June 27.] THE NEW ZEALAND GAZETTE. 1531

longer hours are worked, and motive power is much cheaper than in this colony. Proposals to this end will be submitted for your consideration.

The occupation of the Native lands is desired by both Natives and Europeans. The spread of settlement is retarded by large areas of Native land lying waste, and with the necessity for closer occupation it is deemed essential, in the interests of both Europeans and Natives, that an initial effort should be made to place the Native owners on such of the lands as are required for their use, and, next, that the landless Natives of the same hapu or tribe should be provided for as tenants, and that the surplus lands should be acquired under a law similar in character to the Land for Settlements Act, the land to be dealt with through the Land Boards, and the proceeds to go to the Native owners; the settlement of the Natives on their own lands to be dealt with by the Maori Councils. A Bill dealing with this important matter will be introduced.

The mining industries of the colony, both gold and coal, are in a satisfactory condition. The discovery of gold-bearing reefs on the east side of the main range between Canterbury and Westland is important, and there are reasons for hoping that a permanent goldfield has been found in that locality. Dr. Bell, of Canada, has been appointed to the charge of the Geological Department, and exploration of the auriferous belts of the country is now being made. A conference, attended by the Wardens and Mining Inspectors and Engineers, has been held, and, as a result, extended and improved proposals for prospecting will be submitted. An increased supply of water in central Otago is required not only for mining but for general irrigation purposes, and, if provided, will prove most beneficial.

The colony will be represented at Bisley this year. The team which has been selected, it is anticipated, will fittingly represent the colony. The New Zealand Bisley team had the honour of winning the Kolapore Cup in 1904, and it will be very gratifying should the team which now represents New Zealand succeed in retaining the trophy.

The Imperial Government has placed at the disposal of New Zealand the gunboat “Sparrow.” Proposals will be submitted for her equipment as a training-ship, and you will be asked to make the necessary provision accordingly.

From various causes considerable delay has taken place in holding the Pacific Cable Conference. The Conference, I am pleased to say, is now sitting.

It is with regret that I mention the demise of the Honourable Sir Alfred Jerome Cadman, K.C.M.G., for many years a Minister of the Crown, and at the time of his death the Speaker of the Legislative Council. I further regret to have to mention the death of Mr. George Fisher, a former Minister of the Crown, and for many years member for the City of Wellington in the House of Representatives.

GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

The estimates of the revenue and expenditure for the year will be placed before you, and in their preparation due regard has been paid to efficiency and economy. The revenue for the past year exceeded the estimate, a substantial surplus on the year’s transaction resulted, and so far this year the receipts are in excess of the corresponding period for last year.

The over-subscription and satisfactory returns obtained on our last loan and the enhanced prices our stocks are realising denote a marked improvement in the public credit, and I am pleased to state that the rate of interest is lower. This will stimulate industries, the development of our natural resources, and assure a saving to the taxpayers.

The amount required for the payment of the pensions to the deserving aged of our colony will be found to be less than it was three years ago. The financial position of the colony has much improved, and my Advisers are of the opinion that the pension should be increased, making the weekly payment 10s. in lieu of 7s. now paid.