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Sea at a considerable cost out of provincial funds. There is no reason therefore to urge why the colony should be released from payment to the province. The General Government has been asked to pay this amount; but although it has not yet done so, I do not anticipate that it will dispute the justice of the claim. The amount £6255, under the Wellington Debts Act, is for arrears of survey; the detailed appropriation of which remains in your hands. I observe generally with regard to the estimates of income which I now submit to you that although I anticipate that they will be realized, yet that I think the total has been extended to a full margin; unless some windfall of land revenue should drop in, which indeed is far from impossible.

If now we study this estimate of provincial income, we shall perceive noticeable features, which present some unsatisfactory and some very encouraging characteristics. If we contrast the amount receivable this year by the province of Wellington as its nett share out of general revenue available for provincial appropriation, viz, £5941 9s 6d with the acreage amount receivable under the same head for the last fifteen years, viz, £9878 (Appendix K), we shall at once perceive how small a proportion this year’s estimate of receipts (Appendix L), under that head, bear to those of past years. We shall also perceive that the provincial income from this source has been vanishing in a rapidly decreasing ratio. If you turn to the Constitution Act you will wonder how such a result could have been brought about; and you will naturally ask whether it has arisen from a diminution of general taxation? Your own experience as tax-payers will furnish you with an appropriate answer. You will next enquire whether the money has been required by the Colonial Government for the purpose of public works? You will probably conclude that, until lately, scarce any public works have been executed by it. Still, the fact will remain that the provinces have had their share of the revenue reduced down to the lowest point. It has been a game at "peep-core" between the big and little boy, of which the finale may be easily anticipated, unless the master intervenes.

It is encouraging, however, to observe that notwithstanding this diminution of income from resources recognised by the constitution, the amount of your direct taxation (a wholesome mark of self-reliance) has increased sufficiently to enable you to meet your moderate expenditure. Another encouraging circumstance is that out of the total amount estimated as available this year for your appropriation, only £6255 is accruing from loan; and that even that amount has been raised for the purposes of meeting obligations, dating back from the earliest days of the colony, long before you had your provincial institutions; and therefore obligations with which you ought justly never to have been burdened. All the rest of your estimated year’s income arises from regular income sources. When I inform you that the average amount out of loans for the last fifteen years, which has annually formed part of the estimated amount available for appropriation, amounted to £15,663 14s (Appendix M), i.e, two and a-half times the amount which appears on the estimates of this year, you will agree with me that it is a very encouraging circumstance as showing that we are able successfully to live within our means.

But I would further observe that the evidences of a system of self-reliance and of a system of self-supporting institutions which this province has had the courage to adopt are not only visible in these estimates of income, but are also to be found elsewhere as the result of your last year’s legislation. By it you authorised the raising of large annual amounts for the purposes of educating your children and constructing and maintaining your district roads. Although, however, those amounts do not appear in these estimates, because they are not subject to your appropriation, but are at the disposal of the localities which raise them, they are nevertheless important elements of consideration in taking a survey of your provincial finance.

The total outlay for the year I estimate at £75,504 18s 2d. In addition to this I shall ask you for a contingent vote for public works and undertakings to the amount of £15,000. As it is very difficult to form a correct estimate of our land revenue, I have thought it prudent to ask you for this contingent vote, in the event of my estimate of land being exceeded. I do not wish you to infer that I think it probable, at the same time I am of opinion that it is not so highly improbable as to justify me in omitting to take the circumstance into consideration.

The outlay may be thus classified, viz:-

1. Executive ........................... £2250 0 0

2. Legislative .......................... £825 0 0

3. Judicial and police .................. £7050 19 6

4. Charitable ........................... £4036 10 0

5. Education ............................ £2980 0 0

6. Harbors .............................. £2892 7 6

7. Special .............................. £2424 15 0

8. Miscellaneous ........................ £1949 10 0

9. Public works and undertakings—
   Native land purchases ................ £550 0 0
   Survey and land Departments .......... £13,715 0 0
   Engineers ............................ £768 8 0
   Sundry undertakings .................. £14,453 8 2
   Roads ................................ £12,640 0 0
   Bridges .............................. £7969 0 0
   Contingencies for public works ........ £1000 0 0

   Total ................................ £51,095 16 2

   Contingent vote for public works and undertakings £15,000 0 0

   Total outlay ........................ £75,504 18 2