PROVINCIAL COUNCIL.

Lyttelton Times, Volume XXXIV, Issue 3059, 31 October 1870, Page 3 (Supplement)

PROVINCIAL COUNCIL.

Friday, Seft. 30. The first session of the newly elected Provincial Council was opened at two p.m. The Speaker’s gallery was occupied by a number of ladies and gentlemen, and the Strangers’ gallery had also a large number of occupants. The attendance of members was very large, the following being present:—Messrs Beswick, Brett, Brown, Buchanan, Cowlishaw, Cox, Delamain, Dixon, Enys, Hawkes, Hornbrook, Jollie, Kennaway, Knight, Lee, Mallock, Maskell, Matson, Parker, Rhodes, Richardson, Sawtell, Studholme, Tanered, Toss will, Walker, Webb, J. S. Williams, and Wynn Williams. Mr Jollie having moved that the Clerk do take the chair, said that the first business of the Council was the election of a Speaker. He was happy to inform the Council that the late Speaker, Mr H. J. Tanered, had consented to accept the office, should the Council desire it. He had great pleasure in proposing that gentleman as Speaker of the House, and in doing so he must express in warm terms his appreciation of the manner in which he had always discharged the duties of the office. Mr B. H. Rhodes briefly seconded the proposition, which was carried on the voices. Mr Jollie pointed out that by the Constitution Act it was necessary that the Council should appoint a deputation to wait on his Honor the Superintendent and procure bis consent. The mover and seconder of the resolution being appointed a deputation for this purpose withdrew, and shortly returned with a message to the effect that the Superintendent had much pleasure in confirming the election of H. J. Tanered. Esq., as Speaker of the Provincial Council. The Speaker then took the chair, and in doing so begged to express his thanks for the confidence reposed in him, as shown by his re-election to the honourable office of Speaker. His Honor the Superintendent was then announced, and entered the Chamber, attended by Messrs Jollie, Rhodes, W. Williams, and Hornbrook, members of his Executive. His Honor was received in the customary manner. Having desired the members to be seated, he read the following speech : Mb Speaker and Gentlemen, — “ Circumstances render the opening of this, the first session of the newly-elected Council, one of peculiar interest to the province.

“ The legislation which has recently taken place in the General Assembly of the colony will largely concern the future interests of the province and the colony, and affect your deliberations to a greater extent than on any previous occasion. “ I propose to indicate generally the principal points in which the position of the province will be affected by the measures which have been adopted by the General Assembly, and in respect of' which action will be required by you during your present session. “ Under the ‘ Payments to Provinces Act, 1870,’ the amount payable to the province out of the Consolidated Fund during the current year will exceed by £25,000 the amount which would have been received under the financial arrangements previously in force in the colony, and of this sum £BOOO is set apart under the provisions of the Act for division among the Road Boar 1s in accordance with a scheme to be proposed by the Superintendent, and approved by the Governor in Council. You will be asked to affirm, by resolution, the manner of distribution which you may consider the most equitable to the several districts of the province. . . “ Under the 'lmmigration and Public Works Act, 1870,’ your opinion will be sought ns to the railways which ought to be constructed within the province under the powers conferred by the Act, in order that resolutions on this subject may be forwarded for the consideration of the General Assembly in its next session. “ The same Act contemplates that the introduction of immigrants into the province should be conducted by the General Government on the request of the Superintendent, and in such numbers as may be recommended, and provides that regulations for the conduct of immigration and for the nomination of immigrants by persons resident in the province should be made by the Governor at the request of the Superintendent.' I shall take

occasion to obtain an indication of your opinions on this subject. “ Under the ‘ Railways Act, 1870,’ authority has already been given for the construction of portions of the Great Northern and Great Southern lines of Railway, and for the portion of the Southern Trunk line between Tiraaru and Terauka, but the outbreak of war in Europe is likely temporarily to postpone the execution, by the colony, of these works. From correspondence that will be laid before you, you will learn that I have requested the Colonial Government to give me an assurance that such liabilities ns may be incurred by the province in the execution of those works will be adopted on certain conditions by the colony. The reply of the Colonial Treasurer is such as warrants the belief that the colony will reimburse the province for any expenditure it may incur for this purpose within the limits prescribed by the Railways Act. “ You will no doubt agree with me that no time should now be lost in pressing on the works on the Northern Railway, as previously authorised by you. Tenders have already been accepted for the formation of the line as far as Papanui, and orders have been sent to England for rails, and for the ironwork of the bridges. “ I have every confidence that the initiation of this, and other works, together with the introduction of population which is now taking place, will have a most beneficial effect in reviving the commercial prosperity of the province. “ It is a matter for congratulation that at a time like the present, when great difficulty is likely to prevail elsewhere in obtaining money on reasonable terms, the province is able to proceed with the work of colonisation. “ Should the General Government, during the current year be, in a position to recoup the expenditure which the province may incur upon the Northern Railway, you will be asked to authorise the more speedy construction of the larger harbour works In Lyttelton which will be necessary to meet the increased traffic upon the railways. I regret that the uncertainty which of necessity prevails as to the time which the initiation of the plans of the Government will take place, prevents me recommending, as I should have wished, the immediate diversion of funds for these larger works ; but, under any circumstances, I think that an immediate outlay should be incurred to meet the requirements of the shipping during the ensuing wool and grain season. “ You will be asked to make such provision as will secure the continuace of immigration in the event of the General Government taking no action in this direction, and I feel no doubt that all future engagements, if not those for which liabilities are already incurred, will, if the province desire it, be brought under the terms of the ‘lmmigration and Public Works Act.’ “ Careful Estimates of Revenue and Expenditure for the ensuing year will be placed before you in the course of a few days. In the meantime, it will be satisfactory to you to know that the Ordinary Revenue for the past year has exceeded the amount which it was estimated to reach, by a sum of about £BOOO, and the Land Revenue for the same period has exceeded the estimated revenue by about £IB9B. During the current year the province will receive, as I have already pointed out, a considerable accession to its Ordinary Revenue, and there is every reason to believe that the proceeds of land sales may increase, having in view the price which will probably be obtained in England for the shipments of last year’s grain, and the'facilities of access to land, hitherto unsold, which will be afforded in the bridging of rivers and extension of railways during the current year. “ A sum of about £20,000 may be anticipated from the released sinking funds. Correspondence on this subject will be laid before you. “ The principal change in the form of the estimates, as they will be submitted to you, is that it is proposed that provisions for (he current expenditure on education should be made out of the ordinary revenue, instead of out of land revenue. “You will be asked to make more liberal provision than heretofore under this head, principally in the direction of offering larger salaries to the teachers of schools, who have hitherto in many cases received most inadequate remuneration for tneir services. “ You will also be requested to consider the advisableness of vesting the management of the Educational Reserves in a body of Trustees. “ The bridge over the Rakaia has been rapidly progressing during the past year, and the province may well congratulate itself on the success which has so far attended the attempt to bridge one of its dangerous rivers by a simple and comparatively cheap structure. “ The prevalent opinion that the course of the river would be injuriously affected by the piles on which the bridge is to be erected, and that it is necessary to maintain a great width of span between the piers has not proved to be well grounded, and I am of opinion that if arrangements can be made with the contractor it is desirable to lessen the width of each span by the insertion of another pier, and so to strengthen the bridge that it will be available for railway traffic. “ You will be asked to consent to the bridging of the River Ashburton with a light bridge, and this, with the bridges over the Rangitata and Waitaki rivers, the former of which is authorised and contracted fcr, and the latter sanctioned by an Act of the Assembly, will complete the most important links of communication between the different parts of this province and that of Otago. “ You will also be asked to sanction the erection of a bridge over the S;-lwyn on the main line of road which passes through the Ellesmere district. “ During the past year the main road to the Peninsula, by way of Little River, has been formed for some distance, and you will be asked to supplement the provision that has been already made for the purpose by a further grant. « a new line of road has also been laid out from Piseon Bay to Akaroa, and is now in course of formation. “ The General Government has consented to establish a District Court, which shall hold periodical sessions in, Timaru, and thus supply what has been a great want to the inhabitants of that district. “ I have directed various papers to be laid on the table, selected from those Which have been presented to the General Assembly. I would especially call your attention to the report of a Joint Committee of both Houses, with evidence taken on the subject of colonial industries.' “ The Colonial Government has, at my instance, requested Dr Haast, through the Colonial Geologist, to make a complete and detailed geological survey of the Malyern Hills, with the view of obtaining further information as to the extent and value of the coalfields in that district. “ You will be asked to give assistance to the Association which is prosecuting investigations as to the best method of producing a lucrative article of export from the native flax.

“ The establishment of manufactories for the preservation of meat has already had a marked effect on the prospects of the grazing and pastoral interests, by providing a certain market for surplus stock, and the facilities which have been afforded for the storage and prompt shipment of grain in the Port of Lyttelton have bad a most beneficial effect in bringing into favourable notice the grainproducing powers of the province. “ The Museum building, the erection of which the Council sanctioned at my request in the year 1868, is this day open for your inspection for the first time. I trust that a further effort will now be made to build a Laboratory in connection with the Museum, and to afford encouragement by lectures of a practical character to the pursuit of science. “ I here take occasion to express ray high sense of the indefatigable zeal and industry of Dr Haast, through whose exertions the province has become possessed of collections of such high value, and of an institution which will, I trust, annually possess larger attractions, and become of greater importance in relation to the education of the country and the development of its material resources. « A full report on |;be working of the railways will be laid before you as soon as the year’s accounts are completed.

“The manner in which the traffic and management of the line has been conducted reflects great credit on the general manager and those employed under him. “ I may state, in anticipation of the report which will be presented to you, that the actual revenue for the year ending September 30 has amounted to £53,000, or about £4OOO in excess of the estimated revenue for that period. “ The working expenses for the year have amounted to about 58 per cent upon the gross receipts, a result which, as compared with that on other lines of railway, must be deemed satisfactory. The total outlay on what may be termed the capital account of the railways amounts to £611,360, and the nett profit on the current year's working, after deducting working expenses and maintenance, as well as a contribution of 6 per cent on the gross receipts to the Renewal Fund, is £19,243, or a little more than 3 per cent on the total capital expended. “ These results not only justify the anticipations of those who initiated the railway system of the province, but they are sufficient indications of the further advantages which may be gained by the extension of those lines. “ In these railways the people of this province have a property of their own creation, which, if prudently managed, would of itself be sufficient security to continue and maintain a system of railway communication throughout the province. “ Gentlemen, in entering upon a fresh term of office, I may be permitted to express my hope and confidence that the action of the Government of this province, guided by your counsel, may tend to the advancement of its best interests, in no less a degree than has been the case under my predecessors. “ Our prosperity in the future may depend largely upon the action of another Legislature, but your deliberations, though they cannot control, may materially promote and assist the welfare of the province and the colony. “ I now declare this Council open for the dispatch of public business.” His Honor then withdrew. Wednesday, Oct, 12. THE FINANCIAL STATEMENT. Mr Jollie, in moving that the House do go into Committee for the purpose of considering the estimates for the year ending 30th Sept. 1871, said—Sir,—The late period at which the General Assembly of the colony met, and the long session consequent upon the many important measures which were brought forward, has been the cause of this session of the Provincial Council meeting at a later date than was anticipated. This, however, though in some respects to be regretted, will enable me to place before the Council a fuller and much more reliable statement in regard to the finances of the province than had the session been earlier, and a part of the past year’s accounts been merely estimated. It will, no doubt, be gratifying to the Council to learn that the accounts of the Provincial Treasury were placed before the auditor within two days of the termination of the financial year, as it affords a sufficiently convincing proof that one of the most important departments of the Government is very efficiently managed, and it enables me at this time to place before yon a comparison between the estimated and actual receipts and expenditure for the past year:— Receipts, 1869-70. SCHEDULE A.

It will probably be in the recollection of most hon, members that during the debate last year on the financial proposals of the Government, very great doubts were expressed as to the truth of the calculations which had guided the Government in placing on the estimates for appropriation the large balance in hand which appeared on the estimates for ordinary receipts, Schedule A. It was shown that the sum standing at the credit of this account, after withdrawing the amounts appropriated to railway extensions, would be about £21,000, and that this sum would be required, and would be sufficient to meet payments up to the 30th of the ensuing. April, and to leave at that date in hand about from £6OOO to £7OOO to pay the April liabilities. The treasury accounts show that on the 30th of last April there was actually in hand the sum of £8368 13s sd. It will be observed that the estimates now submitted propose that at the end of the current year, that is 30th September, 1871, there shall be £21,547 12s in hand. The necessity for having this sum in hand at that date arises from the fact that the bulk of the revenue is received in the months of May and June of eadh year, while the expenditure is constant. The current income per month from August to the succeeding April is less than the current expenditure. If the financial year ended on the 30th April instead of the 30th September, it would not be necessary to

have on the 30th April a larger sum than might be sufficient to over the April liabilities, which in tne ordinary course of business would be paid in the first week of May ; but the year, ending as it now does on the 30th September, ic becomes necessary that there should be in hand at that date a sum sufficient to cover the excess of current expenditure above current income for the period between the 30th September and the end of the ensuing April. The amount required for this purpose is, as I have already shown by a reference to the proceedings of the year now ended, about £21,000, I will now direct the attention of the Council to the estimated receipts under Schedule A for the twelvemonths ending September 30, 1871. The balance in hand on the 30th September, 1870, is £32,540 11s lOd, the estimated balance having been £21,156 lls Id, thus leaving the sum of £11,384 Os 9d in excess of the estimate. The next item of available assets is consolidated revenue, £BO,OOO, this amount is about £17,000 in excess of the sum credited to the province last year, this increase is owing to the new system of finance introduced into the_ colony by the colonial Government, by which the consolidated revenue paid to each province is estimated at the rate of £2 a head and for this year the population of Canterbury is taken at 40,000. Under this new arrangement Canterbury will obtain her fair and proper share of the revenues collected by the customs department, upon goods consumed by the inhabitants of the province, and the great uncertainty which has hung over our receipts, under the late system, will now be in a great measure done away with. At the same time, so long as the accounts between the General and Provincial Governments are liable to be disarranged by unexpected claims to large amounts for past expenditure on behalf of the province, it is impossible to feel that certainty in regard to our available funds which we have a right to claim in our financial arrangement with the colony. From this £BO,OOO must be deducted the sum of £35,000 provincial charges, which is the amount—as near as we can ascertain it—which will he spent in the province, under the authority of the Colonial Appropriation Act, 1871,thus leaving available,as provincial revenue, about £45,000; the first charge upon which is the interest on consolidated oan by the Colonial Treasurer about £34,000. The estimated receipts for pasturage rents we have put down at £34,600 ; this is based on the amount received last year, as are also the sums which we expect to receive from publicans’ licenses, auctioneers’ licenses, stage carriage licenses, boatmen’s licenses, lunatic asylum, hospitals, rents, sheep tax, dog fees, maintenance of debtors, and harbours. The item £ISOO, the payment by Waimakariri Conservators,is a debt due the province on account of protective works erected by and at the cost of the Provincial Government between the Ist day of September, 1868, and the commencement of the Canterbury Rivers Act, 1868. This amount has been demanded by the Provincial Government, but at the request of the Chairman of the Board of Conservators the Government allowed the payment to be deferred until this Council had met. The next item, profit on railways, £13,000, this amount must be taken subject to revision when the railway estimates for the current year, which are in course of preparation, shall have been completed. In the meantime, I may state as a very gratifying fact that the receipts from traffic on the Lyttelton and Christchurch line were, for the year ending 30th September, 1868, £23,564; 1869, £30,569; and 1870, £36,358. And on the South line for the same year respectively, £9523, £12,598, and £16,709. The interest on bank deposits is estimated to amount to £1500; the reserves at Little River to be sold, £750, will only be expended, if received, and the same amount appears on the other side ; lighterage and cartage, £7OOO, will he received and paid out again, it therefore, also appears on both sides. The last item of receipts is rents for educational reserves £IOOO, this, with the other sources of income which I have named makes the total estimated receipts, including balance in hand, amount to the sum of £151,246 lls lOd, against a proposed expenditure of £129,698 19s lOd, thus leaving a balance in the Treasury on the 30th September, 1871, of £21,547 I2s, to meet the excess of expenditure over income during the seven months which will elapse before the pasturage rents are paid. I will now direct the attention of the Council to the proposed expenditure under Schedule A. The permanent charges amount to £43,107, made up by interest on unconverted debentures £6648, sinking fund on the railway loan and Canterbury loan £1952 ; interest paid by colonial treasury on consolidated loans £34,107, and the Cass pension, £4OO. In Class ll.—Executive, there is a decrease of £2O as compared with last year’s vote. In Class lll.—Electoral, xSO increase. Class IV.—Legislative is the same as last year. Class V.—Justice is nearly £I4OO more than was voted last year, nearly the whole of the increase being in the police department, Class Vl.—Charitable Aid is £IOSO less than last year’s vote, but this is only an apparent decrease, as this vote last year bad to bear the expense of providing for the orphans, for which separate provision is now made under Class VIII. of £2053. Class VII. —Hospitals, £4295 ss, is less by £142, although the sum asked for the Timaru Hospital is £165 more. This decrease is caused by our not having to, provide a separate establishment in Lyttelton The Council will, I am sure, agree with me when I say that the thanks of the [province are due to the medical officers of the Christchurch Hospital for the care and attention which they show to patients on all occasions, and the ability shown in the performance of their onerous duties. Class IX. —Lunatic Asylum is less this year by £294 lls Bd, the decrease being in rations. Class X.—lnspection of Sheep, £IB3O, has no change. Class XL—-Harbour, £2957 2s 6d, is an increase of £4BO caused by works required at the Saltwater Creek, and £SO each at Sumner and Kaiapoi for maintenance of boats, signals, and stakes. Class Xll.—Museum, £950, is an increase of £3OO. Of this, £IOO is an addition to the salary of the director, and £2OO in excess of last year’s vote for fittings, &c. Class XIII. —Departmental Miscellaneous, £3865, is a higher amount than last year by £SBO. This is in consequence of including in this class what was not in it last year—Steward of Reserves, £2OO ; and Inspection of Weights and Measures, £3OO. Class XlV,—Public Works Department, £1925 ; there is an increase here of £25 to the salary of the clerk, and £SO in contingencies. Class XV.—Provincial Government Works, £3032, provides for keeping in repair the West Coast Koad, and the other roads, bridges, and buildings which the Government has charge of, and for clearing the Avon where it runs through the Park and for a short distance below Christchurch. Class XVl.—Public Plantations, £733 4s 6d, is the same as last year. Class XVll.—General Miscellaneous, £2480, is £1741 5s less than last year, caused by the Kailway Renewal Fund not being included in this class this year. Class XVlll.—Education, Salaries, &c., £10,625; this is an increase upon tlie vote of last year of £3825, the chief item of increase being in the maintenance of ordinary schools, which is estimated to cost £BBOO, or £3650 in excess of last year’s vote. The expenditure under this head has heretofore been included inschedole B, not because the land revenue was considered the proper source from whence to draw the ordinary expenses of the department, but because the ordinary revenue would not supply the expenditure without leaving unprovided for those departments of Government which are absolutely required for our protection and well-being. We have to thank the Colonial Treasurer for having introduced such a change in the finance of the colony as enables us to charge the ordinary revenue with the ordinary expenditure on education. Class XVlll.—General Contingencies, £2000: this amount is the same as last year. The next estimate under this schedule is. Special, £11,419 3s 9d ; which includes Little River Koad, contingent on sales of reserves, £750 ; lighterage and cartage, £7OOO ; railway renewal fund, 5 per cent on earnings, 1870, £2650 -, and Bank of New Zealand interest, £lOl9 3s 9d. In reference to this last item, I would remark that it is a charge made by the Bank in 1868, and disputed by the Government. The next' item for which I shall

ask a Tutii i< outstanding liabilities, £13,391 14s Id. stated to ba due to the colonial treasury forinterestsaid tohavebeenshortcharged in 1868-69, and liabilities to 30th June, 1870. I will now direct the attention of the Council to Schedule B, Estimated Receipts, The balance in hand is £4944 19s Id. The land revenue receipts are estimated at £32,500 on the sale of 17,500 acres at £2 an acre, £2500 received for the sale of this land is estimated as paid direct to the district south of the Hangitata, and therefore does not appearhere as a receipt by the Provincial Treasury; £SOO is the amount put do wn as contributions for school buildings ; £4OOO as receipts from immigrants ; and £IO,OOO released sinking fund, which we expect to receive from the trustees in whom the sinking funds of the various provincial loans is now vested, makes a total of £51,944 19s Id as the amount which this Council will be asked to appropriate under this schedule. But before I proceed to exnlain how the Government propose to appropriate this amount, I may state that during the current year we have every reason to believe that we shall receive from the trustees the sum of £ -0 000 accrued sinking fund, after paying the amount due to Westland on the basis of the arbitration award, £IO,OOO of this we have placed on this schedule of the estimates to defray a portion of the expenditure now being incurred on account of immigration, and £IO,OOO has-been placed in Schedule C for railways, bridges, &c. Our reason for thus appropriating this fund is, that we think that the released sinking fund should be regarded in the same light as borrowed money which ought to be expended in reproductive investments. The proposed expenditure under Schedule B, is Waste Lands’ Board, £SOO ; Surveys, £6790, which is tbe same as last year’s vote ; Immigration, £13,365, of this sum £IO,OOO is to meet the expenses in England ; and £3365 for local expenses, as shown in detail under Class 111. It may be objected to this amount appearing on the estimates, that the General Legislature of the colony has in the Immigration and Public Works Act passed last session—made provision for immigration to the provinces being conducted and paid for out of general funds, but I would remind the Council that the sum on the estimates is for the purpose of meeting engagements entered into by the Provincial Government, prior to the passiug of the said Act, and the General Government may reasonably refuse to be answerable for the liabilities of the past year, which will fall in for payment daring the present year. Until the course which will be taken by the General Government in regard to immigration is ascertained, the Immigraticn Agent in London has been instructed to continue to correspond with intending immigrants with a view to their dispatch by ships to arrive here next spring. I take this opportunity of stating a few facts in regard to immigration, which will be,, no doubt, interesting to the Council. The number of ships bringing Government immigrants during the past year has been four, bringing 542 adults, the whole of whom, with the exception of a few families, met with ready employment immediately on arrival, at fair rates of wages. From returns laid on the table, it will be seen that since 1855 there have been introduced into the province 2896 families, representing 7839 statute adults, 3336 single men, and 3854 singly women, making a total of 15,029 statute adults, being at the rate of about 1000 per annum. The total amount paid for passage money was £220,254, being at the rate of £l4 I3s a head; but of this amount £76,365; or more than one-third, was contributed by their friends. About one-tenth of the total cost was provided for by bills drawn, accepted, and payable in the province, and, with very few exceptions, these bills have been paid in full. The amount for which promissory notes were given by immigrants before leaving Eng? land was £50,743. Of this sum £24,062 has been collected, and £4777 marked off as bad, leaving a balance to be collected of £21,904. The present cost to the province of the immigrants brought out by the Provincial Government is £99,393; being at the rate of £6 lls 8d per statute adult. On the whole, I think the Council will agree with me that tbe province has reason to be satisfied with the conduct of immigration both in England and here. The next item of expenditure under Schedule B is Buildings and Works, Class IV, £20,990. This large proposed expenditure is, as will be seen on reference to the several items, chiefly for buildings, bridges, and other works, which for the last few years have been urgently required, but which the Government has not heretofore proposed to construct, as other pressing works sanctioned by this Council have absorbed all available funds. The next class. Road Boards, £8125, is 25 per cent, on the estimated land sales. This amount it is proposed to distribute among tbe several Road Boards in such a manner as may be approved by this Council. The sum of £BOOO voted by the General Assembly under the Payment to Provinces Act, 1870, is also to be divided among the Road Boards of this province, in accordance with a scheme to be proposed by the Superintendent and approved by the Governor in Council, .the scheme of distribution when prepared by his Honor will be submitted to this Council for its opinion upon it, Tbe total proposed expenditure under Schedule B is thus £49,770 Os Id, leaving a balance in hand on tbe 30th September, 1871, of £2174 19s Id to meet payments which may be due. I now come to Schedule C—Estimated Receipts.—The sum in hand on the 30th September, 1870, was £69,484 10s 8d ; this, with £IO,OOO, which is a moiety of tbe amount which we anticipate to receive from the accrued sinking funds, makes £79,484 10s 8d as the total amount proposed to be expended in works as shewn in detail in these estimates. It will then be seen that to meet the engagement made for the erection of the Kakaia Bridge, a vote of £6679 10s is required ; we also propose that a farther sum of £SOOO shall be expended on this bridge in order that it may be reconstructed with the view of making it strong enough for railway traffic ; these amounts, together with £2OO for clerk of works, makes a total of £11,879 10s as the proposed expenditure on this bridge. The next item is £7374 7s—railway or tramway from Holleston to Southhridge. This work has not yet been commenced further than having a survey made and levels taken. Though this proposed line cannot be called a portion of the great trunk fine of this island, yet, considering that it passes through the greatest producing district of the colony, we trust that when the General Government is in a position to carry out railway works this will receive early attention. The Northern railway has still unexpended on the vote of last year the sum of £45,710, and this amount appears here. This work has been brought under the notice of the General Government as one which ought to be immediately provided for under the Railway Act, and correspondence has taken place between the General Government and tbs Superintendent, which leads us to believe that when the General Government railway schemes are matured the money now being expended by* the province in the construction of the Northern railway will be refunded to the province. In the meantime, no effort will be wanting on the part of the Provincial Go-e vernment in pushing the works on, and should the amount now asked for be insufficient to meet the expenditure requisite to carry on the line towards Rangiora we shall not hesitate to anticipate a further vote off this Council. Timaru and Timuka Railway.—£7500 is tbe same as was voted last year, no expenditure having taken place upon it.' Breakwater, £4OO is the same amount as was voted last year. Jetty at Lyttelton from seawall, £3OOO is required to give further facifr ties for the export of grain and other produce. Districts south of the Rangitata v £3OOO is about the proportion which may be, considered due to that district as its share of the £IO,OOO released sinking fund, which has been put down as an asset on the other side,'' The other moiety of these funds it has beenalready explained, will be devoted, to inimi-,-gration, and the south district will receive its , share of the immigrants. The last item is . Contingencies £620 13s Bd, and the total expenditure under this schedule amounts to ■ £79,484 10s Bd. I now turn to Schedule D,- -. harbour works contingent on refund £20,000..; We expect during the current year to receive, , from the General Goverhment a refund of., the expenses of the Northern Nhilway; -amT ’

Ibis £20,000 is intended to be part of that refund, The Government will submit plans of the proposed works to the Council, and this will be amply sufficient to enable us to meet the necessary expenditure until the Council is again called together, and this we intend to do should the refund be made before the next session of the General Assembly. I now submit the estimated revenue and expenditure for the year ending 30 September, 1871, for the district south of the Rangitata. Estimated Keyence and Expenditure. Timaeo District, por Year Ending 80th September, 1871 revenue. * Land sales, the whole Proportion of Consolidated Revenueunder capitation allowance. £9746 ; less Provincial Charges, £4600 5246 Pasturage 7-k Local Revenue from various sources... 2,7/6 £33,051 EXPENDITURE. Proportion of Outstanding Liabilities £ claimed by General Government ... 1,218 Local Charges 8,766 25 per Cent Laud Sales 2,37 s Proportion of Loan ••• 14,000 Departmental Charges on Population Basis ... 5 » 064 31,423 Boad Boards 1 » 628 £33,051 Prom this it appears that on the basis of the arrangement made last year, there is a balance of £1628 to the credit of the district, which will be applicable for division among the Road Boards of that district.

— Estimated. Actual. £ 8. d. £ s. d. Pasturage Rents 33500 0 0 34145 13 1 Publicans’ Licenses 4300 0 0 4698 0 0 Auctioneers’ Licenses 680 0 0 800 0 0 Stage Carriage Licenses ... 15 0 0 9 15 0 Boatmen’s Licenses ... 24 0 0 62 14 0 Pawnbrokers’ Licenses 10 0 0 Lunatic Asylum 250 0 0 490 16 9 Hospitals 350 0 0 368 12 9 Rents 450 0 0 677 11 6 Sheep Tax 2025 0 0 2234 2 0 Dog Pees 2300 0 0 2134 10 0 Maintenance of Debtors ... 120 0 0 41 12 10 Incidental 350 0 0 635 6 11 Harbour 1400 0 0 2114 19 3 Interest 500 0 0 5205 5 3 Railways 49043 6 8 53392 16 2 Charitable Aid Refund 103 6 9 Sheep Fines ... 25 0 0 95307 6 8 107050 2 3 SCHEDULE B. £ 8a d. £ s. d. Land Revenue... 30000 0 0 31858 7 8 Education Contributions 660 0 0 450 0 0 Immigrants 2200 0 0 3089 3 9 Assessment of Runs 200 0 0 303 8 3 Educational Reserves 400 0 0 518 7 7 33460 0 0 36219 7 3 Expendixttee, 1869-70. SCHEDULE A, ' Estimated. Actual. £ 8. d. £ s. d. Executive 2500 0 0 2459 3 4 Electoral 200 0 0 197 12 9 Legislative 995 0 0 989 1 2 Justice 12000 8 8 11508 18 11 Charitable Aid... 4500 0 0 4500 0 0 Hospitals 5087 5 0 4191 14 7 Lunatic Asylums 4761 12 6 4147 16 11 Inspection Sheep 1830 0 0 1807 5 10 Harbour 2448 12 6 2391 0 9 Museum ... 650 0 0 650 0 0 Departmental Miscellaneous 3285 0 0 3209 18 7 Engineering 1850 0 0 1647 4 10 Railways 37681 2 10 37128 16 0 Provincial Govt. Works 4114 0 0 4934 13 9 Plantations 733 4 6 730 2 10 General Miscellaneous 2471 5 0 1896 1 6 General Contingenciea 2000 0 0 1956 11 0 87107 11 0 84346 2 8 SCHEDULE B. Waste Lands £ 8. d. £ S. d. Board 800 0 0 655 0 0 Surveys 6790 0 0 6591 8 8 Education 9500 0 0 7645 19 7 Immigration ... 9270 0 0 9764 6 10 Road Boards ... 8150 0 0 7850 0 0 34510 0 0 32506 15 1