construct the railway, there would have been little or no difficulty in the matter. As it is, I am glad to say that a plan has been arranged, subject to your concurrence, whereby it is hoped that the work may be shortly proceeded with. The Provincial Treasurer, during his recent mission to Auckland, has succeeded in placing matters on such a footing as I think cannot fail to secure the object aimed at. As to this you will be furnished with full information in due course. I sincerely hope that no unnecessary delay may take place in the commencement of a work which will be the prelude to a new era of prosperity and of progress to the whole Province.

But, Gentlemen, although the progress of the Province during the past year has not come up to my desires, it must not be supposed that we have been standing still. I venture to think that considering the drawbacks with which we have had to contend, the progress made in the actual work of settling the country, which, after all, is the great mission of the Provincial Government, will compare favorably with that of any previous period. There has been, I believe, more effected in the construction of roads and bridges than has been accomplished for many years past. There has been expended during the year, throughout the Province, on district roads alone, irrespective of main roads, not less than £40,000, which amount has been administered by local Boards, under the system of subsidies of £2 to £1—a system, by the way, which I am persuaded the whole Province will regret the relinquishment of, and which might easily have been continued for several years to come, had the country been content to continue it.

As regards actual agricultural settlement and occupation, it may be interesting to learn, from the statistics recently taken by the General Government, that the number of holdings which have been occupied and brought under cultivation during the past two years is 782, or about one-third of the whole agricultural tenures in the Province.

There are various important undertakings which have been completed or initiated during the year, upon which we may well congratulate ourselves. Among the chief of these might be enumerated the various stone and iron bridges upon the great North road, the bridge at Balclutha, the bridge across the Shotover at Foster’s Ferry, the stone graving dock and the floating dock at Port Chalmers, and the Industrial School; this latter is, perhaps, of all our undertakings, the one for which posterity will have cause to be most grateful.

I am glad to say that, so far as it has gone, the salmon experiment has been a complete success.

Gentlemen,—I feel assured that it will be satisfactory for you to be told that, with very few (comparatively unimportant) exceptions, the whole of the votes of last session, for Public Works, have been expended. You will also be glad to hear that your recommendations in respect of Departmental retrenchment, have been carried out to a very considerable extent, and when the current year’s Estimates are submitted to you, I hope to be able to recommend still further reduction without detriment to the public service. I need scarcely say, that it is by no means an agreeable task for any Government to have to dispense with officers who have been long in the service.

The New Hundreds recommended by you last session have been proclaimed, and are now in the market.

There are various matters of great public importance which will be submitted to you during the present Session, and which, I doubt not, will engage your earnest consideration. Among these I may allude especially to resolutions which will be submitted to you, to be made the basis of an Act to be introduced into the Assembly, providing for a fixed rate of compensation for land declared into Hundreds. Also to the question of the construction of a wet dock at Oamaru. You are doubtless aware that a Commission of professional engineers has reported that a suitable dock can be constructed at a cost of £40,000—a sum which, whether we look at the importance of the district, its large contribution to the revenue of the Province, the vast saving which will be effected in the shipment of its produce, or the stimulus to increased production and exportation which greater facilities for shipment will afford—the Province is bound to expend. It is proposed to devote to the work, out of revenue, £20,000, to be expended over two years, and to apply to the General Assembly for authority to raise an equal amount by loan, secured on the Provincial revenue. An Ordinance will be submitted to you on this subject, which I hope will meet with your approval.

Another very important work which it is to be hoped will be commenced this year, is that of bridging the Waitaki river. During the past two years I have placed myself repeatedly in correspondence both with the Provincial Government of Canterbury and with the Timaru and Gladstone Board of Works, with a view of obtaining their co-operation in this great work. From the recent action of the Timaru and Gladstone Board, in relation to this subject, I am induced to hope that they will shortly be in a position to provide a fair share of the cost of the bridge. Should it turn out otherwise, so strongly am I impressed as to the beneficial results which must ensue from the carrying out of this work, that I would not hesitate to recommend its being gone on with at the sole cost of this Province.

The same Commission which visited and reported upon the proposed Dock at Oamaru, visited Moeraki and Waikouaiti. At the latter place it appears that an outlay of £5000 will provide facilities for export and import at that part of the Bay situated under the North Head, which will materially benefit the whole of this important district. It is, therefore, contingent upon the Hawksbury Bush being sold as a means of providing the necessary funds. At Moeraki, from its great natural advantages, a comparatively small sum will suffice to provide for a steam-boat wharf there, for which purpose an amount will be placed on the Estimates.

A proposal will be submitted to you for the construction of a Railway from Port Chalmers to Dunedin. This is a work in which the whole Province is directly interested; it is one, however, which I think can be accomplished without materially burdening the ordinary revenue of the Province.

Another important matter, to which your sanction will be requested, is the subsidising a fortnightly steam communication along our southern and western sea-board, calling at the various harbors and settlements between Dunedin and Hokitika. There is a large territory along the seaboard of the Province admirably adapted for settlement, which is at present unavailable from the difficulty and uncertainty of access; take as an example the country behind the Tois Tois, where a large agricultural population might find a home.

An Ordinance will be submitted to you for the reduction of the number of District Road Boards, increasing the power of such Boards, and placing them upon a more permanent footing, and also for altering the constitution of the General Road Board; also, an Ordinance for the re-adjustment of the Provincial Electoral Districts, and providing for the more equitable representation of the people in the Provincial Council. Although this matter has been very carefully gone into during the recess, yet, as it is a subject which vitally affects the rights and privileges of the whole community, it would perhaps be as well to remit it to the investigation of a Select Committee, or perhaps better still, before passing an Ordinance to allow the various districts, to have an opportunity of satisfying themselves that whether their representation is being increased or diminished, they are being fairly and justly dealt with. Also an Ordinance for giving practical effect to your resolution of last Session, for the establishment of a University.