June 30.] THE NEW ZEALAND GAZETTE. 1479

The excess of arrivals over departures gave the colony a large increase in population last year. The low birth-rate in some urban parts of the colony is, however, a matter for grave concern. A largely increased population is needed, and my Ministers are of opinion that if immigrants of the farming class of the United Kingdom were to come here, instead of swelling the population of alien countries, it would be to their advantage, to the benefit of the colony, and add stability to our Empire.

The Honourable William Campbell Walker, C.M.G., has, after nearly seven years’ faithful service, resigned the portfolio of Education and his position as a member of the Executive Council, and the Honourable Albert Pitt has been appointed Attorney-General and a member of the Executive Council.

GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

The estimates have been carefully considered, and, consistent with providing for an efficient service, strict regard for economy has been observed. With an increased population, extension of departments, and development of resources there must necessarily be an expanding cost. The estimated increase in the expenditure is proportionate to the estimated revenue.

The owners of large areas of land resident outside the colony are not taxed through the Customs, and, seeing the aggregation of large estates continues, my Ministers conclude there will not be any serious objection to increasing the present absentee-tax. The graduation of the land-tax, as now assessed under the existing law, also requires adjustment to make the same fair in its incidence.

You will be invited to enter into a new agreement under which the New Zealand and Australian Squadron is to be strengthened, and under which New Zealand officers and men are to be trained under favourable conditions.

To enable a reasonable preference to be given in favour of certain goods produced in the Mother-country, important fiscal changes are necessary: how and in what manner it will be for you to consider and determine. Paying due regard to our own industries, the lines adopted by Canada would best help British manufacturers without causing undue irritation to other nations.

HONOURABLE GENTLEMEN OF THE LEGISLATIVE COUNCIL, AND GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

During the recent elections several defects were found in our electoral system, and my Advisers are of the opinion that it would be consonant with democratic principle if the now existing anomaly was removed and single electorates alone obtained.

The wisdom of assisting by way of subsidy to steamers the placing of our produce in South Africa has been clearly demonstrated by the stupendous growth of trade with that country. Stock from the Argentine being prohibited owing to disease, further extension and development of trade may reasonably be expected, and for some years to come South Africa will be a good market for the staple products of New Zealand. Further, my Ministers consider it would be to the advantage of the colony should the sale of New Zealand meat be extended to the manufacturing centres of the United Kingdom, and that assistance to this end should be rendered. ’Tis well the British-bred should be British-fed.

Satisfactory progress in the placing of the people on the waste lands of the Crown has been made during the year. A large area of land is now open for selection. In respect to bush lands, proposals will be submitted allowing tenants to be rent-free for a time, and other conditions which, owing to want of proper communications, are now restrictive will be relaxed, and special efforts are being made to settle co-operative men and returned troopers on the land.