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in any case, that the expenditure out of the Public Works Fund should proceed beyond 1889-90, as my colleague the Minister of Lands hopes that by that time he will have sufficient revenue in the shape of land fund to cover works of this character which may require to be done. Village Settlements. —For village settlements the expenditure during the year ending 1886-87, on the basis of the vote of £5,000 then granted for this class of undertakings, was £1,891, and it has been found necessary to make further provision to the extent of £72,200 to cover the expenditure of £4,032 between March and September last, and the liabilities of £68,118 existing at the end of September —total, £72,150, or, in round numbers, £72,200. Under this allocation it was anticipated that the expenditure would be £23,000 this year, and £20,000, £20,000, and £9,200 respectively for the three following years ; but the Government has since been given to understand that the liabilities, as stated at end of September, may possibly not all accrue, and that consequently something less than the £72,200 may eventually be found to be sufficient, and, if this is so, the balance thus saved will be made available for further works in the shape of roads to open up lands before sale. EOADS ON GOLDFIELDS. Coming now to the last of our very numerous classes of roads, between some of which, I may say, the line of demarcation is so very slight that they are rather apt to overlap, I find that on account of roads on the goldfields the expenditure for the four years ending March, 1887, has been, in round numbers, £27,000, £15,000, £32,000, and £32,000 respectively, while for the present and two following years the amounts proposed to be provided are £31,000, £30,000, and £10,760 respectively. The amount thus allocated for next year is large, but most of it will be required to meet existing engagements. WATEEWOEKS ON GOLDFIELDS. On account of waterworks on the goldfields the expenditure during the last four years has been, respectively, in round numbers, £16,000, £8,000, £9,000, and £7,000, while for this year and next year the expenditure proposed is only £1,200 and £800 respectively, the intention being merely to complete certain works which are in hand, as it is considered that works of this character can be more satisfactorily carried out by private enterprise. PUECHASE OF NATIVE LANDS, NOETH ISLAND. On the purchase of Native lands in the North Island (exclusive of land along the North Island Main Trunk Eailway) the expenditure during the last four years has been, in round numbers, respectively £24,000, £70,000, £34,000, and £18,000. For this year the expenditure required to meet engagements will amount to about £12,000 ; but, as £11,000 will come to the credit of the vote from the fund provided for land purchase along the North Island Main Trunk Eailway,- the actual charge this year will amount to only about £1,000; and for the next two years the expenditure is proposed to be £10,000 and £5,000 respectively. The total allocation proposed for this purpose is thus £16,000. The amount of land in respect of which transactions were completed under this heading, and which has consequently become the property of the Crown, for the period from 31st March, 1886, to 30th September last, was 207,000 acres, and the area of land in respect of which negotiations are still pending, and upon which more or less payments have been made, is about 575,000 acres. IMMIGEATION. As regards the important question of immigration, I find that for the period between the Ist May, 1886, and the 30th November, 1887, 1,460 nominated immigrants have arrived in the colony, towards the cost of whose passages the sum of £12,162 15s. has been contributed by their friends in the colony,

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