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The Provincial Government proposes to bring a Bill in the ensuing session of the General Assembly to enable it to be early the line to the permanent terminus at each end, along the towns of Campbell-town and Invercargill, and to take the land required for the railway on both sides; partial relief is expected under the authority conveyed by the Bluff and Invercargill Railway Ordinance.

I must forbear to bring under your notice in this place the liberality with which Mr. Thomson, of Drumedin, fully recognizing the utility of this work, freely gives the land required for this railway, as it passes through his property, and his promise in the same spirit to give the land required for the Oreti Railway in case that work should be proceeded with.

In the past thirteen months seven immigrant vessels have arrived from Great Britain, bringing seven hundred and forty Immigrants assisted by the Provincial Government; those Immigrants have been of a superior class, and with one exception the vessels have all been well furnished with due regard to the comfort of the Immigrants, and in excellent order.

All the arrangements of the Immigrants does credit to the judgment of Mr. Morrison, the Provincial Agent; to the efficient working of the agency that gentleman has organised on behalf of this Province, to the promptitude and activity which the carriers out, and the thoroughness displayed in an undertaking carried out on behalf of the Provincial Government.

In the last mail, the Provincial Government was informed that the iron bridge ordered for the Oreti was nearly completed, and for a less sum than the estimated cost; it was to be shipped in the Wildfire to the Thames, and as that vessel might be safely expected early in August. A considerable portion of the Telegraph materials has arrived in the Harwood, and there is good reason to believe it will shortly be extended between Campbelltown and this place.

The Provincial Government has hitherto been unable to arrange with the Government of Otago the point of junction of the trunk line with its extension in this Province.

The Estimates for the subsistence for the ensuing year have been prepared with care, and will be laid before you in a few days.

A number of Bills on different subjects will be brought under your consideration. I will not at present detain you by referring to more than one of those—the Hospitals Bill. Everybody is aware the new hospital is now nearly built, in a few days will be opened for the reception of the sick. The report of the Provincial Surgeon shows that the amount of sickness during the past winter has been considerable; the accommodation at his command hitherto has been so very limited and inconvenient that only a portion of the applicants could be received; it was painful to turn from the door many who, under other circumstances, should have obtained hospital treatment; at the same time much discrimination and firmness was required to distinguish fit applicants for reception from others whose admission on account of their distressing circumstances rather than on that of physical disease. The Provincial Government has been of opinion that the new hospital should be conducted as an infirmary for the relief and cure of disease, and not as a Renovation Asylum for the destitute who were not afflicted with any very obvious disease—yet the experience of the past year leads to the conviction that an institution of this description will be greatly required in the ensuing winter. The Bill now referred to, is brought before you with the view of having such an institution formed under the authority of its provisions; it would be supported partly by voluntary contributions, and partly would be maintained by this Council; the patients to be managed by a committee elected by the subscribers.

Such an institution is well calculated to relieve the distress of many who would not be entitled to admittance into an infirmary, and hospitals similarly organised have been found eminently useful in neighbouring colonies. I trust this subject will receive your careful consideration.

I have now to declare this Council is open for the transaction of business.