The estimated revenue for the current year will enable a larger amount of public works to be Estimate 1. undertaken throughout the interior of the Province than has been the case for several years past. The estimates have been carefully prepared, with a view to making the most of and equitably distributing the means at our disposal.

As you are aware, local Road Boards during the past year have been subsidised to the extent of £2 to L1. Should the General Assembly continue its Road Board subsidy, the same rate will, it is anticipated, be maintained during the current year also. In any case it is proposed to subsidise out of Provincial revenue to the extent of pound for pound. It is to be regretted that the Road Board system has not been taken advantage of within the gold fields. It is proposed, however, to subsidise local contributions on gold fields to the same extent as District Road Board Rates from Provincial revenue.

The Colonial Legislature, at its last Session, authorised a special loan of £70,000 for certain Northern District Loan specified public works in the Northern district of the Province. Of this sum, £24,000 is being expended on the Breakwater at Oamaru—a work which is now progressing favourably, and which promises to be a great success. A further sum of £25,000 is to be expended on a Tramway from the main line up the valley of the Waitaki, which has been surveyed to Awamoko. Plans and specifications are now ready, and tenders are being called for.

The sum of £13,000 is available for roads and bridges, upon which it is being expended. A tender has just been accepted for the erection of stone bridges across the Otepopo River and the Island Stream. The remainder of the loan is to be devoted to Harbor works at Kakanui and Moeraki, with regard to which I hope to submit to you definite proposals before the Session closes.

With a view of enabling you to proceed without delay to the practical business of the country, the Estimates will be submitted at once, as well as all Resolutions and Bills proposed to be initiated by the Government.

Papers will be laid before you relative to the defence of the Port of Otago against external Defence of Port Otago aggression. There can be no doubt, if the Port could be effectually defended against such at an outlay of £10,000 to £15,000, the expenditure would be amply justified. This is a question which very closely affects every interest throughout the Province, when we reflect that there is frequently afloat at Port Chalmers property to the extent of half a million of money, which, in case of war, is absolutely at the mercy of any enemy that may choose to pounce upon it.

An application has been made on behalf of the associated Friendly Societies, requesting that Friendly Societies a suitable piece of ground may be granted to them for their annual and other gatherings. Considering the benevolent character of these societies, and the amount of distress relieved by them, which otherwise would have to be provided for by the State, I trust you will concur with me in giving effect to the application when it is formally submitted for your approval.

It will be seen from the correspondence with the Home Agency that a contract has been Immigration entered into on behalf of the Province for the resumption of Messrs P. Henderson and Co.’s line of emigrant ships from Glasgow to Otago direct, also that Mr Auld has been urged as to the expediency of conducting emigration by steamers direct to this Port. As the General Government has warmly approved of this suggestion, and has directed the Agent-General accordingly, I am not without hope that the proposal will be carried into effect. Although it is purposed to continue the Immigration-vote upon the current year’s Estimates, in case of contingencies, I do not anticipate that it will require to be operated upon, inasmuch as the Agent-General has been instructed to defray the cost of emigration to this Province out of the Immigration Loan. You will, I am sure, be glad to hear that the Colonial and Provincial Agencies are now working harmoniously.

Another important proposal, with which I venture to hope for your concurrence, is the Lunatic Asylum removal from the present Lunatic Asylum of all able-bodied patients who are pronounced incurable, of which now there are upwards of 40 in the institution, to a suitable farm in the country, where their labor might be made available not only for their own sustenance, but towards the support of the Asylum in Dunedin, and with advantage to their individual comfort. The nearest available land in possession of the Government is the Police paddock at Tokomairiro, containing 86 acres, through which the Southern Trunk Railway will pass, thus bringing the proposed site within two hours of Dunedin. Unless some such suggestion as this is adopted, it will be necessary still further to enlarge the Asylum buildings.

A proposal will be submitted to you to throw open the Dunedin Hospital to the whole of the Dunedin Hospital legally qualified medical practitioners in the city. Should the University Council establish a school of Medicine and Surgery, on the strength of which being done I agreed to the further endowment of 100,000 acres of land, it might be well to arrange that the Hospital should be connected with said school, under the direction of the medical and surgical professors. I am also disposed to think that the Lunatic Asylum should be under the direction of the Professor of Mental Science in the University. These are important changes, which commend themselves to the Executive Government, but with respect to which it is felt expedient that no action shall be taken until you should have had an opportunity of expressing an opinion.

A proposal has been submitted to the Government by responsible persons who are prepared to Harbor Reclamation reclaim the whole of the mud flat at the head of Dunedin Bay, covering an area at