8.-6.

MINING. With respect to the mining industry the outlook is of a very hopeful character. The export of gold for 1905 was the highest for a period of thirtyfour years, and during the first six months of the present year the export showed a substantial increase compared with the first six months of 1905. The industrial life of a people is, to some extent, indicated by its coal output; that mineral shows an increase for the year 1905 over that of 1904, which was the highest on record. It is intended to give additional assistance and special facilities in order to enable prospecting for gold to be carried out more generally. There must be other mineral deposits awaiting discovery in this country, and money spent in this direction should be regarded in the same way as that expended for pioneering, either in the commercial or any other branch of the industrial world. There has been an increase in the output from the two State coahmines, and the financial aspect is equally satisfactory. The briquette plant for the utilisation of small coal is now in course of erection, and should shortly be in operation. Coal depots, for the sale of coal direct from the mines to the consumer, have been opened at Wellington and Christchurch, and arrangements are in contemplation for opening depots at other large centres throughout the colony. ENDOWMENTS FOR EDUCATION, OLD-AGE PENSIONS, AND HOSPITAL AND CHARITABLE INSTITUTIONS. The Government is strongly of opinion that, in the interests of these important matters, a specific fund should be ear-marked for them, instead of leaving them to be wholly provided for out of the ordinary appropriations. For this purpose we propose to make a beginning by setting aside as an endowment all the ordinary Crown lands now unsold or unleased. The net proceeds hereafter derived from them will be paid into an Endowment Fund, within the Public Account. The fund will be available solely for purposes of education, old-age pensions, and hospital and charitable institutions, and, of course, will only be drawn upon pursuant to appropriations by Parliament. Until it becomes selfsupporting it will be supplemented by the ordinary appropriations, or be available in aid of them. It is confidently anticipated that with the expansion of the colony the fund will grow, until in time it will suffice to meet all the charges. In the meantime it is the first step towards making specific provision for these important services without disturbing the ordinary finances. Legislation will be introduced to give effect to the proposal. REFORM OF THE LAND LAWS. The Government has given careful consideration to the important question of land tenure. On the one band, the country cannot prosper unless the settlers are prospering, and to that end they must hold their land in moderate areas and under liberal conditions. On the other hand, we of to-day are trustees for those who are to follow us, and we are not justified in recklessly sacrificing the public estate. The problem is how best to reconcile these apparently conflicting interests. The Government is of opinion that reform is necessary on lines which I will briefly indicate. Full details will be given in the Bill which my colleague the Minister for Lands will submit in order to give effect to our proposals. Honourable members will recollect that, as part of our scheme of land reform, all existing waste lands of the Crown are to be set aside as an endowment for education, old-age pensions, and hospitals. So far as relates to land-tenure the scheme extends to all Crown lands, and whilst sacredly preserving existing contracts, will in its main principles be as follows :— (a.) Sale of Crown lands to be discontinued, except in the cases specified below; (b.) The lease-in-perpetuity system (999 years) to be discontinued and a term of 66 years substituted, with valuation for improvements at end of term ;

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