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to enter upon the undertaking, and to provide a large proportion of the necessary funds on
terms which would be advantageous to the Province. I am of opinion that you will do
wisely to determine upon proceeding with the Railway with the funds which the Province
has already at its disposal, and that you may do this with a reasonable prospect of being
able to carry on the line to such a point as will largely promote the interests of the
Northern districts. I am further of opinion that if a system is adopted by which the work
will be divided by the Government into separate contracts, the country will obtain the
advantage of greater competition in the distribution of the work, which will thus be brought
within the reach of a large number of contractors, and the Government will have it within
its power to arrange for the performance of the work so as not to interfere with the
ordinary industries of the country.

In connection with this subject, I cannot let this our last meeting pass without
drawing your attention to two matters which may be regarded as corollaries upon the extension of our Railway system. The first is Immigration, and the second the enlargement of
our Wharfage Accommodation.

In regard to the first, the experience of the late harvest renders unnecessary any
argument to show that, unless more labour is introduced into the Province, the area of
cultivated ground will be contracted instead of enlarged, and our trade and commerce be
brought to a stand-still. I have it upon reliable information that the breadth of cultivated
ground, including English grasses, this year will be 218,680 acres, against 145,000 acres of
last year; and the estimated amount of grain this year is 3,276,458 bushels, as against
1,490,682 bushels of last year, being more than double last year’s produce.

To enable the producer of this article of export to compete with other grain-growing
countries, it will be necessary that he should have a reasonable certainty that he will be
able to obtain labour to gather in the results of his year’s toil, and that he will have
facilities of transport and shipment at a cost which will leave him a margin of profit.

I must therefore again press upon your consideration the necessity of making a
provision which shall extend over a period of years for the introduction of population into
the Province; nothing but stagnation can be the result of neglecting our duty in this
respect.

I believe that there is a very common feeling in favour of the General Government
undertaking this work. I will not here speculate as to the probability of the counsels of
the Colony issuing in any immediately satisfactory results in the promotion of Immigration—I trust they may. Under any circumstances I believe that the Colony will not
refuse to help those who have the means of selecting a good class of Immigrants to carry
on the colonisation which alone can enable it to struggle with the terrible incubus of debt
resulting from Native disturbances in the North Island.

I accordingly propose, with your consent, to ask the Colonial Government to borrow
for the Province a sum of £30,000, to be expended solely in Immigration over a period of
three years, the interest and sinking fund of the loan to be paid by the Province. Should
the Colonial Legislature assent to this proposal, and the moneys be judiciously spent, I feel
confident that the expenditure would react upon the Land Sales, and enable us to proceed
with the extension both of Wharfage and of internal communication.

Since the last Session I have heard from Mr. Selfe of his willingness to hand over
£3000 of the sinking fund of the Immigration Loan, and I have given directions for the
expenditure of the sum of £10,000 voted by you for the purposes of Immigration.

I trust that you will affirm the desirableness of maintaining a general immigration of
labour adapted to the wants of the Province, leaving it to the Executive to modify from
time to time the classes of Immigrants to suit the requirements of the Province.