the important facts,—that by the dismemberment of the Province, you have been stripped of the greatest part of your land revenue, that the whole cost of the General Government (including the large subsidy paid to the Coleman steamers) is a charge, not upon the territorial, but exclusively on the Customs revenue—and that the expense of the General Government is increasing at such a rate, as to threaten, before long, to absorb the whole of the Customs, leaving the Provincial Governments dependent on their Land Revenue alone. Now, when I consider, that while the Land Sales of Wellington (after deducting the one third impounded by the General Government) cannot be estimated at more than £14,000 for the present year, those of Hawke’s Bay are estimated at £20,000—that while Wellington contributes out of the Customs Receipts at least £22,500 towards the expense of the General Government, Hawke’s Bay does not contribute more than £2000, I must say, that in my opinion, it is neither fair nor reasonable, to call upon this Province to pay a greater portion of the subsidy than may be contributed by Hawke’s Bay.

While I congratulate you upon having completed in this Province about 130 miles of metalled roads, I cannot conceal from you, that the expense of keeping the trunk lines in repair, is becoming so serious an item in the annual expenditure, amounting to several thousands, that it is absolutely necessary to devise some means of relieving the revenue of some portion of this charge, if we are desirous of meeting the demands made upon us in every part of the Province, for assistance in making district roads. A general land tax has been suggested by some, but the difficulty and expense of its collection, and the unfairness of calling upon those who are obliged to tax themselves for district roads, to pay an additional tax for the maintenance of trunk lines, are grave, if not fatal objections to such a plan. By others it has been proposed that the land within a certain distance of the trunk lines only should be taxed for their repairs, but I doubt, whether even if we overcome the difficulty of defining within what distance of the road, lands should be taxed, an amount adequate for the purpose, could be raised, without imposing a far heavier rate than the settlers would submit to. It seems to me, that the plan of taxing those who use the trunk lines by levying tolls, is not only the most just in principle, but will also be the most productive. From a return of traffic taken at Kaiwarra, it appears that by a moderate scale of tolls, a revenue of from £1500 to £2000 a year might be raised,—I purpose, therefore, submitting a Bill authorizing the establishment of a Toll-gate at Kai Warra Warra.

The importance of a deep water wharf is so fully recognized by all classes, and has been so forcibly urged upon the Government, that I feel assured, especially with the prospect of Wellington being made the Port of call for the Panama line of steamers, if proper facilities are afforded, that you will readily co-operate with me in giving effect to so unanimous an expression of opinion.

You are aware that after a portion of the reclaimed land had been sold, some of the purchasers raised a question as to the power of the Government to sell it, and obtained a decision of the Supreme Court in their favour. In consequence of that decision, with one or two exceptions, the purchasers and the Government have been precluded from offering the remaining portion for sale. Since then the matter has been still further complicated by a blunder in the New Provinces Act,—by which the Reserves of this Province have been vested in the Superintendent of Hawke’s Bay. Until, therefore, this blunder be remedied by an Act of the General Assembly the Provincial Government cannot give a perfect title. But as there is not the slightest doubt that this flaw will be cured at the next Session of the Assembly, I do not apprehend, that it will in the slightest degree either depreciate the value of the property or operate against its sale, if the Council sanction it. It is my intention, therefore, to lay before you a Bill—authorizing the Superintendent to sell the land already reclaimed,—to go on with the reclaiming—and further empowering him to raise money, for the purpose, on the security of the land—the money so raised to be paid off out of the first proceeds. If this Bill pass—even if the late purchasers decline to pay their purchase monies until their title is perfected, there will be no difficulty, in selling the remaining portion, or in raising the funds necessary for carrying on the reclaiming, on a much more extensive scale than hitherto.

But at the same time that we proceed with the reclaiming, we propose building a deep water wharf, which will, I need not say, so enhance the value of the adjacent lands, that its cost estimated at £10,000 will probably be defrayed out of the profits accruing from the sale of the reclaimed lands, without necessitating any appropriation out of the Provincial Revenue.

As the proceeds of the sale of the lands already, or to be reclaimed, are thus proposed to be devoted to the construction of a work, the necessity of which, all classes are urging—as employment will at once be afforded to a large number of the working class—and as this Town will reap the chief advantage of the consequent large expenditure, I am not without hope, that those, who have hitherto objected to the sale of the land in question, will be induced to withdraw any further opposition. A Bill will be submitted authorizing the erection of a deep water wharf, and the levying of dues.

Although under the Amended Land Regulations of 1855, the Superintendent is authorized to attach to the Small Farm Settlements, land for pasturage purposes, no machinery has been created, by which the commonage land can be managed, except by the creation of the settlement into a Hundred—a system to which I find a very general aversion, as being too complicated to meet the requirements of Small Farm Settlements. I propose therefore introducing a Bill, to confer the necessary powers upon Wardens elected under the Public Boards Act, Session III., No. 3.

The Society of Odd Fellows having with the sanction of the Government (so far as it could legally be given) reclaimed a piece of land, on which they are at present building a Hall, which it is intended shall be available for public purposes, I shall ask your sanction to a Bill