South-west Goldfields, during the financial year commencing on the 1st of April last, having been considerably exceeded during the first half of the year.

I shall therefore have to ask your sanction to this surplus expenditure, and also to recommend you to appropriate a moderate additional sum for the service of the six months ending on the 31st March next.

At the same time I do not feel justified in holding out to you the expectation that the estimate of revenue upon which your late appropriations were founded will be so far exceeded during the present year as entirely to meet the past and proposed excess of expenditure for which you are asked to make provision, although a very considerable increase upon that estimate may safely be calculated upon.

But by means of that expenditure the sources of permanent revenue to the Province, hitherto dormant, are developed; a large and valuable tract of country, but a few years since uninhabited, and all but unknown, is made available to profitable occupation by the miner, who is but the pioneer of the permanent settler, and the objects of colonisation are advanced, with lasting benefit to the Province and to the whole Colony.

I regret that these results can only be attained by a temporary anticipation to some extent, of the increased revenue of which they will unquestionably be productive, but it will be my care, and I feel confident of your co-operation, to protect the more settled interests of the Province from any prolonged neglect or serious embarrassment from our efforts to promote the progress and permanent settlement of the Goldfields.

I have much pleasure in communicating to you that I found on the occasion of my late visit to the West Coast that the spirit of liberality and promptitude in which you have always provided for the wants of that district is fully recognised in every part of it, and the value of the services of Mr. Commissioner Kynnersley and of the officers who are associated with him universally appreciated.

The gentlemen of your body who accompanied me on that visit I am sure join with me in assuring you that we everywhere met with the most cordial reception, and in expressing the gratification with which we witnessed the signs of progress, which are apparent in all directions, and the energy and enterprise without which that progress could not have been accomplished.

They will also, I am convinced bear testimony to the foresight and ability which have been shown by the Commissioner in the application of the large funds which have been entrusted to him, and to the important results, especially in the Port and neighborhood of Westport, which have followed from their judicious expenditure. The amount of Customs and gold duties contributed to our Provincial revenue by that Port is already very considerable, and the extensive, and apparently permanent character of the resources of the districts by which Westport is surrounded, combined with its superiority as a Port, warrant the expectation that a large future revenue will be derived from it, and justify the heavy cost to the Province, by which it has been raised to its present position.

The Report of the Commissioner of the South-west goldfields, and of the Provincial Engineer, which will be laid upon your table, will supply you with detailed information upon the character of the Public Works which have been executed upon the West Coast since your last Session, as well as of those for which provision is most urgently required.

The numerous measures which have been passed into law during the late Session of the General Assembly, materially affect several of the subjects upon which you have expressed a wish to legislate, and I do not therefore propose to submit for your consideration any of the Bills which you desired should be prepared, until the Government is in possession of the Colonial Acts of the present year, and the Provincial Solicitor has had the opportunity to consider their bearing upon our local legislation.

OSWALD CURTIS,

Superintendent.

Printed under the authority of the Provincial Government, Nelson, by NATION & LUCKIE, Waimea-street, Nelson, Printers for the time being to the said Government.