the whole one shilling in the pound on the annual value to let of the rateable property then only such portion of sura actually received by such governing body in respect of such general rate or rates as shall bear to the whole sum so received the same proportion which one shilling bears to the whole amount in the pound so made as general rates in such year shall for the purposes of the payment to be made to such governing body by way of endowment be deemed to have been received by the governing body Where any such general rate shall be an acreage rate then the governing body of the road district in which such acreage rate shall be in force shall not be paid a greater sum by way of endowment than they would have been entitled to if the general rate or rates not exceeding one shilling in the pound on the annual value of the rateable property to let had been in force in such district. If it shall at any time appear to the Governor that the endowment payable to any such last mentioned governing body exceeds a sum calculated upon a valuation rate as aforesaid the Governor may direct a valuation to be made in such manner as he shall think tit for the purpose of ascertaining the endowment to be paid as aforesaid. 20. There shall be paid annually out of the consolidated fund to the governing body of

every road district and municipality within each provincial district by way of endowment a sum of one pound for every pound of general rates received within the road dis trict or municipality Provided always that if the governing body of any road district or municipal ityshall have made and levied within any year a general rate or rates exceeding in the whole one shilling in the pound on the annual v due to let of the rateable property then only such portion of the sum actually received by such governing body in respect of such general rate or rates as shall boar to the whole sum so received the same proportion which one shilling bears to the whole amount in the pound so made as general rates in such year shall for the purposes of the payment to be made to such governing body by way of endowment be deemed to have been received by the governing body where any such rate be an acreage rate then the governing body of the road district in which such acreage shall be in force shall not be paid a greater sum by way of endowment than they would have been entitled to if a general rate or rates not exceeding one shilling in the pound on the annual value of the rateable property to let had been in force in such district If it shall at any time appear to the Governor that the endowment payable to any such last mentioned governing body exceeds a sum calculated upon a valuation rate as aforesaid the Governor may direct a valuation to be made in such manner as he shall think fit for the purpose of ascertaining the endowment to be paid as aforesaid. 21. On or before the first day of June in each year the governing body of every road district and municipality within any provincial district shall cause to be prepared and transmitted to the Colonial Treasurer a true and detailed account of all moneys actually received within such road district oi municipality as and for present rates in the year ending the 30th day of April then last past No such account shall avail for the purpose of this Act unless it be verified by the solemn declaration of • the chairman of the Road Board or the Mayor of the municipality as the case may be The annual payments to be made to governing bodies by way of endowment shall be calculated upon the amount shown to have been actually received by such governing body as and for general rales as aforesaid up to the thirtieth day of April in every year provided that for the current financial year a pro rata contribution shall be made to such governing body at the rate aforesaid based upon the amount shown to have been received for general rates as aforesaid up to the thirtieth day of April last. 22. Notwithstanding anything contained in any Act or law to the contrary the proceeds arising from the sale lease or other disposition of lands taken under the New Zealand Settlement Act 18G3 and any Act amending or continuing the same shall be deemed to be land revenue rising within the provincial district in which such lands shall be situated and be subject to the provisions of this Act. COST OF POLICE GAOLS ETC TO BE BOENE BY ORDINARY REVENUE. 23. The costs charges and expense of police gaols harbors hospitals lunatic asylums charitable institutions and of education through the colony shall be borne on the consolidated fund so far as such costs charges and expenses are not otherwise by law provided for. MISCELLANEOUS, 24. Nothing in this Act contained with respect to the appropriation or division of the land fund shall be deemed to alter or affect the liability of the colony to the public creditor or to affect any permanent appropriation of or charges upon such revenue under any law in force in the colony. 25. Wherever under an Act of the General Assembly passed or intended to be passed in the present session the short title whereof is the Local Government Act, 1875, any shire shall be constituted such shire shall for the purposes of this Act be deemed to staud in the place of the several road districts |or parts v of road I districts of which such shire shall be composed and after the constitution of any shire all moneys which under this Act would have been payable to the Road Boards of which such shire is composed shall be paid and payable to the governing body of the shire All the preceding provisions of this Act so far as applicable shall extend and apply to a shire and to the governing body of such shire and to the chairman of the Shire Council as the case may be. 26. In all cases in which no provision or no sufficient provision is in the opinion of the Governor made by this Act it shall be lawful for the Governor from time to time until the cud of the next session of the General Assembly for the purpose of facilitating or more effectually carrying into execution any of the objects thereof to make and piescribe all such regulations and orders from time to time to revoke or alter as to the Governor shall appear to be requisite and all such regulations and orders shall be published in the Now Zealand, Gazette and being so published shall have the force of law. 27. The Colonial Treasurer shall issue and pay out of the public account all moneys which may become payable under the provisions of this Act.