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passed a Public Health Bill for the Colony. But when I remind you that the Road Boards were thereby constituted local boards of health, you will not be surprised to learn that the members of the Road Board, within whose limits Kaiwarra-warra is situated, declined to act. They had as much to do as they could manage, to look after the business for which they were specially elected; and even if they were fitted for the discharge of the duties of a Board of Health, and had had the time, it is scarcely to be expected that the owners of property at Pahautanui or the Upper Hutt could fairly be taxed for the purpose of cleansing a distant hamlet like Kaiwarra-warra.

The bill to authorise a loan of two hundred and ten thousand pounds will probably be regarded as the most important of the measures submitted to your consideration. The details of the works proposed and the relative bearing of those works as they affect different portions of the province, will be better explained to you by the Provincial Secretary, to whom indeed is chiefly due the preparation of this measure. I wish however to point out to you, that the Provincial Council is not in a position to pass a loan bill; it can only proceed by way of resolution in favor of a bill. The bill itself must afterwards pass through the ordeal of the General Assembly. Now provincial bills frequently encounter many dangers in their passage through Parliament; and should it be your desire that a bill of the kind should pass, I would venture to suggest the wisdom of presenting as few points of attack as possible. If the members for the province in the Provincial Council cannot agree amongst themselves with tolerable unanimity, as to the allocation of the works; opposition in the Assembly cannot but be strengthened and encouraged by such a course.

It is proposed in this bill that the province should give a special security in land. I need not detain you by attempting to show that the security offered is ample; because you are well acquainted with the character and value of the land in question, and are fully aware of your own knowledge that the security is sufficient. But I shall be prepared in my place in the Assembly to satisfy those who come from other Provinces of the ample nature of the security. I shall also, at the same time, be prepared to show that the Province may reasonably be expected to be able to provide annually for the interest and sinking fund. The Assembly will have a right to be satisfied on these two points before granting its assent to a loan; but, if they can be established, I see no reason why the wishes of the Province, if expressed with sufficient unanimity, should not be acceded to by the Assembly.

I now refer to the estimates of income and outlay for the financial year ending 31st March, 1874. The estimates of income, including the balance to credit on the 1st instant, I place at £85,942, which is thus made up, viz.:

You will perceive that the estimate of ordinary revenue is placed at nearly the same amount as that of last year, if receipts from capitation be eliminated. The territorial income, which was estimated last year at £23,000, actually amounted to £26,748 14s 9d. It is estimated this year to amount to a much larger sum, viz., £45,000; and, inasmuch as a very considerable sum has already been received during the present financial year, there is little doubt that the estimated sum will be realized. I may here state that during the past financial year the Provincial Treasury has at no time had an overdrawn account.

The proposed expenditure may be thus stated, viz.:—For the ordinary departments of the Provincial service, £24,853 10s 8d, as against £24,194 2s for last year, being a proposed increase of £159 8s 8d. For public works and undertakings, £54,968 7s 3d, as against £48,520 16s 2d. That is, it is proposed to expend this year £6,400 more than last.