GENERAL ASSEMBLY.

Globe, Volume XX, Issue 1415, 28 August 1878, Page 3

GENERAL ASSEMBLY.

LEGISLATIVE COUNCIL. Tuesday, August 27. new bills. In the Council to-day Colonel Whitmobb gave notice of Bills to Amend the Rating Act and the Counties Act. The Dangerous Goods Bill, Juries Act Amendment Bill, the Eoad Board Bill, and Martin Annuity Bill were read a first time. OFFICEBS OP THE COUNCIL. On the motion of Sir Dillon Bell re officers of the Council, a long discussion took place. In the opinion of Sir D. Bell a Ser-geant-at-Arms and Usher of the Black Rod were not necessary for the dignity of Parliament. He however recited the opinion given by him when Speaker, that the Commons did not interfere with the officers of the Lords, and that the precedent should he followed here. . , , Colonel Whitmobb said that the item had come on in Committee of Supply somewhat by surprise, and therefore was not explained by the Government. He took some of the onus of the appointment of Captain Humphries, who had been a civil servant, and was dispensed with without fault of his own. The discussion was finished by referring the matter to the standing orders committeee to consider the beßt means of agreement between the Houses upon the question of officers of the Council. NELSON HABBOB BILL. The Nelson Harbor Bill was referred to a Select Committee. THE BABBIT NUISANCE BILL. The Rabbit Bill was read a second time, after considerable debate, and referred to a Select Committee. BILLS ADVANCED. i The Fraudulent Debtors and Friendly Societies Bills passed through committee without amendments. The Oamaru Waterworks Bill was discussed till the hour for adjournment. HOUSE OF REPRESENTATIVES. Tuesday, August 27. The House met at 2.30. PETITION. A petition was presented on behalf of Dr. Buller, in regard to certain land purchase claims of his against the G-overnment. Mr Kelly explained that a breach of privilege had been committed by all the evidence taken in Dr. Buller's case last year having been published as a broadsheet, and further that a very large portion of such evidence was embodied in the present petition. He moved that the petition be not received. After some discussion, Mr Stout suggested that, as the petition was highly irregular in its present shape, it should be withdrawn, and presented in the usual form of petitions. ! The matter ended by Mr Richmond withdrawing the petition, and Mr Kelly his motion. ADJOUBNMENT. Mr Bastings gave notice to move that the House sit next Monday and rise on Wednesday week at 5 30 until the 9th of September. GOVEEVMBNT MEABUBES. In reply to Major Atkinson, Mr Ballance said they proposed to take the second reading of the Land Tax Bill on Friday next, when they would take the debate on the financial proposals of the Government generally. JAPANESE COMMISSIONEBS. Mr Ballance read a reply from Victoria to the effect that the Japanese Commissioners had left Victoria some time since. SALABIES OF JUDGES. In reply to Mr Bowen, Mr Shebhan said the Government did not intend this session to introduce a Bill dealing with the salaries of the Judges of the Supreme Court. cantebbuby magistrate's coubts. Mr Roileston asked the Government if they would furnish a return showing amounts in fees and fines in several R.M. Courts in Canterbury during the year ending 30th June, 1878, also the expenditure in Bame courts for that period. Mr Shbehan said the Government had no objection to furnish the return at once. TOLLS. Mr Tole gave notice to move to-morrow that the Government abolish the system of tolls in the county of Eden. PIBST HEADINGS. Several Bills were introduced and read a first time. CIVIL SEBVICE BILL. In considering the Civil Service Act Amendment Bill report. Mr Delatoub moved for the insertion of a clause to the effect that all resident magistrates and clerks of district and R.M. Courts appointed before 1866 now in the Government service, and who have been continuously employed therein, shall have all the rights and privileges conferred by part 5 of the Civil Service Act, 1876, notwithstanding that the salaries of such officers may not have been continuously appropriated by the Colonial Legislature. A good deal of objection was taken to the recommittal of the Bill in order to consider the new clause. Mr Pyke strongly maintained that justice ought to be done to those gentlemen, and contended that, they were, and always had been, civil servants. Mr Saundebs opposed it, on the grounds that all these officers accepted their appointments knowing them to be only temporary. Mr McLean pointed out that they only occupied the same position as other provincial servants not entitled to any different payment. A division was called for, and the clause rejected by 44 against 22. The House again divided on the motion, that the Bill be now read a third time—Ayes, 48 ; Noes, 15. The Bill was then read a third time, and passed. SAVINGS BANK PBOPITS BILL. On the motion that the Savings Bank Profits Bill be read a third time, a division was taken, and the Bill ordered to be read by 30 against 27. The Bill waß then passed. ADMINISTBATION BILL. The House was in committee on the Administration Bill until the rising at 5.30. EVENING SITTING. The House resuming at 7.30. BILL ADVANCED. Progress was reported on the Administration Bill, and leave given to sit again tomorrow. PUBLIC WOBKS STATEMENT. Mr Macandbew then proceeded to deliver his public works statement. He was greeted with loud applause. The delivery of the statement occupied about an hour and a quarter. The hon. gentleman sat down amidst loud applause. L The statement will be found below.] LAND NEAB BAILWAYS. Mr Stout then said the G-overnment had advised the Governor to withdraw from sale all Crown lands in the vicinity of railways, especially in Canterbury district, so as to prevent I he operations of land speculators. The House thereupon adjourned. THE PUBLIC WOBKS STATEMENT. «. The following summary of the Public Works Statement is supplied by the Government : The Hon. Mr Macandrew commenced the delivery of his Public Works Statement on Tuesday evening by alluding to the changes he had made in the organisation of the department, placing the working railways under the management of a commissioner for each Island, as recommended by the railway committee lust session. The other principal recommendation of that committee, relating to the leasing one of the Auckland iines, had not been acted upon, and required grave coneideration. In the meantime, he was much in favour of the State retaining the management of its railways in its own hande Railway tickets would shortly be sold 11 the chief centres otherwise than at railway stations. Although the returns on one or two email lines had not paid working

expenses, yet they would on the whole be regarded as satisfactory. WOBKING BAILWAYS —MIDDLE ISLAND. Seven hundred and forty miles were open, of which ninety-four were opened during the past year. The net balance of receipts over expenditure, available for payment of interest, was £145,346, against £IIB,OOO for the previous year, showing a percentage on the whole outlay for construct ion of 2'6s—a not unfavorable result, seeing that some of the lines included in the outlay had only been opened recently, and others were still unfinished. The total number of passengers was 1,159,147. The working expenditure on the Dunedin section had been heavy, owing to £36 per mile having to be spent on new rails and fastenings. The Working Expenses—The working expenses on Christchurch section had been considerably reduced. It was not intended to create a sinking fund for wear and tear, but to charge repairs as needed to the current expenditure of working. The earnings per mile had been —Christchurch section, £764 10s 7d per mile per annum ; Dunedin section, £lO7l 19a 5d per mile ; and Invercargill section, £331 3s Id per mile. WOBKING BAILWAYS—NOBTH ISLAND. 311 miles were open for traffic, of which 99 were opened during the past year. The nett balance of receipts over expenditure available for payment of interest was £18,656, against £13,656 for the previous year, showing a percentage on the whole outlay for construction of 15s. The total number of passengers was 313,728. BAILWAYS UNDEB CONSTBUCTION. The reduction in the head office salaries, by the substitution of an engineer-in-charge for each island, instead of an Engineer-in - Chief, and other changes would amount to £3OOO. The change was likely to work well, and be beneficial to the service. It had been alleged that the changes, by which the construction of public works and the working of railways in each island had been reduced under distinct heads, was the forerunner of some deep and sinister design on the part of some person or persons, and that it was studiously intended to lead up to the political separation of the two islands. He need scarcely say that such a surmise was absolutely without foundation. One of those charges at least had been the result of careful enquiry by a committee of the House, and, so far as he was concerned, both had been made solely and simply with a view to a more efficient and economical administration, altogether irrespective of the political opinions which he had long held, and which he still held, as to what would have been the best and most suitable form of Government ,for New Zealand. He would even go further and say that, in his opinion, it would have been well for the colony to have had two Ministers for Public Works, one for each island, both being members of the Cabinet, with seats in, and responsible to, the House. He ventured to think that had such been the case there would have been much more to show for their money than there now was. There must be incurred an expenditure to complete the portion of railways already authorised of £958,000 to complete 425 miles in the North Island, and £1,087,000 to complete 874 miles in the Middle Island. Out of a total expenditure of £2,045,000 required for this purpose, it is proposed to spend this year £1,176,500. THE FUTUBB NOBTH ISLAND RAILWAYS. It iB proposed to fill up the gaps in the North Island system as follows:—Wellington to Foxton via Waikanae, 61 miles; Waitotara river to uppar Patea crossing, 51 miles; Te Awamutu (Waikato) to Inglewood (Taranaki), 125 miles. This will complete an unbroken line from Wellington to Auckland of 476 miles. Masterton to Woodville, 50 miles; Woodville to Papatu, 50 miles; thus establishing unbroken railway communication from Wellington to Napier by a line of 220 miles. Waikato to the Thames, 30 miles ; branch line from Hamilton, 2', miles; Helensville to Kaukapakapa River, 2i miles. Except as regards the line from Waikato to the Thames, there was no actual surveys, and tho following coat is estimated on the basis of a mileage rate: Wellington to Foxton £440,000 Waitotara River to Upper Patea Crossing 357,000 Te Awamutu to Inglewood ... 1,115,000 Maßterton to Papatu, via Woodville 630,000 Waikato to the Thames 168,000 Branch line to Hamilton 10,000 Helensville to Kaukapakapa River 25,000 Wangarei to Kainio, 7i miles ... 30,000 Total £2,775,000 Or a total, including the amount required to complete the [lines already authorised, of £3,733,000. The construction of the line through the Waikato country, estimated, as I have said, to cost £1,115,000, will, it is hoped, be fully warranted by tho acquisition of considerable areas of land suitable for settlement. I understand that the line will run through some of the finest land in New Zealand, and from what has passed between the Hon. the Premier, the Hon. the Native Minister, and the natives concerned, there is good reason to hope that the acquisition of the necessary land will be successfully negotiated. If those natives have a just conception of the vast revenue which will accrue to them after parting with sufficient land whereby to construct this railway, they will not hesitate for a moment to enter heartily into a transaction which is bound to increase the value of the land which will be left to them very manifold. Moreover, they may earn a large amount of money by devoting their labour to the construction of the line; and there is good reason to believe that large numbers of them will gladly accept the useful employment which the construction of this line will afford. The construction of the Wellington-Foxton line will to some extent be contingent upon the acquisition of land from the Native owners. In addition to an area of 300,000 acres of Maori land, 180,000 acres of which have been under negociation for some time, tho line will render available for settlement 100,000 acres now in the hands of tho Crown ; and there can be no doubt that, taken together, these lands will ultimately realise an amount which will go far towards covering the cost of the propoaed railwa-s. I know there may be considerable difference of opinion among hon. members with regard to this line ; but I think that, apart from any advantages it may of itself yield, by enabling the country between Wellington and Foxton to be beneficially occupied, it is extremely desirable that it should be made as part of the main trunk line which is to connect Wellington with Auckland. If the two great centres, Wellington and Auckland, are to be efficiently connected by railway, this Wellington to Foxton portion must be constructed at some time. I believe it to be well that we should accept the conclusion that that connection has to be made, and, if so, I think the Parliament and the people will agree with mo that the sooner it is done the better it will be for the country. It will be seen from one of the appendices to this statement that during the recess the question of the best route from Wellington to Foxton has occupied the attention of the Public Works Department; and of this hon. gentlemen may rest assured, that, assuming the Government should be enabled to undertake tho work, it will not be commenced until there has been a further and a most thorough investigation as to the best route to be adopted. It will thus be seen that our proposals embrace one main line of communication on the West Coast, from Wellington to Auckland and the Thames, and another on the East Coast—Wellington to Napier. To make the system complete, it remains but to establish a connection between these two main lines by means of a short link of twelve miles between Bunnythorpe and Woodville. This would place Napier and nearly all the East Coast country in communication, not merely with Wanganui, but New Plymouth and Auckland. The probable cost of this link would be £119,000, and there can be little doubt that sooner or lator this work will be undertaken. As regards tho north of Auckland, it will be seen by these proposals that, if the Kaukapakapa station can be advantageously selected, railway communication for a distance of 50 miles will connect that city with the great Kaipara estuary at a point ao

cessible to vessels of ordinary tonnage, the short line from Wangarei toKamio, opening up, as it will do, the important mineral and agricultural resources of that district, will come in as a portion of the Main North line, which will, when completed, connect Auckland with the Bay of Islands. MIDDLE ISLAND BAILWAYS. Now as to the Middle Island. The works we propose for the future are— Otago Central, Dunedin to Albertown, Lake Wanaka, 160 miles, £1,100,000. Amberley to Brunnerton, 110 miles, £950,000. Greymouth to Hokitika, 2(5 miles, £220,000. Oxford to Temuka, 85 miles, £380,000. South Ashburton to Ashburton Forks, 20 miles, £55,000. Albury Extension, 20 miles, £IIO,OOO. Tapanui extension to Heriot Burn, 10 miles, £40,000. Fortrose to Edendale, 26 miles, £IIO,OOO. Otautau to Nightcaps, 16 miles, £75,000. Clutha to Oi'lin's River, 18 miles, £95,000. Waimea to Switzer's, 15 miles, £70,000. Lumßden to Marrow, 35 miles, £IBO,OOO. Shng Valley Brancli line, 9 miles, £35,000. Tapanui to Heriot Burn, 101 miles, £40,000. Waireka branch to Livingston, 16 miles, £105,000. Making a total length of proposed railways for the Middle Island of 576 i miles, at a total cost of £3,565,000. Adding ta this an amount of £1,087,000, which is the estimated cost of completing and putting into working order the lines alrendy authorised and opened for traffic in the Middle Island, we shall have a total of £4,652,000 for that island. As regards the Otago Central, hon. members will recollect that this House last session, both by resolution and by Act, affirmed that 100 miles of this line, through Strath-Taiori to Clyde, should be proceeded with, and the House also passed a resolution, in compliance with which 396,000 acres of Crown lands have been reserved from sale with the view of devoting the proceeds when they are sold to the construction of this portion of the lino, it is now proposed to extend the line from Clyde to Lake Wanaka, a distance of 60 miles, for some 50 miles of which the country is as level as a bowling green, the whole of it being in the hands of the Crown, and available for settlement. My belief is that no other of the lines now proposed will promote settlement and increase the productive powers of the colony to the same extent as the Otago central, and I venture to predict that many years will not pass without this line being extended to Hokitika, via the Haast Pass. The length of that extension from Albert Town, the now contemplated termination of the line, ia only 190 miles, and the highest point of the range to be crossed is only 1700 ft. as against 3000 ft. in the next line we propose to undertake, that namely from Amberley to Brunnerton, a distance of 110 miles. Although it does not appear that this Amberley and Brunnerton lino in proportion to its length and cost of construction, will open up a very large extent of country suitable for settlement, yet the area of such land that will bo opened up is by no means inconsiderable, and the proceeds of its sale will go far towards defraying the cost of the work. There can be no room for doubt that the traffic between the East and the West Coasts will, by this line, be developed enormously. It is estimated that even now, were the lino at work, there would be at least 10,000 tons of coal alone brought across weekly. And if, as I believe, this coal, which is quite equal to the best Newcastle, can be put into ships' holds at Lyttelton for Bomewhere about £1 a ton, it is difficult to place any other limit than that of the carrying capacity of the line upon the traffic which would be developed. There is also an almost unlimited quantity of timber, which would find its way to market by this railway. Hon. members will gather from the engineer's report that much careful exploration will be required before the exact route can be determined. From Brunnerton to Greymouth, as members are aware, there is now a railway in operation, and we propose to continue it to Hokitika, a distance of 26 miles. In accordance with a resolution of this House last session, a reserve of land was made in the Aorore Valley, in the Nelson district, with a view of the proceeds being applied to railway construction. A flying survey of the proposed line is now being completed. The Government is, however, of opinion that before any expenditure in this direction is incurred, it is desirable that therivers should be bridged and the district rendered accessible by road, for which purpose £4700 has been placed on the estimates. It will bo recollected that last session the House, on the motion of the hon. member for Akaroa (Mr Montgomery), directed that surveys Bhould be made and estimates prepared for a number of branch railways as feeders to the main line. Those plans have been made and the estimates are ready, but it has been suggested that the general interests of settlement would be better served and the resources of Canterbury be developed to a much greater extent if, instead of those branches, be obtained authority to construct an interior main line of about 85 miles in length, by means of which a very lnrge area of available country would bo opened up, and made productive. I now submit proposals for the interior main line, Oxford to Temuka accordingly. The South Ashburton to Ashburton Forks, and the Albury extension lines will facilitate the beneficial occupation of upwards of 200,000 acres of land, which must add largely to the exports of Canterbury, and to the revenue of the main line. Of this land 30,000 acres are in the hands of the Crown. Some hon. members may bo disposed to think that, having regard to the length of the railways which Canterbury already possesses she is allowed an undue share in our proposals, but slight reflection will show that such an objection cannot be fairly sustained. When we consider the large amount which the coffers of the colony have derived from the land revenue of Canterbury, and the amount which it is hoped will, for some time to come, continue to be derived from the same source, I maintain that the district is entitled to even more than is now proposed. We are, in fact, only intending to confer upon the people of Canterbury the benefits derivable from applying to a colonial purpose their own money; only proposing to expend a portion of the land revenue for the benefit of those settled upon the land from which that revenue has been derived, by devoting it to the purposes to which not only is it legit i mately applicable, but for which it ought always to have been held sacred. The same remarks will apply to tho other railways which are to depend for their construction upon the proceeds of the sale of lands to be rendered valuable by them. A very important line in Canterbury, which is not included in the present proposals, iB the Akaroa and Lake Ellesmere line. The Government hope that the Trust, whose powers will be prolonged and extended by the Bill which has recently passed a branch of the Legislature, may be the means whereby this work may be proceeded with. If, however, it should be found that the Trust is unable to do so, the Government will at a future time be disposed to deal with the matter specially, with a view to this most important undertaking being pushed forward. As regards the branch lino, Waipihi to Horiot Burn, it will be recollected that last session the House decided that this branch should he constructed as far as Tapanui. It voted no money for tho work, but resolved that it should be paid for out of land to be set aside for the purpose. I am pleased to say that this branch is now under way, and that no money will be required until after completion, the terms of the contract being that payment is to be made in cash in three equal instalments at two, four, and six months after the line is completed. The amount is £61,500, and the time for completion twenty two months from date of contract. So that we shall rave two years and upwards in which to realise upon the 40,000 actes of land reserved. The probability is that this land, owing to the construction of tho railway will realise from £1 to £3 and upwards an acre, and will thus yield double the amount of the contr ict. I may add that there were five tenders f jr the work on the above terms, and the onaccepted, being the lowest, was £2OOO under the engineer's estimate, Ibis

fact is worth any number of arguments to show how we might to a great extent construct our railways without increasing the amount of our public debt, or adding to tho annual burden in respect thereof. It is now proposed to extend the line ten miles further. By so doing the growth of cereals will bo very largely increased, and one of the most produotive districts in the colony fully developed. I have heard it objected that now, when tho land fund has been colonialised, it is unfair to tho colony as a whole to alienate largo portions of its' landed estate for local purposes. To me such an objection seems, if I may be permitted so to say, simply absurd. We are not alienating landed estate. We are changing the form of parts of it, and thereby greatly increasing the value of the whole. If portions of land go, eo far as the colony is concerned, the railways constructed out of the oroceeds remain, and if wo manage our affairs wisely, we shall derive a much larger income from those railways than wo ever did or ever could derive from those portions of land. We do not proposo to deal exceptionally with the proceeds of land set apart for the construction of railways. Those proceeds will be dealt with as ordinary revenue, while, from the enhanced value of the lands to be affected by the lines so constructed, wo may fairly assume it as a fact that the ordinary revenue will year by year be greatly increased. SUMMAEY OF PROPOSALS AS TO THE PUBLIC WOBKS FUND. Summing up the proposals I have had the honor to submit, they will be found to involve an expenditure for railways in the North Island of £3,733,000, and in the Middle Island of £4,652,000, altogether £8,385,000. As I have already observed, the estimates under which these figures have been arrived at are to a certain extent approximate. My belief is that they are more over tho mark than under, and that with judicious and careful administration, unless circumstances alter very much within the next few years, it will bo found that a much less sum will suffice. We propose that the expenditure shall be extended over five years, which is in my opinion the shortest period within which we could carry out works to fhis extent, unless we are prepared for tho importation of labor to a greater extent than can bo readily absorbed in the permanent settlement of the country. Our object will be so to regulate the administration of tho waste lands of tho Crown as to afford every inducement and facility to men who labour in the construction of the railways to invest their earnings in land. By laying off allotments for sale along the various lines as they progress, I am disposed to think that much may be done in this direction, and that a fair proportion of the money expended on public works may find its way back to the Treasury. Out of the loan authorised last session there remained on the 30th June available for public works about £2,000,000. If we add to the public works fund from ordinary revenue during the next five years say £3,500,000, the amount just stated as available will be increased to £5,500,000, and there will remain about £3,300,000,t0 be raised by further loans in order to meet the estimated cost of the whole of our proposals. It may perhaps be asked—is not £3,500,000 too large a sum to expect to be spared from the revenue? Is the revenue likely to be in a position to meet such a demand ? In order that hoa. members may be enabled to form an opinion as to this, I shall enumerate the different areas of Crown lands the value of which will be specially affected by the proposed railways, and the sale of which may be said to be contingent upon those lines being constructed. In the Middle Island—the Otago Central to Albertown will pass almost entirely through Crown land, and open up the most valuable public estate in the colony. It will affect an area of 2,250,000 acres, all in the hands of the Crown. The Amberley to Brunnerton line will pass through nearly 300,000 acres of freehold, and render available 400,000 acres of Crown land. The Greymouth to Hokitika line will affect 85,000 acres of forest land belonging to tho Crown. The Canterbury subsidiary main line will pass chiefly through freehold land, but as it cuts across all the vallies at the baße of the hill country, its construction will bo of considerable value to the settlement of those valleys, and render more accessible an area of Crown land of 560,000 acres. The South Ashburton to Ashburton Forks and Albury Extension will enhance the value of 300,000 acres. Fortrose to Edendale —A preliminary survey of this line has been made in terms of a resolution of the House last session, and land has been reserved for its construction in accordance with the same resolution. It will promote the profitable occupation of 120,000 acres of land, 40,000 of which are in the hands of the Crown. Otatau to N : ghtcaps—This is an extension of the inland line from Riverton. It will render available a very valuable coalfield and promote the cultivation of over 50,000 acres of fino agricultural land, 10,000 of which is in the hands of tho Crown. Clutha to Catlin's River is the commencement of a lino which passes through a district containing 60,000 acres of fine agricultural freehold land. It will lead to the occupation of a territory which contains 60,000 acres of Crown land, chiefly forest. The Waimea to Switzer's line opens up 200,000 acres of fertile land, much of which is ready for the plough, and all in the hands of the Crown. The Lumsden to Marroa line opcrs up 200,000 acres of Crown land of the finest quality, a great portion of which will, I believe, be occupied and cultivated very shortly after it is rendered accessible by rail. Shag Valley branch is a line which was intended to have been made by the Provincial Government of Otago. Surveys and working plans were prepared, and public tenders applied for. It commands a rich agricultural and pastoral district of 45,000 acres, of which 10,000 acres belong to the Crown, and will be one of the best paying feeders to the main line between Dunedin and Oamaru. It will moreover greatly facilitate access to the important goldmining and rapidly increasing agricultural districts of Mcßae's and Hyde. It will thus be seen that an area of nearly 400,000 acres of Crown land in the Middle Island will bo affected by the proposed lines. Much of this land, if accessible by rail and in the market now, would realise £5 an acre and upwards. Probably we shall not be beyond the mark in estimating that it will realise to the State at a moderate competition little short of the whole estimated coat of the railways, viz., £4,650,000, now proposed to be made in the Middle Island. As regards Crown land in the North Island, I have first of all to direct the attention of hon. members to tho fact that about 120,000 acres of the best land on the West Coast portion of the confiscated territory is now being surveyed for sale. I do not wish to raise the expectations of hon members unduly ; but I believe that I am warranted in reckoning that from this quarter alone (irrespective of tho largo area of land already acquired, and under negotiation in the same locality) wc may expect to receive a not revenue of three-quarters of a million Bterling. In addition to these are very large areas of land in the Thames and Piako districts, which will at once acquire a greatly increased value, from the prospect of railway communication being likely to be opened between Grahamstown and Waikato. Other large blocks of land in the Bay of Plenty, Poverty Bay, and Wellington districts, will shortly be available and we shall have the gratification of beholding ihe North Island for the first time for many years yielding a substantial Inn! revenue. For more particular information ::s to area, locality, and probable value of our North Island land estate, I would refer hon. members to the usual statement on Native hnds, which will shortly be made by my colleague the Native Minister. In reference to such of those lands as are situated upon the West Coast of this island, forming part of our confiscated territory, I have a proposal to make to the House which, while it may appear to be n considerable modification, it' not a reversal of tho financial arrangements of last session, is really a means of giving practical efftct to those arrangements. Those lands have been acquired at i n expense of blood and treasure, and which, in our opinion, justify exceptional treatment in

appropriating the proceeds. In addition to the 25 per cent, payable to the Now Plymouth Harbor Board, the county in which they are situate, in accordance with the legislation of last session, would receive 20 per cent, of the amount realised from the sale, while the colony, which had already paid so heavily for the land, would he called upon to provide the means of constructing the main line of railway. We propose then to apply 15 per cent, of the 20 per cent otherwise payable to the county, to tho construction of the railway through the district. An the land will shortly be in the market there will bo a considerable sum at no distant date specially available for this work, which can be commenced immediately. The county will in this way receive the wholo of the 20" per cent., while the colony will be assisted in a work -which will contribute so materially to enhance the value of property in the district and to increase the financial resources of the colony. Assuming theso proposals to be approved by the Legislature, it becomes an important question what is to bo our procedure with regard to the works not already sanctioned ? The House will, of course, recognise tho impossibility of coming to any conclusion on such a matter which can be satisfactory to all. Each district in the colony believes that its claim to be provided with railways at the cost of the State ranks at least as high as the claim of any other district, and none probably will admit that any such claim ought to be met before its own. This, in truth, is a great difficulty, which the House, by its past legislation, has brought upon itself. That difficulty commenced from the moment when the Legislature repealed that cardinal condition of tho public works policy, that in tho event of the proceeds of any railway failing to meet interest and sinking fund on the cist of its construction, property in fche district should be rated to make up the deficiency. The difficulty is one which, I confess, I cannot solve. As things stand, the Government are desirous to distribute to tho best advantage whatever funds may bo available for the construction of public works, and to do this as fairly as possible under the circumstance s, we shall endeavor to carry on as nearly as may bo simultaneously the various works that may be authorised, and to apportion the expenditure each year in such directions as shall seem most likely to promote tho speedy settlement and beneficial occupation of the waste lands of the country. Much of the difficulty of tho situation arises from the fact that here in New Zealand wo are expected to do in a few years what it has hitherto taken centuries elsewhere to accomplish. A few hundred thousands of people are bent upon doing in a lifetime that which in the past has been the work of millions of men during generations. If New Zealand goes onward as she is now doing, until she reaches her first century, it is hard to decide which will then bo the "greater," which the " lesser" Britain. It is the remarkable progress we have made which renders us so impatient with regard to our future progress, and this impatience is for us an evil against the possible effects of which we must jealously guard. I need scarcely say that there are lines of railway in each island, besides those embodied in my proposals, the importance of which are fully recognised by the Government, and which we should have been glad to have included. This present proposal involves an expenditure of £1,677,000 a year until the lines mentioned are completed, and if we can come to an arrangement as between ourselves —an honorable understanding which ought to be held as binding as the laws of the Medes and Persians—that upon the completion of those lines a similar amount shall continue to be expended on productive railways only, it is a mere question of time when all the land throughout the colony which it is required to occupy and render available by means of railway communication, shall be so rendered available. By the time that the railways now proposed are complete, we shall no doubt find that many branch lines will be undertaken by private enterprise. There are at present throughout the colony nearly 100 miles which are {being taken in hand under the provisions of the District Railways Act of last session ; and it is believed, by slightly amending that Act, advantage will be taken of its provisions to a much larger extent, and the Government will thereby bo relieved of constructing many lines which sooner or later must otherwise devolve upon it. I look upon this as one of the most gratifying features in the future railway policy of New Zealand. LOCAL "WOBKS. I must now solicit tho earnest attention of hon. members to a question which may virtually affect the whole scope of the future policy of tho colony, and which, in my belief, may largely influence the functions and the character of this House. I refer to the question of roads and bridges. Although the gradual extension of the railway system is diminishing the extent to which money must needs be expended in such work, as compared with what was unavoidable in the past, there are still many districts in which such works will continue to be for years to come essential. I need not remind you that one of the great advantages which was to bo secured by the recent political changes, was that the name of a road or bridge was never more to bo heard in this House as connected with any askings for money. Such, we were asked to beheve, was to be one of the first results of the abolition of the provinces. As it is, however, unless the House is prepared to make a decided stand, it is to bo feared that roads, bridges, and culverts will become subjects of the most anxious and excited discussions to be heard within these walls. What then is to bo our policy with respect to these works? My colleagues and myself are clearly of opinion that they ought to be wholly devolved upon local bodies, by whom the requisite funds must be found. One thing seems to me to beyond doubt or question —the colony must undertake all such works or must refuse to undertake any. Any other course must bo brimful of injustice. Last session we passed various votes for roads and bridges, with the understanding that the amounts were to be provided out of loan. Those votes will, T apprehend, have to bo made good iu any case. Many of them are now in course of expenditure, and we propose to renew all the unexpended portions by putting them upon this year's estimates. This will, in round numbers, mean tho appropriation of about £102,000 for local works in the North Island, and about £1(56,000 for similar works in the Middle Island. Thereafter we propose to finally close tho accounts, and to confine public works operations entirely to railway construction. I admit that, if we are sustained in this course, it will be productive of hardship to those portions of the colony which were not fortunate enough to participate in the scramble for roads and bridges last year. It seems to me, however, as I have said, that in fairnes3 wo have no middle course open. If we are to construct arterial roads and bridges, we must take charge of all such works and subsidies in aid of them, which aro now paid to local bodies, must ceaee. It is manifestly unreasonable to expect that the colony can go on paying, as it did last year, nearly three quarters of a million to local bodies, if it has to perform the functions which devolve upon such bodies besides. One way out of tho difficulty, perhaps, would be to increase tho borrowing powers of local bodies. To this, however, many objections may be urged. Some people are of opinion that the colony should raise the money and leave the local bodies to expend it. But here again we should trample under foot a fundamental principle on which the new order of things was so recently based, namely, that no money shall be raised by tho colony, the expenditure of which is not to bo placed directly under the control of the House. For my own part, I have never believed that that principle ought to bo rigidly and unreasoningly observed j but it was one of the cardinal points of abolitionism, and I presume it will be adhered to by the presant Parliament. Altogether, I confess that this is one of the most ditlicull problems which we are now e died upon to solve, and there can, in my opinion, only be one out of the two fair solutions. Either the colony should close its bowels of compassion in respect of every ap-

plication for roads and bridges, however, exceptional may be the claim (and they are all exceptional in tlie opinion of the claimants), or it should distribute its gifts to all upon some equitable basis. As it is, unless we go into the money market, there will bo nothing to distribute over and above the subsidies already fixed. There remains therefore only the one solution, of every locality relying upon itself. I need scarcely say that, under all the circumstances of the case, we have been reluctantly compelled to turn a deaf ear to numerous and pressing applications for local works throughout the colony I omitted to observe that the two amounts above referred to are irrespective of a sum of £225,000, which is required to meet provincial liabilities, and £35,000 for roads in native districts. It will be recollected that last session a Bill was introduced intituled the Settlements Works Advances Bill, the object of which was to enable the Government to open up lands for settlement before they were put up for sale. In many localities Crown lands are comparatively inaccessible and unless they are to some extent opened up by roads, they are likely to remain unoccupied or be sold below their value to speculators. This Bill, however, did not becstne law, as the Government did not specify the precise localities in which the proposed expenditure was to be applied. We intend to ask a vote of £58,590 for this object, full particulars of the proposed expenditure of which will appear in the Public Works Estimates. It is estimated that this amount will, at the average of 2s lOd per acre, enable upwards of 414,000 acres in various districts throughout the colony to be brought into the market under conditions which will largely enhance its value. PUBLIC BUII/DINGS. It will be seen from the public works estimates that a considerable sum of money is required for expenditure on various public buildings throughout the colony. Among those to which I may specially refer is the Lunatic Asylum at Dunedin, which is too small for the number of inmates, aud which it is proposed to remove to a more euitable locality, being an extensive reserve of 900 acres of Government land, the cultivation of which on the part of the patients will, it is hoped, render the institution self-supporting, thereby relieving the State of a large annual burden which must otherwise continue to devolve upon it. It is proposed in the new establishment to make suitable provision for the care of inebriates, to enable which class of patients to bo dealt with, some special legislation will be necessary. It is also intended to erect upon the same reserve adequate separate buildings for the Ofcago Reformatory and Industrial School for Boys and Girls. The cost of the latter will be more than recouped by selling the property upon which the school at present Btunds. While on this subject, it may not be deemed out of place to notice that the hulk in Wellington harbor, belonging to the Public Works department, being no longer required, we propose to have her fitted up as a training school and a reformatory, into which boys convicted of criminal offences may be drafted from all parts of the colony, instead of their being associated with hardened criminals in the common gaols, or mixed with those whoso only crime is that they have been left destitute and neglected. CONCLUSION. Much as the public works and immigration policy has conduced to the prosperity of New Zealand, there can be no question that, if it is followed up as is now proposed, the future results will very largely exceed those of the past. We know the extent to which railways have helped us to increase our settled population, our agriculture, and our trade, and we know that for some of these railways we have paid very dearly, not alone in money, but in experience. Whatever it has cost us, should at least have taught us in what directions, and in what manner we can best spend the money hereafter available for such undertakings. Not only ought we resolutely to resolve that we will never again sanction the commencement of a railway as to which we have not at least reasonable evidence that it will pay; but we should equally resolve that, as one point of our experience, ten shillings shall be made to represent as much work as twenty shillings have unfortunately in too many cases represented heretofore. Wo now see clearly many things after which we could only blindly grope when we began to construct our railways. We have many appliances that were then wholly wanting, and we have in our midst responsible and capable contractors for whom at the outset we had to go far a-field. In addition the prices of materials are greatly reduced ; indeed, upon rails alone, the reduction is so great, that, could it be afforded at once to purchase all we shall want for our contemplated lines, we should save probably £600,000 as compared with the prices we have as a rule had to pay. Advantage has been to a limited extent taken of the low state of the market by ordering 10,000 tons of steel rails at £5 14a, delivered at Cardiff. In expressing these opinions, I desire to disclaim casting any reflection upon those who have hitherto had the professional overcharge of our public works. If there have been blunders, they have been chiefly incidental to circumstances and to the nature of things. In my belief they have been more political than professional. I do not think I need occupy the time of the House further. Appended to the statement are tables and reports, all of which embody much valuable information, and will no doubt be found both useful ant 1 instructive. I conclude, sir, by once more commending to the approval of hon. members the proposals I have had the honour to submit. I have had pleasure too in submitting them, for in my belief they are calculated to meet the requirements of settlement over a great portion of each island. To give effect to them will, I am convinced, be to increase enormously the productive power of the colony, and to do that the constantly growing tendency of which must be to lighten the public burdei s. Under these proposals our industrial population ought to be at least doubled during the next few years, and the great proportion of the incomers ought to bo, and may bo, so located that, while laboring lovingly to oubduo the earth until that which is barren yields its kindly and matured fruits, they may labor stubbornly, because they are creating homes for their children, and proudly because their nimes figure on no man's rent roll. It is in such a spirit that most of us have struggled to create a great nation in this favored land. Such was the spirit in which wo strove through the day of small things, and now, when our vision is clearer, as to what we may do and become, and when our grasp is firmer upon all that wo undertake, I confess that I am jealous to have some share with those of whom it shall hereafter bo said that they had influence in promoting .he prosperity and greatness of New Zealand. STATEMENT BY THE MINISTER OF LANDS. The Hon. Mr Stout said—With permission of the House I have, as Minister of Lands, to make a short statement. In consequence of the various projected lines of railway through the waste lands of the Crown, the Government have thought it necessary to advise His Excellency to withdraw from sale lands near those projected lines. This will prevent speculators taking up such lands in the hope of reaping large profits from the increased value that will be given to the lands through the proximity of the railways. This withdrawal has been principally made in the land district of Canterbury, and the Waste Lands Board of that district, will have to consider whether advantage should not be taken of the provisions of section 49 of the Land Act, by which lands increased in value by railways may bo set apart and disposed of as special value land.