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1. A Bill intituled "An Act to further amend the Highways Act, 1871."

2. A Bill intituled "An Act to further amend the Wellington Education Act, 1871."

3. A Bill intituled "An Act to amend and consolidate the law of Cattle Trespass and Impounding in the Province of Wellington."

4. A Bill intituled "An Act to empower the Superintendent of the Province of Wellington to stop up certain Roads and to dispose of the lands over which such roads passed."

5. A Bill intituled "An Act to regulate the Management of houses held by persons licensed to sell Alcoholic Liquors."

6. A Bill intituled "An Act to confirm the sale of a piece of land called the Waihenga Ferry Reserve, in the District of Wairarapa."

With regard to No. 1, I may observe that the Bill has been drafted so as to carry out the recommendations of a Report of a Select Committee of the Council, with certain exceptions, which have been explained in a circular of the Provincial Secretary. No. 2 is also framed so as, in the main, to meet the views embodied in a Report of a Select Committee. Nos. 3 and 4 are consolidating Acts, and No. 5 is intended to meet a practical difficulty which, as the law stands at present, prevents the sale of the lands along which disused roads passed.

The Estimates will be laid before you without delay. I calculate the ordinary income at £31,800, and the territorial at £75,000. I hope I am not too sanguine in these expectations. The past year’s experience appears to justify the calculations; at the same time, it must be admitted that the flow of land revenue is often irregular. Those items, added to certain refunds and other receipts, make the estimated amount of revenue for the year reach the sum of £122,624 19s. 10d.

With regard to the proposed expenditure, you will find a slight increase under the heads "Executive" and "Legislative." An advance is proposed in the salary of the Assistant Treasurer, who has proved himself a highly valuable officer. Under "Judicial" and "Police," increases will be found, chiefly caused by the increase of wages. It is proposed to continue for another year the vote of £300 in aid of the Wanganui Hospital. I draw your attention to three new items introduced into the present Estimates, in the direction of Grants-in-Aid, viz.:—

Education Board ... £3,000

Local Boards ... 1,200

Highway Boards ... 5,000

Making a total of £9,200 as Grants-in-Aid, and I recommend them to your favourable consideration. £2,000 is proposed for repairs to the Wellington Gaol; and it is probable that a considerable sum will be required hereafter. The total proposed for roads is £41,836, and for bridges £9,350. Grouped together the proposed Departmental expenditure amounts to £38,455 5s., and the expenditure for Public Works and Undertakings to £100,849 11s. 10d.

If the estimated income (£122,726 18s. 9d.) be contrasted with the estimated expenditure (£139,304 16s. 10d.), there appears to be a considerable deficiency to be provided for. On this point I offer the following explanations. In the estimates of expenditure, p. 10, there are items to the amount of £3,000 for rewards for discovery of gold fields, &c. I hope these rewards may be claimed; if they should, the stimulus thereby imparted to the Province will extend to and increase the revenue; if they should not, the £3,000 will be liberated to assist in meeting the deficiency referred to. I have already referred to the unadjusted Manawatu-Rangitikei claim, and I think the Province may certainly expect receipts on that head to come into this year. I have not placed a sum in my estimate of income under this item, because it would be indecent for a claimant to name the particular sum he expected to be awarded on an arbitration, whilst the award was yet undisclosed by the referee.

Again, in the last Session of Parliament a promise was made that the proceeds of the confiscated lands sold within the Province should be handed over to the Provincial Treasury, subject to certain proportionate payments to reimburse the Confiscated Land Fund Account, which was under advance from other funds. Considering that the Colony has realised £21,857 19s. 6d. from the sale of confiscated land within this Province from February, 1873, to 12th March, 1874.