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stantial bridge erected over the Waiopai, on the Ryal Bush Road. A very fine road is in course of construction between Invercargill and Bluff Harbour, and also from Invercargill into the Interior, by Ryal Bush. I hope that this line will be prosecuted with vigour during the present season.

Between Invercargill and Riverton, also, considerable improvements have been effected.

I regret that, from some culpable neglect on the part of the officials in this district, the

road from Riverton towards Mount Pleasant has not been touched, although orders have been issued through the Engineer's Department to expend £500 on this line; directions have again been sent down to the same effect.

So much for what has been done with the sums appropriated to Roads and Bridges.

The expenditure on Surveys has effected the following results:—

ESTIMATE of results of SURVEY OPERATIONS from 31st March to 10th December 1860.

P.S.—As active Survey operations only commenced in the Spring, the quantities executed are very much below the average of the 12 months.

EXPENDITURE of the SURVEY DEPARTMENT from 31st March to 10th December 1860.

From the particulars now specified as to the Public Works and survey operations, it will be seen that the public expenditure has been generally and equitably diffused throughout the Province, without reference to the revenue derived from any particular district.

A considerable quantity of the land sectionized is situate in the Northern District. In conformity with your recommendation of last session, I have taken the necessary steps to have three Hundreds proclaimed in the Northern District. Next mail from Auckland will, it is hoped, bring the proclamation, after which the land will be open for selection. I anticipate a considerable accession to the revenue the moment this is done. Inclusive of the surveys in the proposed Hundreds, there are now 140,000 acres of land throughout the Province mapped and surveyed into rural sections of 50 to 100 acres in size, and ready for selection, as follows:—Clutha, 50,000 acres; near Dunedin, 40,000 acres; near Invercargill, 40,000 acres; Jacob's River, 10,000 acres. By the end of May other 150,000 acres will be surveyed.

Of Schools,—there have been three new buildings erected, and there are now 20 schoolmasters throughout the Province paid by the Government.

The amount expended on Immigration, as above stated, has been £18,575,—by means of which 2532 souls have been landed in the Province,—making our total population at this moment from 12,000 to 13,000.

Looking at the slight impression which the Immigration of the past year has had upon the labour market, and considering the absorbant power of the Province, I conceive that we may safely land at one ship-load of Immi-

grants every month, all the year through. With this view I purpose submitting to you a Debentures Ordinance, enabling the Government to raise £30,000 for Immigration purposes. The Debentures Ordinance passed last session has been disallowed by his Excellency's advisers on some technical ground, which we must now endeavour to obviate.

There are now three ships with Immigrants on the way,—one of which, owned in this Province, will land passengers at the Bluff. The applications for assisted passages for the Southern Districts were so few in number and so long in being sent in, we could not have had a vessel calling there earlier.

The chief business of the Session will be to consider, and I trust to assent to, propositions on the part of the Government, involving works of great magnitude, and tending towards the rapid development of the boundless resources of this Province. I desire, especially, to allude to the following, viz.:—

A plan and estimates which will be placed before you, for the recovery of a portion of Dunedin harbour from the sea—a work a work which, although primarily affecting the town of Dunedin, is one nevertheless which deeply involves the interests of the whole Province—a work from which the Province, as a whole, will derive considerable pecuniary benefit. It will be seen from these estimates that 22 acres of the most valuable building ground may be recovered, at a cost of £33,000, which, if sold at £15 a-foot frontage, will produce £72,000, which will go into the General Treasury for the benefit of the Province. This operation will involve a steam dredge, by means of which the channel will be deepened sufficiently to enable most of the vessels from Britain and