have been reserved, but no further steps taken to render them the property of the province and a source of emolument. I have to inform you, however, that the grants are now being made out and will shortly be forwarded to Auckland.

The Blenheim Improvement Bill, and Picton Institute Bill, and Institute Loan Bills are merely local acts much required in their several localities, and will not occupy your time and attention very long.

The Provincial Loan Bill is to provide for a most important and necessary want; it is to supply the want of gaol accommodation, which is such as to render absolutely necessary some more adequate provision for the accommodation of prisoners; and, feeling that the present state of funds in the provincial treasury will hardly admit of your appropriating a sufficient sum to that purpose, I have thought the best course to pursue would be to raise the sum required by way of loan, to be repaid in the course of a limited term of years. The building now used as a gaol can be most usefully applied to the purposes of a lock-up, police barracks, and stables, for which a vote has been placed on the last Appropriation Bill, and the frontage of the present reserve on which the gaol now stands can be very advantageously leased in small sections.

The Waterman’s Licensing Ordinance is a measure which need not occupy your attention long, but it is wanted and will be useful, and it is probable that the influx of people during the ensuing summer may render some provision under this head very necessary.

On the question of the Education Bill I may venture to state that it must be apparent to any person who is cognizant of, or looks into the working of the present Act, that the result is anything but satisfactory, and I need scarcely, I feel assured, urge upon you the advisability of substituting as speedily as possible a better calculated to meet the requirements. I feel that it may be urged that an ordinance of so much importance should have been placed in the hands of members at an earlier date, at the same time I must state that in justification for the seeming haste in which this has been brought forward, that it was not my intention originally to have introduced one this session, but rather to have one printed and circulated amongst members individually for some considerable time first, and then to bring it before you in council at a future session. So imperfect, however, seems to be the operation of the act now in force, that I am of opinion that it will be very injudicious to allow it to remain in force any longer than can be avoided. The present measure will therefore be laid before you, and though the members of the Government are not desirous of pushing it through its various stages with undue haste; but will leave it for the consideration and to the suggestion of amendments by other members, yet I must urge upon you the necessity of not allowing the present session to expire without entertaining the question.

I have now to submit to notice certain supplementary Estimates which will be required during the ensuing year. I have reduced them to the supplying of wants, most pressingly needed, and in most cases imperatively necessary, and during their consideration the members of government holding seats at this table will be pleased to explain the several items under consideration.

To meet these expenses the experience of the last three months shows that the revenue accruing from the gold fields’ themselves, and in immediate connection with them far exceeds that placed on the Schedule of the Estimates lately before you, and looking to the fact that the progress of the gold field has been undoubtedly retarded by the inclemency of a winter season, and that at the outset or first creation of the gold field it was impossible to, if I may so term it, farm the sources of revenue to the best advantage. I think we may reasonably expect a return in a far greater proportion during the ensuing nine months than it has yet yielded.

With respect to the question of railway communication, you will find on examining the correspondence laid before you, referring to the proposed loan for that purpose, that ministers have again refused to credit the proposed security, at the same time pointing out the difficult state of the money market; and it is in my opinion questionable whether they would sanction any Loan Bill to the extent required, even if additional security were offered. There appear to be but two courses open, the one to endeavour to get one of the large engineering firms to undertake the work under guarantee from the province, with re-payment with interest; the other, and at present, I think the best course is to wait the meeting of the General Government, when the question of finance will be largely entertained, and that of provincial loans placed upon a more satisfactory basis than at present. With reference to the balance in the hands of the Provincial Treasurer, available, although but small at present, I am happy to state that it is steadily recovering from the ebb to which it had been reduced some time back, in consequence of the drain upon it, caused by the employment of a quantity of labour in accordance with resolutions of a late Council. And as we may look to an influx of labour this summer, even larger than we have yet experienced, I must urge upon you to give this matter grave consideration, and to pass such resolutions as, by being circulated in neighbouring provinces, may warn intending immigrants that the Government will not undertake to find employment for all those who, being unsuccessful on the gold fields, may expect to be sustained by labour on provincial works. In which case, by careful expenditure, and a due regard for—and attention to the, now, more numerous sources of revenue, I feel sure that at a future session, I shall be able to hand you in a satisfactory report on the question of finance.

Let it be understood that, whilst I do not consider a very large balance in hand as of itself indicating a high state of prosperity, for monies may be allowed to accumulate through the neglect of necessary works, and so to the manifest injury of the province; yet neither should I wish nor do I intend, as far as lies in my power, that the provincial funds should become seriously involved. To borrow money for a specific purpose may be a necessary, nay even a wise course, but to run into debt through extravagance in general management is quite a different affair and very reprehensible.

The question of extended representation for the Province has been, I am aware, lately discussed out of doors, and was also brought under my notice by a deputation which waited upon me a short time back. I do not feel it to be incumbent upon me to enter into the particular merits of the question, but having brought it under your notice, I beg to leave the matter in your hands.

And now, gentlemen, by virtue of my authority as Superintendent of the Province I declare the Council open for despatch of business, and trusting you will give the various matters before you your earnest attention I now leave you to your deliberations.