126

cent. on an outlay not to exceed £25,000—the Company binding themselves to keep the slip in efficient working order during the whole period of such guarantee. Looking to the vast increase of shipping in these seas, especially to the great and rapidly increasing number of steamers, to the enormous expense and losses inflicted upon the various companies by being obliged to send their vessels to Sydney for repairs—I think you will agree with me, that it is not possible to over estimate the advantages which the erection of a slip will confer upon this port. In order to render your harbor if possible still more accessible, and to remove every possible objection to it, and to afford increased facilities to the Panama steamers and shipping generally, I have recommend to you, in accordance with the suggestions of Capt. V. Vine Hall, the establishment of a harbor-light on Point Gordon, and extensive additions to the wharf. The light will enable vessels to keep clear of the shoal off Ward's Island, and also direct them to the anchorage in Worser's Bay. The proposed additions to the wharf consist in a lengthening of the southern end of the present outer T—an extension of the wharf 160 feet, with a cross head at the end 300 feet long and 50 feet wide; the extension and the cross head to be constructed with iron piles and framing.

The Otago S.S. Company have proposed to me the running of their two powerful steamers, the Scotia and Albion, between Melbourne and Cook's Strait, provided the Provinces specially benefited will offer them some encouragement. It is proposed to try the experiment for six months of despatching one steamer from Melbourne to Cook's Strait and Otago on the 11th; and the other from Melbourne to Otago and Cook's Strait on the 4th; both vessels returning to Melbourne direct from Otago and Cook's Strait respectively. Should the experiment answer the expectations of its promoters, the European Mail (the wharf of its due date in Melbourne) would reach Wellington on the 17th or 18th, five or six days earlier than at present, while the departure of the homeward mail would be delayed until the 19th, or five days later than at present. Hope may the dates of arrival and departure can be fixed at something like those above mentioned, so as to give an opportunity for answering letters, I have acquainted the projectors that I would recommend your voting them a subsidy of £200 a month each, way payable only on the satisfactory performance of the engagement by the respective steamers, as otherwise the great object of the subsidy—the saving a month in the course of post—would be altogether lost.

The correspondence with Mr. Morrison, and other parties in England, relative to the system of railroads, proposed by you last session, will be laid before you, even where any delay occurs, but as soon as the native title is extinguished to the remainder of the districts through which they will pass, there will be little difficulty in inducing parties to undertake their construction on something like the terms suggested.

The returns of the various District Highways Boards, showing as they do amongst other interesting facts, that some fifty-three miles of road have been formed and a considerable portion metalled during the past year, will I know be ample justification to you for my proposing to continue during the present year the grant in aid of two-thirds, and also to give special grants of the same amount as last year, to all Boards still requiring them.

Taking the ordinary expenses of Government at £16,000, you will find placed on the Estimates for Surveys, £7,000. Engineers' Department, £2,000. Under the head of Sundry Undertakings, £8,000, including £2,650 for Educational purposes and Council Library. £3,400 for Steam Subsidies. £300 for Observatory and Explorations. £300 for Ferries. £500 for Insurance, Repairs, &c. £900 for Wharf, Queen's Wharf House, and Toll Bar. Under the head of Roads, for repairs, £4,000; improving Porirua Road, £1,000; Featherston to Masterton, £1,500; Featherston to Te Kopi, £1,000; Wairarapa to Castle Point, £1,500; widening Rimutaka, £1,000; Rangitiki to Wanganui, £2,000; Grants-in-aid, £15,000. Under the head of Special Grants, to Materawa, £500; Upper Rangitiki, £500; Bruns-wick Line, £300; Kahauraponga, £300; Lower Rangitiki, £200; Pahautanui, £200; Ohariu, £300; North Makara, £200; South Makara, £100; Featherston, £200; Masterton, £300; Horokiwi, £50; Wai-nui-o-mata, £500; Belmont, £200; Warehama, £200; Western Hutt, No. 2, £300; Kai Warra, £200; Karori, £200; Upper Wellington, £1000; House to Water to Reclaimed Land, £200; Pilot's Houses, £300; Lighthouse on Point Gordon, £500; New Zealand Exhibition, £500; Additions to Gaol, Wellington, £1000; House for native chiefs, £600; Wharf at Wanganui, £1,500; Court Houses at Turakina, Rangitiki, and Manawatu, £600; Immigration (female), £4,000; lengthening southern end of outer T, in Deep Water Wharf, £2,500; Extension and adding outer Cross Head, £11,000. Purchase of Lands for public purposes, £1000. Interest on Loans, £11,250, and Appropriations under Section 1, in £1050. Making a total expenditure of £105,782.

Before going into the estimate of revenue for the current year, it will be satisfactory to you to learn that the receipts of (1864) to 1865. Under the act passed in 1864, the £ gross customs receipts amounted to £16,556, instead of £16,000. The territorial revenue, estimated at £32,000, yielded £31,985, exclusive of some arrears of rents, and though there was a deficiency of nearly £2000 in the estimated receipts from promissory notes, there was such an increase on other sources of revenue, that the total receipts for the year (including balances and premiums on sales of land, £14,900) estimated at £98,859, amounted to £98,542. And while the minimum premium at which the loan of £25,000 was to be parted with, was fixed by the Government at 10 per cent., the whole was sold at a premium of 11 1/2 per cent., the tenders for it amounting to £92,060, and the nett proceeds to £27,650. And further, if you will examine the accounts both of the past and previous years, you will perceive this gratifying fact, that the ordinary revenue has ever been not only sufficient to meet the ordinary expenses of Government, and the interest on the loans, but that there has always been a very large surplus of it available, together with the whole of the territorial revenue, for public works. I need scarcely say to you, that as long as we maintain this position, our finances must be regarded as being in a highly satisfactory and prosperous condition.

The ways and means of meeting the expenditure I have proposed these are:—Balances in hands of Provincial Treasurer, on the 1st of April last, £17,188; in London, £840; interest from Hawke's Bay, £2,500; refund of cost of lighthouse, £7,000—of advance to the Commissioners of City Reserves, £430; and I estimate the three-eighths Customs, £20,000; licenses, £2,100; pilotage, £750; assessments, £700; hospital, £150; incidental receipts, £1,500; toll bar, £1,500; wharfage and warehouse, £1,500; rates on land, £5,000; proceeds of reclaimed land, £7,000; promissory notes, £1,200; territorial receipts, £36,000—giving a total income for this year of £105,358.