property at the disposal of the Education Board should be set aside for 30 years for the purpose of providing school accommodation, in which the future is as much interested as the present. Should you concur in this proposal, there will be no difficulty, I apprehend, in getting the necessary Act passed by the Colonial Legislature, and a sum of £30,000 will be available for the objects in view. Upon the subject of Education generally, I have much pleasure in soliciting

School Inspectors Report

your attention to the very valuable and exhaustive Report of Mr Hislop, the Inspector of Schools; a report which embodies many most important practical suggestions—suggestions which are being given effect to by the Education Board, in so far as it is empowered to do so. Perhaps, however, the most valuable suggestions of all are those which cannot be carried out without your concurrence. I allude to the appointment of an additional Inspector of Schools, and the establishment of a Normal or Training School in which to educate competent teachers. To my mind, it is manifest that, if we are to have value for the money which we are expending in Education, it is absolutely necessary that there should be complete and thorough inspection of schools, and the means of turning out a sufficient number of teachers specially trained for the all-important work of Education. I hope that you will concur with me in making adequate provision for both these objects.

Boys High School

I regret to find that there seems to exist a good deal of dissatisfaction with regard to the Dunedin Boys’ High School. A movement is being made to transfer the control of the School from the Education Board to the University Council. I fail to see, however, that such a change will at all tend to mend matters; inasmuch as it is believed that the quality of the teaching is quite as good now as it is likely to be then. What is required is an adequate number of scholars to attend the school, and I do not think that any change of management will effect this. The truth is, that the circumstances of the Province have entirely altered since the school was founded, and the establishment of the Otago University, together with that of the various Grammar Schools, which afford a comparatively high class education throughout the Province, have so far removed the necessity which existed for the High School at the time of its erection. Under all the circumstances of the case, it is evident that something must be done to place the school on a more satisfactory footing. With this view a Commission has been appointed to enquire into the subject. Pending the report of the Commission, it may be well to defer taking any action in the matter.

Railway, Clutha to Mataura

Gentlemen,—Another very important subject to which I desire to solicit your favorable attention is the completion of the Southern Trunk Railway. You are aware that contracts are now under way for the construction of the line from Dunedin to Clutha and from Invercargill to Mataura. Unless, however, and until the line is constructed between Clutha and Mataura, the railway will be comparatively useless as a main trunk line; and I feel assured that if the matter is left to the Colonial Government, it will be years before the missing link in the chain is provided.

It is therefore proposed that the Province should at once proceed with the construction of that portion of the railway, together with a branchlet of some eight or ten miles to Tapanui. There is nothing to prevent the work being finished in a couple of years, so as to enable an unbroken line right through to Invercargill to be opened for traffic. The estimated cost of the work, independent of the branch to Tapanui and exclusive of rolling stock, is £150,000, an amount which can be produced from sales of the land through which the line would be constructed.

There are between Clutha and Mataura some 300,000 acres of Crown land, much of which is admirably adapted for settlement, and which only requires a railway to render it available. Proposals have been submitted for the construction of this line within two years of date of contract, payment to be made at the rate of £30,000 a year for the first two years, and the balance within one year of the completion of the line. Should you concur in this mode of payment, there will be no difficulty in procuring the necessary funds by disposing of not more than a sufficient quantity of land in the district to meet the first two payments as they become due, and reserving the remainder from sale until the line is completed. Run No. 111 alone, through which the railway passes, will, if reserved until the contract is completed and then sold in ordinary-sized farms, go far to meet the last payment.

Railway, Dunedin to Moeraki

I should be glad if we could see our way to the adoption of a similar process as respects the line from Dunedin to Moeraki. It is of the utmost importance if the railway system is to be an immediate success—that the main trunk line should be at once completed from the one end of the Province to the other. Should you be of this opinion, and agree to the hypothecating of land by way of security, there will (in the event of the Colonial Government not doing so) be little difficulty in proceeding with the Moeraki line without delay. We should thus secure an unbroken line of rail from Waitaki to the Bluff and Lake Wakatipu, thereby enabling the growers of agricultural produce to compete in the markets of the world, by means of speedy and cheap transit to the port of shipment, and saving a large proportion of the annual expenditure which must otherwise be involved in the formation and maintenance of metalled roads—expenditure which may be directed towards works in the interior of the Province instead.

Main Road to the Interior

It is intended this year very considerably to increase the appropriation towards the main road to the Lakes, both by way of Naseby and Roxburgh—that portion of the road extending from Clyde to Queenstown especially requires to be rendered safe for carriage traffic. I believe we have no conception of the number of travellers from Australia or the extent of traffic which will cross the island so soon as a practicable road is discovered from Lake Wakatipu to Milford Sound.