GENERAL ASSEMBLY.

Globe, Volume VIII, Issue 967, 1 August 1877, Page 2

GENERAL ASSEMBLY.

[by telegraph, per press agency.] LEGISLATIVE COUNCIL. Tuesday, July 31. Sir Francis Dillon Bell was sworn in, and took his seat, as a member of the Legislative Council. LOANS. It was agreed that there should be laid on the table all correspondence between the Government and the Banks of New Zealand and New South Wales relating to a. loan of half a million obtained from each of these Banks. pills. A Bill to encourage the planting of trees was introduced. The Constabulary Bill was passed. Other Bills were considered in committee. HOUSE OE REPRESENTATIVES. Tuesday, July 31. The House met at 2.20 p.m. OTAGO DISTRICT RAILAVAYS. Amongst the notices of motion given Avas one by Mr Macandreav, asking the House to order that several railways be constructed forthwith, for opening up the outlying districts of Otago. WEATHER REPORTS. Mr Burns gave notice to move for a committee to enquire into the system of weather reporting and storm signalling. JIANHOOD SUI'ERAGE. Sir Gkorge Grey: gave notice to move for triennial Parliaments, and the granting of suffrage to every male twenty-one years of age. PENNY SAVINGS BANK. Mr Stout gave notice that he would ask what steps the Government have taken with a view to the establishment of Penny Savings Banks. ALLEGED LIBEL. Mr Rees gave notice that he would ask whether the Government is bearing the cost of the libel case, Russell v. " Waka Maori," now going on in Napier. CODIFICATION OF LAWS. Mr Rhes gave notice that he wouldjmove for a Select Committee to inquire into the proceedings of Courts with a view to the codification of the laws in New Zealand. LOCAL GOVERNMENT. Mr RoLLESTON asked whether the Govcrnment would print the suggestions of County Councils and Road Boards as to amending the future system of Local Government. Mr Whitakkr said they were too voluminous and the expense of printing would be too great. THE RATING ACT. In reply to Mr RICHMOND, Mr WitiTAKER said it was not the intention of Government to relieve the Road Boards from the compulsory annual valuation as laid down in the Rating Act. THE MERCER RAILWAY. Sir G. Grey asked whether any steps were being taken for extending the Mercer railway to Taranaki. MrOiiMojfD gaid the next piece- they in-

tended to construct was the extension to Waikato, and that could not be completed within twelve months. THE "NEW ZEALAND PILOT." In reply to Mr Hunter, Mr McLean said that a further supply of a revised edition of the " New Zealand Pilot " had been ordered, and would be purchaseable at any CustoniHouses in the colony. AKAROA COURT AND POST-OFFICE. Eeplying to Mr Montgomery, Mr Whitaker said there had been no correspondence with regard to erecting a Courthouse and Post-office at Akaroa. INSPECTION OF MAPS. In reply to Mr Stevens, MrßsiD explained that the reason fees were charged for inspecting public maps in land offices in Canterbury was because the maps referred to were of a very valuable nature, and it was not deemed proper they should be open to indiscriminate inspection by the public. MARINE ACTS. Mr McLean, answering a question by Mr Tole, said that an Act was being framed consolidating all the Marine Acts of the colony, and that it woidd be brought down this session. CLOSING TOWN CEMETERIES. Mr Stafford asked whether the Government will introduce a Bill to provide for the closing of all cemeteries within towns, and whether they would provide for the efficient drainage of all Government buildings ? Mr Whitaker said they hoped to be able to do something during the present session, and they would provide for the drainage of Government Buildings wherever required. TELEGRAPH STATION. Mr Tole asked if the Government intended to establish a telegraph station at Panmure ? Mr McLean said there was nothing to justify the Government in erecting one there. HIGHWAY DISTRICTS VALIDATION PILL. The Highway Districts Validation Bill was read a second time, went through committee, and was passed. CROSSED CHEQUES. In committee on the Crossed Cheques Bill, Mr Swanson moved an amendment to clause 2, to the effect that no cheque under £2O should be treated as a crossed cheque, on the ground that giving crossed cheques was frequently productive of very great inconvenience to poor working men. Several speakers pointed out that these evils were more imaginary than real ; that the drawer of the cheque was not the proper person to cross it, but the one who received it f he chose. Mr Wason pointed out that he knew of farm laborers being paid with crossed cheques, and being for six or eight weeks unable to obtain their money. Cheques were frequently crossed knowing that they woidd not be cashed. Mr Murray moved that £lO be substituted for £2O. Mr Montgomery moved that the drawer of a cheque for wages should not cross it, under a penalty of £lO. A division was taken on Mr Swanson's amendment, which was lost by forty against twenty-five. Mr Murray's amendment was lost on the voices. Mr Stout moved the insertion of the word " fifteen," but this was negatived on the' voices. Mr Montgomery's amendment was also negatived. The Bill was then passed without amend nient. CHARITABLE INSTITUTIONS. The adjourned debate on the Charitable Institutions Bill was resumed. Dr. Hodgkinson said that the Bill ought to have been summarily rejected. It threw the whole burden of supporting charitable institutions upon a very few. The system was tried in England some centuries ago, with the most unsatisfactory results. He also objected to putting the burden proposed upon the Consolidated Fund. The whole thing was merely of a piece with that system of deception which marked the regime of the present Government. The lion member then quoted several noted economists opposed to the destitute being provided for by voluntary contributions. The State ought to provide. Sir R. Dovglas objected to saddling the cost of keeping the poor on particular districts instead of distributing the burden upon the whole colony. He wanted to know whether the Government would assist the country districts in obtaining cottage hospitals. Mr Fox regretted that the mover of the Bill did not afford the House more information than he did on the question of social relief —of its working in America and in the various British colonies. The question had never been faced before in the colony, but it imperatively demanded immediate attention. He had no objection to voting for the second reading, provided the Government agreed to the insertion of a clause bringing the Act into operation for only a year, and that in the meantime a commission should be appointed to collect data and information upon the subject, so that they might have something more to guide them in framing the measure than at present. He approved of the idea of compelling the localities to deal with the exigencies of the case face to face. Sir G. Grey moved the adjournment of the debate at 5.30 p.m. THE FINANCIAL STATEMENT. The Colonial Treasurer (the Hon. Major Atkinson) made his Financial Statement on the House re-assembling in the evening. He said that it was true we had reached that, point in the Scheme of Public Works and Immigration when the revenue was suffering to the greatest extent possible from the large unproductive expenditure upon railways in course of const ruction. It was also true that there existed a feeling of uneasiness, amounting in some quarters to anxiety, because of the belief that the services of the year could not be provided for except by increased taxation. Knowing the strong desire which therefore arose for early information, he had taken the first opportunity afforded by the rules of the House to state the financial policy of the Government. He meant in his statement to direct attention to broad features only. Tho details would be found in the usual tables. He would first describe what had been done under the Loan Act of last session, which authorised the raising of one million for defined purposes. When authority was asked for he staled lus belief that the money could be raised in the colonies, and that, if eo, the Government would gladly avoid going upon the London market for at least a year. That belief had been realised. His colleague Mr M'Lean had negotiated in Sydney with the Bank of New South Wales for an advance cf half a million, secured upon short-dated debentures bearing live per cent interest, pay.

able half-yearly in Wellington, and one half per cent commission; the principal repayable in London, in three equal instalments at intervals of one month, the first instalment ailing due on Ist December, 1878. From the Bank of New Zealand they had obtained £500,000, secured upon short-dated debentures bearing five per cent, interest, payable half-yearly in Wellington; the principal repayable in London upon the 25th February, 1879. A further arrangement with the Bank of New Zealand had also been made by which, under the Bank agreement, an advance of £400,000 could be obtained upon remittable security, instead of £300,000, making the total advance under that arrangement £500,000, and fixing the 15 th February, 1879, for the repayment of all such advances. The appropriations last session for immigration and public works amounted to £2,082,286. There had been expended up to June 30th £1,480,617, so that there had been a saving of £551,688 during the year on the amount voted. In asking for so large a sum he pledged the Government to limit the expenditure as far as was compatible with prudence, care being taken that injury should not be done to the public service, and, though complaints might be made that some districts had been neglected, the Minister for Public Works could, no doubt, be able to satisfy the House, not only as to what had been done, but as to what had been left undone. The votes on which the largest savings had been made were —Eailways, on which the expenditure had been £333,000 less than the estimate ; Water Supply on Goldfields, £61,000 less; Land Purchase, North Island, £40,000 less; and Eoads, £36,000 less. The other savings included £22,000 on Immigration, and about the same amount on Public Buildings ; £23,000 on Lighthouses; and £12,000 on Telegraph Extension. Taking the Public Works account as a whole, the ways and means had been £11,500,000 from loans, including £750,000 out of the loan of 1876, and £340,620 from receipts in aid, including £264,657 from Stamp Duties up to December last. There was thus a total of £11,840,620 of ways and means. The expenditure up to June 30th amounted to £10,860,431, so that there was on that date a balance of £980,189. The principal items of the expenditure had been —Eailways, £6,129,920 ; Immigration (including location), £1,517,509 ; Eoads, £894,571; Land Purchases, North Island, £533,500; Water Supply on Goldfields, £405,063. The charges of raising the loans had amounted to £498,532; and interest and sinking fund represented £218,500. Of the balance of £950,189 there would be required £645,957 for works under contract or about to be let. It was proposed to ask for appropriations amounting to about £1,274,676, and if these were granted additional ways and means amounting to about £990,413 would be required for this account during the year. Next, as to Provincial liabilities. Treasury bills for £IIO,OOO had been issued under the power given by the Appropriation Act of last year, and the proceeds had been applied in the terms of that Act. In making advances to the provincial districts of Auckland, Wellington, and Wcstland out of the 1876 loan a quarter of a million was appropriated to meet the provincial liabilities falling due between the Ist ot Jan. and the 30th of June. There had been transferred to the several provincial liabilities accounts for that purpose £237,500, leaving £12,500 to defray the appropriation of the cost of raising the loan, the balance being applicable to outstanding liabilities. Taking the provincial liabilities account as a whole, the receipts up to June 30th had been £620,951, and there was a balance of £45,888 to be applied. The Government regarded the compensation paid to provincial officers whose services had been dispensed with as being properly provincial liabilities. The amount so paid would, therefore, be included in a statement of unauthorised expenditure, which the House woidd be asked t o cover by a vote. Before concluding this part of my subject (continued the Colonial Treasurer), the Committee will perhaps allow me to say a few words about our public debt. The gross public debt of (he colony, General and Provincial, including Treasury Bills, when the] balances of nil lpans jiow are raided, will bc£20,5G5,311As against this debt we have a balance of £080,189 10s Id at the credit of the Public Works Account on 30th June ; £35,416 18s 9d at the credit of the Defence Loan Account, and accrued sinking funds amounting to £1,353,563 2s lOd. Our total revenue last year was £3,061,594 10s 4d, and, excluding land sales, £2,171,059 13s ; that is, after setting apart that portion of our income derived from the sale of land, which in most colonies is called revenue, our net public debt is eight and a-half times our revenue, or, if we include our income from land sales, our public debt is equal to six times our revenue; >yhile the public debt of Great Britain js more than ten times the amount of her revenue. This seems to me a far fairer way of comparing our indebtedness than at so much per head of the population. It should moreover be remembered that the public debt of England has been incurred for war purposes, while that of New Zealand has unduly been incurred for reproductive works. It may perhaps be interesting to state the purposes for which the several loans, general and provincial, which constitute our national debt have been raised, and the amount applied to each. I have ascertained by an examination of the several Loan Acts that those purposes and amounts may be classified thus : —About £.8,000,000 has been spent upon railways, £3,500,000 on immigration, £400,000 on harbours, lighthouses, public buildings, roads, bridges and other public works for opening up the country ; £1,300,000 in flic purchase of native lauds, including the payment of the debt to the New Zealand company; £2,000,000 in the suppression of Jhe native outbreak, anil the ' remaining £5,000,000 on miscehVieous purposes. pur 1870-77 flu.' expenditure, as authorised by parliament, exelusjye of that tor railways, Was £1,858,467, and there had been a saving pf £194,084 froiq the votes. Qf that amount £73,323, under the head of interest and sinking funcj, was mainly due to a year's interest on £1,250,000. having been' provided for, and only a halLyear's payment being necessary. Deducting this, there would still remain a a saving of £L23,500 on the appropriations for the year. The amalgamation qf the Armed Constabulary with the Police Force of the Colony had enabled a considerable reduction to be made in the cost of those services, but, owing to the necessity of paying a bonus to the men discharged, the saving fofl the six months amounted only to about £IO,OOO. The estimates of expenditure upon railways and the revenue from them during the year were necessarily contingent upon the progress of works, and therefore the had been omitted. In comparing actual expenditure with revenue under each head, there had been a diminution, owing to certain extensions

not being opened as early as had been anticipated. He last session estimated a profit of £84,000, the receipts being set down at £315,000, and the expenditure at £260,778 ; but it was a fact upon which the colony might well congratulate itself that the profits from railways had been £87,924.; during the year the receipts had been £316,220 and the expenditure £228,293. He would now refer to the Consolidated Eevenue. His estimate was that the surplus with which to begin 1876-77 woidd be £50,052, but it had proved to be £61,027. The total receipts under this head were estimated at £1,691,850, but they had reached £1,614,583 only. The Customs revenue showed a deficiency of £40,621, but, looking at the disturbance of trade throughout the world, -and to the uncertainty of the wool market during the year, the Government were prepared to find tire deficiency larger, and probably hon. members wore similarly prepared. The postal revenue appeared to have fallen £9452 below the estimate, but sums amounting to £15,923 had to be received from the , Imperial and 1 Australian Governments, so that the seeming deficiency would be converted into an '_excess of more than £6OOO. In incidental receipts there was a deficiency of £18,447, but receipts under this head can never be estimated with more than an approach to accuracy. To the £1,614,582 received into the Consolidated Fund he added, first, the profits on the railways, £87,924 ; the £IO,OOO transferred from the State Forests Account; the 2 per cent, recovered from the Land Fund under the Financial Arrangements Acts amounting to £71,997; the surplus at the beginning of the year, £61,027; and the assets yet to be realised. These made a total of £1,882,249. The total revenue for the year, as estimated, amounted to £2,146,902, or, exclusive of railways, to £1,801,902, to which must be added the estimated profit on the railways, £84,244, making as estimated receipts for the year £1,886,144, while the actual receipts were £1,882,249, being £3895 less than the estimate. The transactions of the year might be summarised thus : —Actual expenditure, including liabilities, £2,024,572. Actual revenue, including realisable assets, £2,172,792 ; leaving a balance of £148,220 as a surplus with which to begin 1877-78. Comparing 1876-77 with 1875-70, the foiling off in the Customs revenue was but small, and notwithstanding it, the revenue of the Consolidated Fund, including revenue assets of the year, showed an increase of £238,276. The receipts from the land fund during the year (exclusive of gold duty) were £1,039,242, or £419,000 more than the average for the preceding seven years. Since the Ist of January (said the Colonial Treasurer) when the Financial Arrangements Act came into force, the receipts have been ,-€544,454. The estimate was £322,610, so that the estimate is exceeded by £221,884, but I regret to say that although there is a very large increase, on the whole the deficiency is larger than was provided by the Financial Arrangements Act. The sales in Canterbury show an enoi'iuous excess ; while those in Auckland, Taranaki, Hawke's Bay, Nelson, and Otago have proved to be less by £83,000 than the sum estimated. In consequence of this the whole of the Treasury Bills authorised under the Financial Arrangements Act, amounting to £150,000, have been issued, and an additional sum of £53,005 has had to lie advanced from the Consolidated Fund in aid of the Land Fund. The business done by the Post Office Savings Bank has been satisfactory, and the deposits remaining on June 30th were £720,000. The year's transactions in the Annuity and Assurance Department had been most satisfactory, and l'ellected great credit upon all connected with the Department, but as it was intended to bring in a Bill to establish a Board of Management instead of leaving the direction in the hands of a Commissioner, he would not now trouble the committee with remarks or details. The proposed total expenditure for the year 1877-78 was £3,109,754. The cost of most of the departments had been reduced through amalgamation and simplification, although the \\oxk had in many cases nearly doubled. Ho regretted that more had not been dqne hi this dU'-oction, owing to want of lime, in consequence of the enormous amount of work which had fallen upon the Government through the constitutional changes it had been their business to inaugurate during the recess. Under the head Public Departments £30,000 was included for Hospitals and Charitable Aid. This was meant to provide the subsidies which would probably be payable under the Charitable Institutions Act. Authority would be asked to deduct from the subsidies to Counties, Boroughs, and Eoad Boards a sufficient sum to maintain Hospitals for charitable purposes in districts which declined to adopt the Act in which it proved insufficient. The House had already been informed of the provision meant to be made for Education. A large increase, amounting to £10,989, had been found necessary in the. vote for Militia and Volunteers, but it was chiefly on account of stores, and ammunition, and capitation for an, increased number qf Volunteers. The saving effected by the amalgamation qf the Police and Armed Constabulary was eq\ial to £33,000 a year. Referring next to ways and means for the current year the Colonial Treasurer said :—" As I have first shown, we have to provide for an aggregate expenditure of £3,109,754 Is 9d for the year. Of this £2,394,516 12s 9d is chargeable upon the Consolidated Fund, on the Gold Eevenue £72,000, and £643,208 upon the Land Fund, being such charges only as each fund should support. Now, if all the charge:; placed, upon the Land Fund of pach disi/riot/could be recovered, the Consolidated Fund would be in a position to bear its legitimate bindens without difficulty. As a matter, of fact, howevor, T do not think that more than £500,000 of that Mini will be practically recoverable, the Land Fund in certain districts being insufficient to meet its'liabilities. If will thoroi'o.i'e \>c necessary cither to the Consolidated Revenue or yo relieve it of some of the charged I have proposed that it should bear. I "dismiss, sir, as altogether imdesivable, theplan of charging such as Police anq Education upon the Land Fund of districts which are ab}e tq h,aac, them. They are charges wnifai, in the opinion of the Government, should bo borne upon the Consolidated Fund, aided, if necessary, by local rates. The committee agree with me that it would be unwise to charge \] A c }aud fund any of the seryip.es \ have proposed to place upon the Consolidated Fund. It follows that the only coui'so opon to us is to increase that fund up to our requirements. I say that it follows that for the present year this is the only course open to us, because I have satisfied myself that it is impossible so to red-ace departmental expenditure as to bring our expenditure within our income unless wo are prepared to relinquish some of the business we enjoy in

the way of Telegraph and Postal Services, and Resident'Magistrates' Courts, which arc spread broadcast over tic land, and which, as far as my experience goes, it is hopeless to attempt to reduce. I take it for granted, then, that wc must at any rate temporarily aid the Consolidated Fund, and the question is how is this to be done ? I know, sir, that many persons whose opinions are entitled to great weight, from their position and their knowledge of the colony and its requirements, think that the time lias arrived for levying a property and income tax, and if we were now in a position to deal with the question of the readjustment of taxation, much might be said in support of such a tax. For my own part, I am very loth to open the question of taxation at present. Our liabilities, being what they arc the subject of taxation is not lightly to be touched. It is one which requires the most careful thought. It must be considered as a whole, and it would be quite impossible to deal with it satisfactorily during the present session. When our trunk railways are approaching completion —when we have bad time to consolidate and settle down, and are able to determine our real requirements —then the whole incidence of taxation must be considered ; but to deal with it now in a fragmentary way woidd, I think, be a serious mistake. For the reasons first stated, and because we think our requirements for the year can be met in a way which will be far more satisfactory to the country and which is fair and reasonable, I shall not propose additional taxation this year ; and 1 venture to hope that additional taxation may be altogether avoided, if wc obtain from our railways that income which seems now assured, and if wc are successful in the inscription of our stock. But here, sir, it is necessary that I should recall the attention of hon. members to two principles which have been clearly recognised as underlying all our legislation relating to waste lands and to immigration and public works. Those two principles are— First, that ths land fund shall be localised ; second, that the cost of immigration, roads, and railways is a proper charge against the land fund. These principles have been constantly recognised; and, though it is true that they have not been continuously acted upon, yet the recognition of them crops up in our legislation at almost every turn. By the Provincial Governments and Legislatures which have hitherto had the practical control of the land revenue the second of these principles has always been acted upon; but in this House expenditure upon immigration, roads, and railways has boen from time to time charged against the Consolidated Fund, as that fund has beer, found able to bear it. But these two important principles have never been abandoned or lost sight of by Parliament or the country. With reference to the localisation of the land fund, it is necessary that wc should distinctly define in our own minds the meaning of the term. The moaning which I attach to the term localisation of the land fund is that the money received for the sale of the Crown lands within a district should be spent in opening up and peopling that district. I am not, sir, now going into the question of what is a district. That would open up far too wide a field altogether. For the purposes of my argument I shall accept the districts as they are, although it should bo noted that Parliament has always claimed and exercised the right of altering the boundaries of these districts from time to time. Most hon. members will go with me so far. At any rale those will who, like myself, think that the proceeds of the land should be applied to the end that those who pay the most should receive the greatest facilities for occupation, and that to treat laud fund as ordinary revenue is thoroughly bad in principle. Some few will desire to go even further. But, sir, further than this in localisation I am no.t prcpai-ed to go. For when the money has been spent in opening and peopling the district, the objjeet of localisation is accomplished. Our duty to the land is fulfilled,. And there, in my Opinion localisation cutis. Holding, then, ay I do, the opinion that with the proceeds of the land it is the duty of the State to open and settle the' land, it seems to me not only no violation of the principle of localisation, but merely an extension of it, to say that if the State finds the money beforehand for these purposes, such an expenditure should be made a charge against the land fund ; and that it is in accordance with the principle of localisation to charge against the land fund of cgfifi district any sum not excced.mg;' t«i) amount expended within that district' in any way which Parliament may' determine is the most convenient.' Now there has been raised for railways and immigration a sum in round numbers of £9,500,000, the whole of which is fairly <\ liability of the land fund. The annual t chawse on, this sum for interest and siy;ki>.ig r\mq isabput £•185,000,. Out of, tins sun} there, had been expended' up \a the SJ,st IXecen;iber, 1876, the day on which yhc. accounts pf the late. pjyo,t VJJnces were, closed, a net sum of The colony had paid interest to the ampunt of £835,48.3, b,u> has only recovered from the province,; £00,413, so that in aid of i- : and Fund the Consolidated Fund has actually paid £655,130. The Colonial Treasurer stated the results of tables, showing how each district land had been benefited, and he then proceeded as follows— I have shown the extension to which the Com-. solidated Fund has been burdened fcv. s>j,e payment of interest and "W or moneys expended in tho work for which 1:1;3 i'Vmci "was localised, viz., the _ ; p.enn l ig "up and settlement of the country; and, applying tho arguments I have just used, I shall ask the House to re-affirm' the principle that moneys expended on these purposes are properly chargeable upon the Land Fund. We recognise that $t raespnf» moment to refund theso change 3 is. beyond tho immediate V^, VVOl ,'. °£ "s<?' less wealthy disBuj,; as rcsppcOj the provincial \\<aCn'uterliuyy and Oiagy, no aiiiJi iU'gtimenl cau. be urged, .Mid vy,i to charge the laud fund of with a sum of £58,000, and Wu. of Otago* with a sum of £JCS,GCm, being in each case one moiety of the amount by winch the land fund of thoso districts has been aided. With the ex.cs.y.ifci&n of a small permanent debt, th,p flo&yg© of two per cent for railways, tl\a subsidies payable to Counties and itoayds, and the'cost of surveys. a;nd administration, the land revenue of Canterbury is absolutely free ; and in view of the fact that a sum of £250,000 of surplus land fund lias been distributed within the district during the past six months, and that a further sum of £IOO,OOO is now ready for distribution, we propose to deduct her contribution from the sum in hand. The ease of Otago is somewhat different. The district baa a very large estate, though i'y is burdened now with lease.-; expiring and which would \j & of public money to etvaCvii We propose, therefore, sq. i'aiss ihs amount required to meet its con-

tribution, together with the sum of £36,000 advanced last year in aid of district Land Fund. Treating the debt as provincial liability, and making the interest and sinking fund a permanent charge upon its future Land Fund, the whole Land Fund of the Olago district for the year will then be free, excepting only the two per cent under the Financial Arrangements Act, the interest on its provincial debentures, the cost of survc and land administration. Tho relief to the Land Fund under the proposals of the Government is very considerable. In the southern provinces education was almost entirely borne upon the Land Fund under the provincial system, and considering that the whole cost for building and maintenance of schools, of police, of gaols, of lunatic asylums is now borne upon the Consolidated Fund, I do not think that the inhabitants of Canterbury and Otago will consider the proposition I have made unreasonable. And it must be borne in mind that when the colony has incurred a large expenditure for Public Works and Immigration, which is yearly improving the public estate —at a time when the burden of the expenditure on uncompleted works is most severely felt. The only possible means of maintaining the broad principle of localising the Land Fund is by taking care that all rightful charges upon it are fairly and justly met. The estimated total revenue of the colony for 1877-78 was £3,392,685. This total comprised £2,263,160 of consolidated revenue, £107,000 of refunds from Canterbury and Otago land funds, £72,000 goldfields revenue and gold duty, and £890,525 from land sales, licenses, rents, &c. The Customs Revenue was put down at the amount yielded last year, and on other items there was a slight increase. Railway receipts were estimated at £604,000, and the year's profit on the work done by the railways was set down, after very careful consideration, at £170,000. Adding to the estimated revenue tho surplus with which the year was begun, £118,220, there would be a total of £3,540,905. Deducting then the estimated expenditure, there appeared a surplus of £431,150. Of that 5uin"£329,369 was distributable amongst tho counties as surplus Land Fund, and there would remain a balance of £101,781 available to meet possible deficiencies of the Land Fund in certain districts. It had been found impossible to carry out a promise made last year, to submit (his session estimates for the completion of the Bailway system, and it had boen considered that delay was preferable to an incomplete ostimato for the purpose. Therefore the G-overnment would only ask this session for a sum sufficient to unite the already completed sections of the trunk line of 500 miles from Amberley to Kingston, and for an extension of the main lines in other parts of the colony. These works would be described in the Public Works Statement, and should the House approve of the recommendations that would then be made, additional ways and means to the amount of £910,443 would be required, The total proposed expenditure for tho year on Public Works would bo £1,796,451. Immigration services were estimated to require £124,182, and thero were Provincial liabilities to be met, amounting to £259,550. These sums made a total of £2,180,189 ; and, after allowing for the balance to credit of the Public Woris. account, £1,200,000 would remain, fc,v which ways and means would have to. ie provided. The £BOO,OOO of guaranteed debenturoe bad, in estimating Ways i.*iCt Means, been treated as cash applicable to Public Works. But the G-overnment were of opinion that those debentures should be freed and should continue to be held as an available soourifcy, against which advances could, bo obtained at a low rate of interest, If those proposals were approved, authority to raise a loan of £2,000,000 would hayp to be asked for. The Government could not recommend that any of the works which would be included in the Public Works statement should bo delayed; but if the House should resolvo to reduce the expenditure upon Public Works by, say, onehalf, then tho agreement with the Bank of New Zoaland would probably avoid the necessity for going upon the London market for another eighteen months, and uext session a complete scheme of works could, no doubt, be submitted. But this, he, repeated, was a course which the GoYdWi>s,eni eould not recommend the ic, adopt. The Colonial Treasurer, vn, Ixjh peroration, explained why the thought it most desirable the vuuntry should have time and rest for the complete development of the public works I system, and should not at present be troubled : by proposals for increas,od taxation or by j questions of constitutional changes, or the incidence of taxes. The proposals of j the C,o\; ; ea'E,m l ?nt would secure this state of i tHm&s., and,: he asked fov their early and most 1 carefid consideration, I The House- udjioamod about twenty minutes ! after n,\"h?,