1226 THE NEW ZEALAND GAZETTE. [No. 55

the colony’s favour by the Supreme Court; it was then taken to the Court of Appeal, which also decided in the colony’s favour. The debenture-holders then took the case to the Privy Council, which has decided that the course taken by the colony was legal, and within the terms of the contract. It will thus be seen that the Arbitration Court, the Supreme Court, the Court of Appeal, and the Privy Council have all affirmed that the action of the Government throughout has been within the law, and that neither the company nor the debenture-holders have, under the circumstances, any legal ground for complaint. I understand that Parliament will be petitioned, and that consideration for the debenture-holders will be asked for. In consequence of the delay that has taken place settlement of the land has been retarded. An amendment of the Land Act will be required, so that justice may be done to occupiers of land within the Midland area.

As the outcome of the popular will the duties of the State have been considerably enlarged. The increased administrative work owing to growth of population and business and increased State departments has unduly taxed the energies of Ministers to such an extent as to warrant your attention and consideration.

The time is opportune to deal with overcrowding in our cities, and, by legislation generally, to deal with this important part of our daily life on modern and progressive lines.

The commerce of the colony, and improved connections by means of steamers with the markets of the world, are matters of the greatest importance, and my Advisers are of opinion that every effort should be made to open up new markets for our produce, and to regulate established markets on equitably framed conditions.

The Chambers of Commerce, if placed on a satisfactory footing, by being made truly representative of the commerce of our country, should be of more real benefit to the community than they are at present. To enable this to be done, proposals will be placed before you.

The experience of the past few years points to the necessity for consolidating and amending our labour laws. Owing to lapse of time and altered conditions, other laws require revision, amendment, and consolidation. Proposals will be made dealing with domestic and other reforms.

The lessons taught by the war in South Africa have not been lost upon my Ministers, and heavy liabilities have been incurred by increasing the number of Volunteer corps, and obtaining arms and munitions of war.

In view of late developments, and to meet the altered conditions, the laws relating to the Defence Force require revision, and necessary amendments will be submitted.

The establishment of a fully equipped reserve force for Imperial and colonial purposes, within prescribed limits, and on terms to be arranged between the Imperial authorities and this colony, is worthy of your consideration.

The present system of local government is not satisfactory. Reduction in the number of local authorities, greater power, and assured finance are essential; and, though the matter is one that requires much attention, time, and thought, I hope that you will not shrink from the task of placing local government on a more satisfactory basis.

Your attention will be required in respect to the carriage of our mails via San Francisco, and also mails for the Pacific Islands and elsewhere. In connection with extended and improved mail-services the interchange of products and the development of trade generally should form an important factor.

The improvement in the breeding of horses and cattle, the inspection of meat, slaughtering of sheep and cattle, and grading of products are subjects worthy of consideration.

In the interests of the educational system of the colony, proposals will be submitted dealing with teachers’ salaries. You will also be invited to consider legislation for granting further aid to technical education, in the interest of the youth of both races; also to consider several necessary amendments and consolidations of the laws affecting labour, regulating the hours thereof, and providing for compensation for accidents.