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But notwithstanding the amount of these first charges, which are fixed and irrespective of current receipts, I incline to look hopefully towards the Land Fund for a progressive increase, though not perhaps so sure and steady as that of the Customs Revenue.

The next evidence of progress to which I would direct attention is the very superior character of our immigrant labour—a fact which is the subject of remark and even surprise to visitors from other places, no less than of thankfulness and congratulation to ourselves. Looking to the extremely popular character of our Constitution, it is impossible to over-estimate the value of this advantage. We have it as a consequence of the care and discrimination used in laying the foundation of the Settlement. As like draws to like, so the solid and respectable elements in the first selections have attracted and put in motion a progressively increasing stream of emigrants from the old country of a similar character. This sort of action is the most powerful motive to colonization, and the character of the emigrants set in motion thereby will be always determined by that of those who have gone before. In the present position of this Settlement, therefore, it is well worthy of every fostering care and encouragement, as it will be the means of preserving the superiority of the mass of our population.

In connection with finance and supply of labour, I would remark that it is a matter of anxious consideration that the two should be carefully adjusted to each other; and although in the past year, owing to rapid advancement and consequent power of the settlers to absorb labour, the sums voted for Public Works could not be all expended, yet, on this point also, we have been highly favoured in comparison with other Provinces. Not a man or woman has been landed from the old country that has not had suitable and continuous wages placed at once in their possession—and forbid that it should ever be otherwise. Far from me be the remotest semblance of boasting, for in New Zealand we are all learners in the working of Constitutional Government, and our wisdom is to feel it so; but on this occasion we may fairly consider the difference of impression upon intending emigrants by letters from this Province, and by those from other parts of the Colony that have been less favourably circumstanced.

A Report will be laid before you of what has been done, and is proposed to be done, in conformity with the resolutions of your last Session on the subject of Public Works. I am happy to observe from that Report the prospect of a survey being made of the mud flats opposite to Dunedin, from Goat-hill northward, in the view of obtaining a grant of “land to be reclaimed from the sea.”

This work has been postponed for years past, owing to the urgency of other surveys, and the smallness of the staff; but when done it may probably lead to a material deepening of the channel, in the harbour, and to the recovery of valuable building ground, which will go towards repaying the expense of the works.

A Report, accompanied by a map, by the Commissioners appointed in virtue of your resolutions of last Session in reference to supplying Dunedin with water, and the correspondence thereon with the Town Board, will also be laid before you.

My purpose of withdrawing from the cares of office has been made known to the public, and I now allude to it for the purpose of stating that I have felt constrained in honour to bring in a Bill embodying the views of the Provincial Council on the subject of Education, as set forth in your resolutions already referred to in my Message No. 1 of your last Session (in connection with the observations on prorogation of Session 1857), made it binding upon the Government to bring in such a Bill. In the fulfilment of this obligation I have been thwarted and opposed, as I think, in a most unseemly manner; but nevertheless, the Bill being at last drawn, and about to be laid upon your table, my obligation is fulfilled, and I shall say nothing further on the subject. I have also to state that, in the face of a general election, I feel averse, by immediate resignation, to put the public to the unnecessary inconvenience of a two-fold election of Superintendent. At the same time I wish it to be known to the Council and the public, that although I have received no resignations, I have reason to feel assured that at the close of your present Session there will be resignations by members of the Executive who have felt bound to fulfil the obligations referred to in common with myself. This will cause a change in the constitutional advisers so close upon a general election, that it is my purpose to make up what may be called the interim Executive, irrespective of my own views of policy, whether as deduced from the past, or from what I have now further to state to you, and to be solely guided by what may appear to be in accordance with your majority.

In these circumstances the other Bills to be laid before you are as few as possible. They are—

1st. A “Pastoral Districts Roads Bill,” in lieu of that which was passed last year, and disallowed by the Governor on a technical objection, but remarked upon by the General Government as a good measure, and calculated to be useful. It is the same as the former, leaving out the clause objected to.