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notwithstanding the difficulties attending the arrival of a large number in the depth of winter, they have hitherto been readily absorbed in the industries of the country.

I am of opinion that it would be unwise to repeat the introduction of any considerable number at that season of the year.

During the past year twenty-six immigrant ships have arrived at Lyttelton, conveying 10,098 immigrants for this province, of whom 1120 were nominated in the colony and joined their friends on arrival. Included in the above number are upwards of 1700 married men with families, a large proportion of whom are agricultural labourers from the Midland and Southern counties of England.

The whole of these immigrants, with very few exceptions, have been readily and naturally absorbed. New depôts have been built during the year at Waimate, Timaru, Ashburton, Southbridge, Akaroa, and Rangiora, and a depôt for the accommodation of convalescent patients from the quarantine station has been erected on Quail Island; 129 cottages have been erected, and placed under the control of the several Road Boards; besides several groups of sod huts in the southern part of the province.

I take this opportunity of expressing the satisfaction which it has given me to observe the generally suitable character of the immigrants who have arrived.

I have also to express the obligation under which I feel to Mr. Duncan, the agent who has represented the province during the past year in the selection of immigrants, and has cordially co-operated with the Agent-General for this purpose. His untiring energy and zeal has contributed largely to make the resources of the province known in the agricultural districts of the United Kingdom.

A valuable and interesting report from him will be laid before you.

The great influx of immigrants has at the same time made large demands upon the resources of the country for the support of hospitals and other public institutions, and for the maintenance of order. It has also in some instances made necessary an expenditure in excess of appropriation.

I shall ask you to renew liberal grants for these objects.

The necessity for increased expenditure for drainage and other sanitary purposes is pressing itself upon the attention of the governing bodies in the centres of population, and their requirements will no doubt be carefully considered by you.

The liberal provision made by you for education has produced most satisfactory results during the past year.

The number of children attending the district schools in the province during the quarter ending 30th September, 1873, was 7695, while the number attending during the quarter ending 30 September, 1874, was 10,136, showing an increase of 2441. You will be asked to make further liberal provision for the current year.

A Bill to amend the present Ordinance will be submitted to you, and will, I am sure, obtain the careful consideration which the importance of the subject demands.

The recent outbreak of scab from the sale of a number of sheep from a farm in the Northern district, points to the necessity for more stringent provisions for the suppression of the disease.

A Bill will be submitted to you for this purpose.

The last session of the General Assembly of the colony is remarkable for resolutions which were passed by one branch of the Legislature affirming that the Provincial form of Government in the North Island should be abolished; and that in the measure giving effect to this proposal there should also be included a provision declaring Wellington to be the seat of Government of the colony, and for continuing the localisation of the land revenue in accordance with what is known as the compact of 1856.

The Colonial Executive was directed to consider during the recess how best to give effect to these resolutions.