conveyed to be shipped at Black Head, thus shortening the land carriage by some 25 or 30 miles, £1000—for the Te Auto Line (in addition to unexpended balance), £8,000—Shakespeare and beach road at Napier, £500—for No. 3 line at Wanganui, £1000—for Wanganui Bridge, £900—Turakina Bridge, £750—the Waiwetu Bridge, £114—for Kitchen and Outbuildings to the House of Assembly, £500—Police Court at Napier, £400—Pilot’s House, £200—Survey Office at Wanganui, £250—barracks at Napier, £2400—for Bridges at Porirua, £200. I have further placed on the Estimates £2500 as subsidy to the Wanga Wonga—£2100 for the Mail Service—£1000 for the establishment of Local Posts—£7000 for Surveys—£500 for Education—£500 for Grants in Aid—£2000 for Miscellaneous Contingencies, &c.

With respect to Immigration,—looking at the present state of the labour market—to the probability that there may be during the next few months a considerable influx from the Nelson diggings, and also to the prospect of a considerable number of natives requiring employment in consequence of the destruction of their crops by the floods, I would advise that we should restrict the immigration this year to parties who are sent for and whose passages are guaranteed by their friends in the Province, with perhaps this further extension—that the Province should accept and pay half the passage of all immigrants of the labouring class who may be introduced by shipowners or charterers, the immigrants themselves paying half their passage before embarking, and giving promissory notes for the remainder. I propose this plan, not in the belief that it will promote any large immigration, but as an experiment repeatedly urged upon me, and well worthy of a trial during a time when the labour market is certain of being tolerably well supplied. I have therefore only proposed £10,000 for immigration during this year.

You will find, after these appropriations, that there still remains some £15,000 or £20,000 undisposed of. I have purposely left this balance, partly because it is possible that the Union Bank which accepted the negotiation of the third loan on the same terms as the second, may, in consequence of the Governor’s disallowance of the Act, refrain from negotiating it until the doubts created by such disallowance shall have been quieted, but chiefly because, in the event of the Manawatu district and Seventy Mile Bush being purchased, a considerable sum will have to be expended in surveys and roads before they are open for settlement.

Regarding, as I do, the continuation of the road from the Wairarapa to the Rua Taniwha, through the Seventy Mile Bush as the most important work, as essential to the preservation of the Province within its present boundaries, I cannot too earnestly urge you to push on this road whenever the district is acquired, at whatever cost and with all the force you can command.

So many parties have, since the Compensation Commissioners closed their Court, brought forward claims, who appear to me to be quite as much entitled to compensation as those to whom it has been awarded, that I feel bound, however reluctant to re-open the question, to recommend the appointment of a Select Committee authorized at once to adjudicate upon these new claims.

Believing, myself, that Sir G. Grey’s Land Regulations, the main feature of which was to reduce the price, have, in every sense, operated most beneficially; have promoted very materially the rapid settlement of the Province, and have placed the lands freely within the reach of all classes, I am not prepared to propose or support any fundamental alteration in them. At the same time, as the question of selling land on deferred payments has been raised and has found acceptance with a large number of the settlers, and as I can conceive nothing more detrimental to the Province, than a want of stability and permanency in its land system, I earnestly hope that the question will be fully discussed, and some final decision arrived at. The objections I entertain to it have been so repeatedly stated, as to render it unnecessary to repeat them. The Council will remember that any measure they may pass on this subject, will have to be reserved by me for the Governor’s decision.

It becomes now my duty to inform you that my Executive, in consequence of three of their number having failed to secure seats in this Council, have tendered their resignations, and that I have intimated that I shall be prepared to accept them as soon as the Council shall, by an avowal of its policy, have placed me in a position to select their successors. With a ministry thus holding office only until their successors are nominated, it will not be expected that I should bring before you any measures involving questions of policy.

The Estimates will be laid upon the table in the course of a day or two—and the only Bills that I propose to introduce are, a Bill to establish a Board of Commissioners for the harbour at Napier—a Bill to divide the Province into districts for the purpose of the registration of deeds—a Bill to quiet doubts respecting the Act authorizing the Loan of £25,000—a Bill to grant facilities to Publicans for transferring their Licenses—and a Bill to establish a Race Course at Wanganui.

Having thus placed before you the present condition of the Province—having shown the results of the Policy hitherto pursued, it only remains for me to express an earnest hope that the result of your deliberations may ever be to promote the happiness and prosperity of all classes—and at the same time my firm conviction that if the first Council has been able to effect so much, you with every difficulty overcome, with an overflowing chest, with a fair supply of labour, cannot fail to accomplish still more, and that satisfactory as has been its past progress, the Province must, during the next four years advance in all the elements of wealth with far greater rapidity.

I. E. FEATHERSTON,
SUPERINTENDENT.