1420
THE NEW ZEALAND GAZETTE.
[No.65

tendency to increase the rates of interest, the cheap-money scheme of the colony
proved a great boon not only to settlers, but to all requiring to borrow. My
Ministers have under their consideration an amendment of the Advances to Settlers
Act to meet the cases of lessees on Education endowments who claim to have
advances made on their improvements in excess of the amounts mentioned in their
leases, upon which the Educational authorities have agreed to pay compensation.

Fair progress has during the year been made for the purchase of lands for
closer settlement. The earth-hunger continues, and to meet the demand the
acquirement of lands suitable and required will be vigorously proceeded with.
The law in respect to acquiring lands within boroughs for workmen’s homes has
proved to be defective: owners, on being notified to place their land under offer,
have immediately transferred portions to relatives so as to bring the area within
the limit allowed to be retained, thus defeating the object of the Legislature.

MR. SPEAKER AND GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

The estimates of the year, with a due regard to economy and the requirements
of the colony, will in the ordinary course be placed before you. Until the war in
South Africa is at an end a normal condition in respect to defence expenditure
is impossible.

Owing to the large demand caused by unusual conditions in the English money
markets it was not deemed advisable to follow the usual course of raising the money
required under the Aid to Public Works Act in London. My Ministers deemed it
desirable to raise the half-million loan locally, and the experiment has proved
entirely satisfactory. The amount asked for was almost doubly subscribed. A
pleasing feature was the large number of small amounts that were offered, and offers
of £5,000 and under were allotted in full. There was no commission or payment
for underwriting, the only expense being that of advertising. An important departure, and one which my Advisers anticipate will be followed in other colonies, was
that of the interest being made payable in New Zealand, Australia, or London.

The traffic and revenue on our railways, I am glad to say, still continue to
increase, and an increased expenditure of necessity follows. With the arrival of
the extra locomotives and rolling-stock now on hand and ordered, the requirements of the railways will be fairly met, and at no distant date, both as regards
locomotives and rolling-stock, my Ministers hope to have the same constructed
within the colony.

Another matter demanding attention is, that some provision should be made
whereby railway servants who, through age or infirmities, or by meeting with
accidents, may, when retired, receive some superannuation or other allowance.
To retire some of the older servants under existing conditions is not, my Ministers
think, a fitting reward for faithful services rendered. This lack of consideration
not only applies to the railway but to other public servants, and to continue the
present anomalous position is undesirable. Some Civil servants on retirement are
entitled to pensions, others are entitled to a month’s salary for every year’s
service, and others are granted an amount equal to one month’s salary, but not
exceeding in the whole a sum equal to one year’s salary. Very many whose pay
does not enable them to save, be they ever so thrifty, are, as matters now stand,
cast adrift without receiving anything. The classification of the whole of the State
departments, and the adoption of a superannuation scheme and fund to which all
the State servants contribute, are matters worthy of grave consideration.

Fair progress has been made with the construction of the main trunk lines of
railway during the recess, and the vigorous prosecution of these works will be
continued. There is a matter of considerable importance in connection with
several of these lines of railway—namely, that lands suitable for close settlement are increased in value as the work of construction proceeds, and my
Ministers consider that if these lands are acquired by the State under the Land
for Settlements Act, say, within five years from date, the now existing value of the
lands should be the basis upon which the price to be paid by the State should be
determined.