once, at the same time I am convinced that, with a view to true economy, the earlier we can lay down rails upon most of the main branch roads throughout the Province, the better.

You will be glad to know that the Railway between Dunedin and Port Chalmers is progressing satisfactorily, and is likely to be open for traffic in February next; also that the erection of the bridge across the Waitaki will be contracted for so soon as the necessary plans can be prepared.

The long delay which has occurred in placing additional land in the market has, as you are doubtless aware, seriously diminished the sum total of the revenue during the past year. Notwithstanding this, however, it will be observed from the balance sheet for the year, that the bulk of the votes passed by the late Provincial Council have been expended, and that £23,000 have been paid up to this date, by way of subsidy to District Road Boards, being £3000 in excess of the last annual vote. As a necessary result, you will not be surprised to learn that the Provincial account is at present largely overdrawn. From the steps, however, which are now being taken towards placing land in the market, and reducing the departmental expenditure, it is hoped that the account will speedily be in a more satisfactory position.

From the Estimates, which will shortly be put before you, it will be seen that the most rigid economy is being enforced, and that the annual departmental expenditure is considerably reduced. The Government has felt some delicacy in dealing with the estimates of expenditure connected with the Provincial Council, but are strongly of opinion that these may be greatly reduced. The matter is recommended to your careful consideration.

Gentlemen—I need not say that it is anything but a pleasant duty to have to dispense with the services of public officers from no fault of their own—the necessities of the service, however, and the exigency of the case, alike leave no option in the matter. While upon this subject, I feel that any retrenchment which can be effected here will be very incomplete, unless the General Government reduces the number of its civil servants by amalgamation of offices or otherwise. At present, £50,000 a year is retained out of our share of the Consolidated revenue, in respect of General Government services Provincially charged. I trust the representatives of the Province in the Colonial Assembly will endeavor to get this amount largely diminished, so that the difference may be applied to public works.

Resolutions will be submitted for your consideration, having for their object such amendments in the “Otago Waste Land Act,” as shall offer greater facilities and encouragement for the acquisition of land for settlement. It is hoped that your recommendations on this subject may be so unanimous as to secure their being given effect to by the Colonial Legislature.

A Bill will be submitted for your approval with a view to the consolidation of existing Road Districts, the establishing of Road Boards all over the Province, and the conferring of more extended powers on such boards. Should this bill become law, it will be a question whether or not it may be desirable to hand over the administration of the main roads to the district boards.

Resolutions will be submitted, expressive of your approval, of the provisions of the “Otago Settlements Act” being extended to various portions of the Province. Your concurrence will also be asked in the Province availing itself of the provisions of the “Immigration and Public Works Act,” in respect of immigration.

In fulfillment of a promise made by me at the late election, a commission has been appointed, comprising delegates specially representing the mining community, for the purpose of conferring as to the practical working of the Gold Fields Act, and the mining regulations, with a view of recommending such amendments as past experience may suggest. I trust the result of the conference may be beneficial.

Resolutions will be proposed, expressive of your concurrence in an immediate application being made to the General Government for the proportion due to the Province of the £300,000 allocated to the Gold Fields under part III of “Immigration and Public Works Act 1870.”

With a view to the more efficient administration of the Gold Fields, I have felt it my duty to call to the Executive Council, a member specially connected therewith whose time will be chiefly devoted to the mining interest. I hope this arrangement will meet with your approval.

In compliance with a resolution of the late Provincial Council, the Government some time ago framed certain conditions for the encouragement of the planting of forest trees, by means of free grants of land. A number of applications for such grants have been received. It has been found, however, in proceeding to deal with these applications that there are difficulties in the way of giving effect to them which were not anticipated, and which will require further consideration by the Government.

Among other subjects of more or less importance respecting which your advice will be solicited is the question of the Stewart and Traquair Hundreds. The latter, especially, is involved in a considerable difficulty. I would suggest the appointment of a Select Committee for the purpose of deliberating as to what is best to be done in the matter.

Gentlemen,—In conclusion, I have only to express my most earnest hope that in the fulfillment of the responsible functions which have been entrusted to us, we may all be guided by that spirit of enlightenment and of unity which will render our administration of affairs creditable to ourselves and beneficial to the Province.

I now declare this Council open for the despatch of business.

James Macandrew,
Superintendent.

REPLY TO THE ADDRESS OF HIS HONOR THE SUPERINTENDENT :-

1. We are glad to be able to concur with your Honor in your statement that the History of Colonisation does not afford an instance of greater progress than has been attained by this Province since the institution of the Provincial Council, and in your further statement that this progress would have been even more rapid had the Province been free from external interference, and been left to its own resources.

2. We are glad that the Southern Trunk Railway has been at last commenced, and we assure your Honor that the assistance of this Council may be relied on in every endeavor of your Honor to obtain an adequate proportion of the Colonial Loan.

3. We are glad to learn from your Honor the satisfactory progress of the Dunedin and Port Chalmers Railway; and agree that it and the other works to which you allude will prove very beneficial to the Province.

4. We regret the delay that has taken place in the sale of land, and in the consequent diminution of the revenue, causing an overdraft to a large extent; but we are pleased to learn that notwithstanding that fact your Honor and your late advisers still found means to carry on all necessary public works according to the votes and wishes of the late Council.

5. We agree with your Honor in the urgent necessity that exists for a large reduction in the departmental expenditure.