57

take this opportunity of stating that the policy of the Provincial Government is to divest itself, as fitting opportunities occur, of mere local powers; to decentralise, in fact, administration so far as practicable. So far therefore is the Provincial Government from regarding with jealousy any desire which may be evinced for the attainment of local power, that it conceives that it best discharges the important functions entrusted to it, by endeavouring to open up and colonise the unsettled parts of the province; and, as centres of population become sufficiently strong to enable them efficiently to discharge the duties of local management, by encouraging them to accept a transfer of local power, whilst the province only retains a general administrative and legislative control.

With reference to the Reclaimed Land Act I have only this remark to make, viz., that unless I had understood that I should receive authority to dispose of the parcel of land referred to in this Act, I should not have felt justified in incurring so large an expenditure (to which indeed I consented with some reluctance) on the Provincial Buildings now in progress in the City of Wellington; and I ask you to bear in mind, that according to the present proposals as shown in the estimates of expenditure for the current year, a very large sum of money is to be spent within the precincts and for the advantage of the City of Wellington.

With reference to the Amendment of Toll Gates Act, I wish to draw the attention of the Council to two important provisions. First, it is proposed that all Government officers, including the Superintendent, should pay toll equally with other persons. The only exemption is in the case of His Excellency the Governor and his personal suite. It is also proposed to set aside twenty per cent. of the tolls as a special fund, whereout to provide for maintenance and casualties. I believe that these proposals are alike equitable and prudent, and as such will commend themselves to the Council.

The Benevolent Institution Incorporation Act is, I think, a step in the right direction. In dealing with charitable relief in a new country like this, the problem is very different from that which pauperism presents in elder and more populous countries. There the lack of work is a great cause of destitution; but with us, by far the largest proportion is due to infirmities and natural calamities. At the same time, I have reason to believe that desertion supplies us with more cases of destitution than it ought; and that the sense of moral obligation to support relatives is weaker than it ought to be. The establishment of orphanages and infirmaries and the discriminating benevolence of institutions such as it is sought to incorporate by this act, are the means which, in my opinion, are amongst the most suitable to the kind of destitution existing in a new country like ours.

Although the legislative measures to which I have thus briefly referred, and which will be immediately introduced for your consideration, cannot perhaps be classed as of the highest importance; yet I believe they will on the whole be found to be useful practical measures, suited to our circumstances.

I now invite your attention to the subject of your finances. Whereas you began last year in debt to your bankers to the amount of £10,000, I am happy to be able to inform you that the available balance to your credit at the commencement of the present year (1st April) was £7383 8s 4d. I may here add that all payments have been punctually made at the time they were due during the past year. Including the balance I have just mentioned, I estimate the total income for the year ending 31st March, 1873 at £75,151 17s 10d.

This total is thus made up, viz.:

• Balance at Bank of New Zealand | 1383 | 8 | 4 |
• Lodged with Mutual Investment Society | 6000 | 0 | 0 |
  | | £7383 | 8 | 4 |

I think it right to remark that whilst I have placed the land sales at £28,000, the estimate of the Commissioner of Crown Lands is only £24,000. The item £5022 for site of Custom House refers to the Custom House, &c., at Wellington. The site for these buildings is not a site of an ordinary kind, already made by nature; but was reclaimed from the