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In the Land Department, since the resignation of the late Commissioner, the office has been managed by the Commissioner and one clerk only, receiving from the Provincial Government, the former £400 and the latter £150 per annum.

In the Native Interpreter's Department no monies have been paid since the 30th June last.

"Harbor Department."—Since the 1st of September, the boatmen have received at the rate of £120 instead of the £100 voted. The second Pilot's salary, voted at £250, was lowered to the sum of £175, from November 1st to January 31st, on account of his occupying a house belonging to the government, intended to be occupied by the coxswain.

"Sinking Fund on Provincial Loan."—The amount of £860 voted by the Council has been paid over to the following Trustees, viz., Messrs. O. Curtis, D. Rough, and W. C. Hodgson.

"Repayment of Education Loan."—The amount voted, £50, has been paid, leaving a balance of £1,450 still due to the Trustees of the Trust Funds.

"Education."—The full sum of £5,200 has been paid to the Central Board, together with the sum of £259 6s. 11d., accruing to the Board on account of Land Sales, and £100 0s. 3d. has been expended on the collection of the rate, making a total sum of £5,558 7s. 2d. The amount received for rate is £1,821 12s. 10d.

"Reading Rooms and Libraries to meet equivalent subscriptions."—The only payment under this head was made to the Treasurer of the Motueka Valley Reading Room of £35.

"Volunteers."—No salary or other expenditure has been made out of this vote since 30th September last.

"Surveys, &c. £1,500."—This vote has been exceeded by the sum of £1,010 11s. 5d. caused by the surveys required to be executed at the West Coast. Mr. Burnett's salary, at the rate of £400 per annum, has been paid out of this vote since the 1st of October last; previous to which time it was placed to the account of Coal Works. Mr. Foster and Mr. Woolley's salaries have been charged to this account, both at the rate of £250 per annum. In all cases without field allowance or extras.

Coal Works, £1,600."—Out of this amount has been expended the sum of £1,092 9s. 2d., £390 of which was paid to the Pakawau Coal Company. The balance was disbursed on works at the West Coast. All expenditure ceased on the 21st of October last.

"Main Trunk Road, £500."—This vote was apportioned according to the mileage. £380 being paid to the Waimea Road Board and £120 to the Nelson Board of Works.

The sum of £4,285 was voted by the Council for works to be paid for in land. Only one amount has been paid, viz., £641 3s. 11d. for Waituhi Road, Takaka.

The sudden discovery of gold on the South-west Coast of the Province, has necessitated a very large expenditure on the part of the Provincial Government, amounting to £10,371 4s. It has however caused a more than corresponding increase in the revenue, which from this source is as follows:—

Miners' Rights, Licenses, Fees,
Fines, &c. ... 7,086 15 1
Gold duty ... 11,876 10 8
Customs duty at Greymouth ... 2,416 4 4

Making a total of £21,409 10 1

And as I mentioned in the previous part of my report, I consider there is yet a considerable amount due on account of Customs duty. The salaries that have been paid by the Provincial Government on account of the expenditure are Warden, £300, Warden's clerk, £150, and Sub-Warden, £350. The two first named gentlemen receive an addition from the General Government. There are about 8 constables employed, at from 11s. 6d. to 13s. 6d. per day, and travelling expenses. A detailed account of the expenditure has been prepared, and will be laid before the Council.

The following is an account of the unauthorised expenditure for the past Financial year, which requires to be legalised by the Council.

Superintendent's Department ... 2 1 3
Medical ... 49 7 8
Charitable Aid ... 58 2 0
Education, Collection of rates ... 0 0 3
Supreme Court Witnesses ... 18 4 0
Surveys, &c., ... 1,010 11 5
House for Fire-engine ... 22 10 4
Hospital, Outbuildings, &c. ... 2 5 3
Gaol, Drainage, &c. ... 3 3 0
Roads between Wai-iti, Wan- gapeka, &c. ... 53 6 9
Main South Road ... 37 16 6
West Coast Roads ... 1,891 18 10
Pelorus Road ... 25 4 7
Stone Separating Machine ... 3 15 0
Pounds ... 2 0 0
Waterworks ... 186 17 3
South-west Gold-fields ... 10,371 4 0

£13,738 8 1

I have, &c.,
H. D. JACKSON,
Provincial Auditor.