PROPOSED ALTERATIONS AND REDUCTIONS IN AGENT-GENERAL'S OFFICE (CORRESPONDENCE WITH SIR J. VOGEL). [In continuation of D.-3, 1879.]

Appendix to the Journals of the House of Representatives, 1881 Session I, A-05b

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1881. NEW ZEALAND

PROPOSED ALTERATIONS AND REDUCTIONS IN AGENT-GENERAL'S OFFICE (CORRESPONDENCE WITH SIR J. VOGEL). [In continuation of D.-3, 1879.]

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1, The Hon. the Colonial Seceetaet to the Agent- Geneeal. (No. 5.) Sie, — » Colonial Secretary's Office, Wellington, 2nd January, 1880. Eeferring to previous correspondence on the subject of reductions in the staff of your department, and having in view the great diminution in emigration operations, the Government have arrived at the opinion that further reductions should take place in your office with as little delay as possible. The gentlemen employed during the past year as Emigration Agents were, I find, Mr. C. Holloway, at £150 a year; Mr. G. M. Eeed, at £600; Mr. A. Clayden, at £250; and Mr. District-Judge Bathgate, at £350; involving an expenditure of £1,350 in salaries, besides travelling and incidental expenses. I understand that the employment of two of these gentlemen in their present capacity will terminate shortly, if it has not already ceased, in terms of their appointment; and you will have gathered from Mr. Eolleston's letter, of the 6th November last (D.-la., Sess. 11. 1879), the wish of the Government that you should reduce the expenditure in this direction generally, as soon as possible, consistently with absolute engagements. I shall be glad to learn that you have been able to do so. I shall also receive with much satisfaction an intimation from you that a sensible reduction is capable of being made in the large staff employed in the London office, consisting as it does of nine clerks, besides the Secretary, Accountant, and shorthand-writer. It seems to me that, amongst other reductions, a second emigration officer might be dispensed with under existing circumstances; or, if the long services of the gentleman now filling that situation are such as to give him a strong claim on the consideration of the Government, then that room should be made for him by the removal of some other officer. I have no doubt you will agree with the Government that, looking to the large diminution which the suspension of emigration operations must effect in the work of your office, the strong wish expressed in Parliament for a reduction in the cost should be met with as little delay as possible. I have, &c, The Agent-General for New Zealand, London. John Hall.

No. 2. The Agent-Geneeal to the Hon. the Colonial Seceetaet. (No. 342.) Sie, — 7, Westminster Chambers, London, S.W., 21st April, 1880. Eeferring to your letter No. 5, of the 2nd January last, relating to the subject of reductions in the staff of this department, and stating that the Government have arrived at the opinion that further reductions should take place, I have the honor to report that I have from time to time taken the opportunity of carrying the wish of the Government into effect. Out of eight clerks engaged in this office in September last, more especially in emigration work, I have dispensed with the services of five—namely, Mr. Wait, Mr. Molloy, Mr. Kingston, Mr. Collas, Mr. Sugden. I have also dispensed with the services of the short-hand writer, and of one of the messengers (C. Parker). Of the gentlemen mentioned by you as employed during the last year as Emigration Agents, Mr. G. M. Eeed, Mr. Clayden, and Mr. Bathgate were specially sent to England under engagements made in the colony; and, as soon as I can, in good faith, terminate such engagements I will take care to do so. , I—A. sb.

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Mr. Clayden's engagement terminates at the end of June, and Mr. Bathgate leaves for New Zealand in about a fortnight. As regards Mr. Holloway, he has since August last been receiving a reduced rate of pay, as I advised you in my monthly report of Ist September. I have thus retained him, as, from the letters from the Hon. the Minister for Immigration, there appeared still a prospect of Government emigration being renewed to an extent which would render Mr. Holloway's services useful. But, judging from the latest advices, I think I shall be right in dispensing with his services ; and I have therefore given him three months' notice of the termination of his engagement, as provided for in his agreement. With reference to your suggestion, that a second Emigration Officer might be dispensed with, I think some misunderstanding has arisen from the fact that Mr. Shortt, as well as Mr. E. A. Smith, are described in the salary vouchers as "Emigration Officers." Mr. Shortt has always acted as " head clerk "in all emigration matters. He would no doubt be the officer called on to act in Mr. Smith's place in case of the latter's temporary absence; but, as a rule, he performs duties apart and additional to those of Mr. Smith, who acts as Despatching Officer ; and both are officers experienced in emigration matters, and who, if there is any prospect of resumption of emigration, should be the last to be dispensed with. The officers whose services are still retained in this office are those who are either required for the ordinary work of the department, or those who will be required, atid whose experience will be specially useful in case it is decided to send out "a limited number of nominated emigrants and single women some time during the year; but, if I receive instructions which will further limit the likelihood of emigration operations being resumed, I will make further reductions. I may add that the arrears of work caused by the exceptional pressure of last year, and the increasing amount of miscellaneous work intrusted to the department, have kept all officers, so far, well employed. I have, &c, Julius Vogel, The Hon. the Colonial Secretary, Wellington. Agent-General. P.S.—Since writing the above I have received the Hon. the Premier's telegram instructing me not to renew nominated emigration, and to send out only a limited number of single women. Under these circumstances, I shall probably see my way to dispensing with the services of two more clerks. I may, however, express the opinion that, with the increased price of wool and favourable harvest, there will be a renewal of prosperity in the colony.

No. 3. The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, 26th May, 1880. Disappointed no reply regarding reductions. Current year's vote £1,500 below last. Hall.

No. 4. (No. 93.) The Hon. the Colonial Seceetaet to the Agent-Geneeal. Sie, — Colonial Secretary's Office, Wellington, 11th June, 1880. I have the honor to inform you that the vote for the Agent-General's Office, which includes your salary and that of your staff, together with office-rent and contingencies, has been reduced to £4,000 for the year ending 31st March, 1881. I have therefore to request that you will take such steps, by making reductions in your staff, and by exercising economy in the expenditure on contingencies, as will bring the cost of the department within the amount appropriated for it. I have, &c, The Agent-General for New Zealand, London. Thomas Dick.

No. 5. The Hon. the Colonial Seceetaet to the Agent-Geneeal. Sie, — Colonial Secretary's Office, Wellington, 10th September, 1880. Adverting to my letter, No. 93, of 11th June, 1880, in which I informed you that the vote for vour department, including the salaries of yourself and staff, rent, and contingencies, had been reduced to £1,000, I regret now to have to state that that amount was further reduced in Committee of Supply to £3,000, for the year ending the 31st March, 1881, as you will have gathered from the Premier's telegram of the 7th instant, a copy of which I herewith enclose. That message will have given you a general outline of the reductions which it becomes necessary to effect in the expenditure of your department. I proceed to address you more fully on the subject. You are probably already aware that, in consequence of a resolution of the House of Eepresentatives, a deduction of 10 per cent has been made as from the Ist August, 1880, and until the 30th June, 1881, from all salaries, pay, and wages paid to the Civil servants of New Zealand, with the exception of the Governor and Judges. In compliance with this resolution, a deduction to the same extent, commencing from the Ist of October, will have to be made from your own salary and from those of the officers of your department, except when, in pursuance of these instructions, either a larger reduction is made, or you have seen your way to make a complete revision of salaries, effecting a larger saving than 10 per cent. It will be necessary that for the future the expenditure of your department should be brought within the following amount: Agent-General, £1,350; secretary, £600; accountant, £300; clerks, £350; messenger, £40; rent, &c, £360; total, £3,000.

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The shipping-officers and others engaged about the business of emigration, I presume, have been already dispensed with, in accordance with the instructions telegraphed to you on the 7th instant. The Government have arrived at this decision with much regret; but the exigencies of the colony and the determination of Parliament have left no other course open to them. The salary of the Audit Officer and the rent of his office will be paid out of other votes; but Mr. Hartwright will have to submit to the 10 per cent, deduction in common with the rest of the Civil Service. I have, &c, John Hall, The Agent-General for New Zealand, London. (in absence of the Colonial Secretary).

No. 6. The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, 7th September, 1880. Paeliament reduced vote for office to three thousand. Eeduce secretary's salary to six hundred. Engage accountant, not over three hundred. Dispense with shipping agents. All other salaries, including Agent-General's, to be reduced ten per cent, from October first. That reduction made by Parliament all New Zealand salaries. Instructions will be sent by next mail. Vogel, London. Hall.

No. 7. The Agent-Geneeal to the Hon. the Colonial Seceetaet. (No. 673.) Sie,— 7, Westminster Chambers, London, S.W., 11th August, 1880. I have the honor to acknowledge the receipt of your letter of the 11th June last, informing me that the vote for the department has been reduced to £4,000 for the year ending the 31st March, 1881, and requesting me to take such steps as will bring the cost of the same within the amount appropriated for it. I have, in my letter to you No. 342, of 21st April, and also in my letter No. 492, of 14th June, to the Hon. the Minister for Immigration, already stated the reductions which I am making ; and herewith I attach Schedule giving an estimate of the departmental expenditure for twelve months, which, after providing for salaries and office rent, shows a margin for contingencies, with respect to which I need scarcely assure you I will fake care and exercise every economy I have, &c, Julius Vogel, The Hon. the Colonial Secretary, Wellington. Agent-General. Estimated Departmental Expenditure for Twelve Months. Agent-General's salary .. ... .. .. .. 1,500 Secretary's salary .. ... ... .. 800 Accountant's salary ... .. .. .. 500 Clerk's salary .. ... .. .. ... 225 Clerk's salary .. ... .. ... ... 140 Messenger's salary .. .. ... 26 Office rent (less Audit Officer's room) ... ... .. ... 409 Contingencies ... ... ... 400 £4,000 The following salaries are charged against immigration : — £ Despatching officer .. ... ... .. 400 Clerk . ... .. ~ ... 200 Clerk... .. .. .. .. 65 The above do not include Mr. Sison's (Emigration Cashier, who leaves at the end of this month) salary, nor the rent of the store-room, which will be given up shortly Waltee Kennawat, 11th August, 1880. _______^»»_«_._«____- Secretary.

No. 8. The Hon. the Colonial Seceetaet to the Agent-Geneeal. Sie, — Colonial Secretary's Office, Wellington, 24th September, 1880. I have the honor to acknowledge the receipt of your letter No. 673, of the 11th ultimo, stating the action you have taken to reduce the expenditure of your department within the amount of £4,000. My letter of the 10th instant, and the telegram of the 7th, will have informed you that Parliament has reduced the vote for your office to. £3,000, and of the alterations which the Government desire to be carried out in consequence. I have, &c, The Agent-General for New Zealand, London. Thomas Dick,

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No. 9. The Agent-Geneeal to the Hon. the Colonial Seceetaet. Sie, — 7, Westmiuster Chambers, London, S.W., 6th October, 1880. I have the honor to acknowledge the receipt of your telegram (copy attached). lat once made the various officers aware of the instructions therein contained. A separate correspondence with Mr. Smith will show you the course I have taken with that gentleman, and I trust that it will commend itself to your approval, and that you will make the allowance I most earnestly recommend as a matter of justice. ] enclose herewith correspondence with Mr. Kennaway and Mr. McKellar. Having regard to the position of these gentlemen, and their ability and trustworthiness, I have thought it reasonable to agree to their wish to await the arrival of the instructions referred to in your cablegram. Mr. Kennaway reserves any remarks he may wish to make. Mr. McKellar not unnaturally expresses the opinion that you cannot be aware of his multifarious duties when you propose to make so large a reduction. Mr. McKellar's position is most responsible. Apart from his duties as Accountant, and as the officer who effects the marine insurance on the goods shipped to the colony, his duties in connection with the supply and shipment of railway and other materials are of a very onerous and responsible nature. A careless or dishonest officer might entail great loss on the colony; and, viewing the nature of his position, I cannot think it desirable to make so large a reduction in his salary Even if he agree to accept the reduction of 40 per cent, it cannot be supposed that he will be contented. I think it especially hard on whoever is appointed as Agent-General to succeed me that he should either lose the services of Mr. McKellar or find him discontented. To Mr. David Eenn I have given notice; and your wish that all the salaries from the Ist October shall be reduced by 10 per cent, will be attended to. I have taken upon myself to think that you do not desire to include the office-boy, who receives ten shillings a week. It seemed to me, however, so hard on all the officers in receipt of small salaries, to be so suddenly deprived of their means, and perhaps thereby be subjected to great hardships, that I have, out of my own pocket, paid to Mr. David Eenn the loss he suffers during the remainder of his stay, as also the loss sustained by Mr. Shortt, Mr. Hackworth, and Mr. McKillian for a period of six months. Vou will allow me to say that the records of my department show great reductions in the face of an enormous mass of work. You will also permit me to add that the officers of this department have enjoyed very rare increases of salary, that they have longer hours (10 to nearly 6 o'clock on ordinary days, and 10 to 2 on Saturdays,) than the other officers in the Civil Service, and that they are subjected to the exceptional hardship of an income-tax, which the other colonies do not allow their officers to lose. I must not, however, be supposed by this comparison to imply that I regard with favour the reduction other officers in the service have suffered. Knowing so many of them as I do, their devoted service, and, as a rule, their small means, it is to me a matter of keen regret that a wealthy colony like New Zealand has found it necessary to make them suffer for the policy of opening up the country which has of late years been pursued. I have, &c., Julius Vogel, The Hon. the Colonial Secretary, Wellington. Agent-General.

Enclosure 1 in No. 9. The Hon. the Peemiee to the Agent-Geneeal. Vogel, London. Paeliament reduced vote for office to three thousand. Eeduce Secretary's salary to six hundred. Engage accountant, not over three hundred. Dispense with shipping agents. All other salaries, including Agent-General's, to be reduced ten per cent, from October first, that reduction made all New Zealand salaries. Instructions will be sent by next mail. Hall.

Enclosure 2 in No. 9. The Agent-Geneeal to Mr. Kennawat. Sie, — 7, Westminster Chambers, London, S.W., 9th September, 1880. I have the honor to inform you that the Government have instructed me by cable that your salary is to be reduced to £600 a year. 1 shall be glad to know if you will be willing to submit to this reduction. Tou must allow me to say that I greatly regret having to make this announcement to you. lam totally at a loss to understand why the reduction made in your salary is larger than that of other officers. I can personally bear testimony to the excellence of your service, to your unwearied assiduity, and to the great responsibility of your position. Whenever, as has sometimes been the case, I have been too unwell to attend at the office, I have felt the greatest confidence in the knowledge that, you being in charge, the affairs of the department were in perfectly safe keeping. lam confident the Government does not possess in its-, service a more faithful officer, or one better qualified to discharge the duties of the appointment he holds. With many expressions of personal regard, I have, &c, Julius Vogel, W Kennaway, Esq. Agent-General,

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Enclosure 3 in No. 9. Mr. Kennawat to the Agent-Geneeal. Sie, — 7, Westminster Chambers, London, S.W., 16th September, 1880. I have the honor to acknowledge the receipt of your letter of the 9th instant, in which you inform me that the Government have instructed you by cable that my salary is to be reduced to £600 a year, and state, in reference thereto, that you will be glad to know whether I shall be willing to submit to this reduction. You further remark that you are totally at a loss to understand why the reduction made in my salary is larger than that of other officers. Under these circumstances, unaware also as I am of the reason why my salary has thus been made the subject of exceptional treatment, and in the absence of any knowledge of how and when such reduction is to be enforced, I venture to think that I am justified iu asking that I be allowed to postpone my definite reply to your inquiry, until I am placed in possession of the information which I have indicated above, and have had a reasonable time allowed me to give the same proper and careful consideration. If you allow me to do this, I shall reserve until then any further representations which under the circumstances I might deem it right, in justice to myself and to the office I hold, to make on the subject. Meanwhile I most sincerely thank you for the strong expression of confidence and appreciation of my services contained in your letter, and which I assure you I very highly value. I have, &c, Waltee Kennawat, Sir J Vogel, K.C.M.G. Secretary to the Agent-General's Department.

Enclosure 4 in No. 9. The Agent-Geneeal to Mr. Kennawat. Sie, — 7, Westminster Chambers, London, S.W., 18th September, 1880. I have the honor to acknowledge the receipt of your letter of the 16th instant, and in reply to say, I think it not unreasonable that you should postpone your decision until the arrival of the letter indicated in the telegram from the colony Meanwhile you will of course have to submit to the deduction of 10 ° 0 Yours, &c, W Kennaway, Esq. Julius Vogel.

Enclosure 5 in No. 9, The Agent-Geneeal to Mr. McKellae. Sie, — 7, Westminster Chambers, London, S.W., 9th September, 1880. I regret to have to inform you that I have been instructed by the Government in New Zealand to reduce the salary of the officer acting as Accountant, &c, to this department, to the sum of £300 per annum. This alteration involves either the loss to this office of the benefit of your services or your continuing to act in the above-named capacity at the reduced rate. I have, therefore, to request you to inform me whether you will (as I trust you will see your way to do) continue at the office at the reduced rate of salary It is with much regret that I make this communication to you, as I have no hesitation in saying that your services have been of special value to the department, and I should be truly sorry to lose the benefit of your experience and skill. I am, &c, W. G. McKellar, Esq. Julius Vogel.

Enclosure 6 in No. 9. Mr. McKellae to the Agent-Geneeal. Sie, — 7, Westminster Chambers, London, S.W., 15th September, 1880. I have the honor to acknowledge the receipt of your letter informing me that you have received instructions from the Government to reduce my salary from £500 to £300 per annum. I have to tender you my best thanks for the kind and considerate way in which you have conveyed this intelligence to me, and for the expression of your satisfaction with the manner in which I have discharged my duties during the eight years I have been in the service of the Government as Officer of Public Works and Accountant. As you are aware, these duties have not only embraced those of accountant, but also those of public works, comprising the duty of attending to the requisitions received from the Government, their shipment, and the responsible duty of protecting them by marine insurance. I have not, however, been described on the nominal roll of the Civil Service as holding any other office than that of Accountant. I venture to submit that this joint service of Officer of Public Works and Accountant has escaped the notice of the Government, when deciding upon the large reduction of my salary I would, therefore, ask the favour of your kindly submitting to the consideration of the Government that, owing to the joint-services being performed by me, a less reduction may be made from my salary I have, &c, Sir Julius Vogel, Agent-General for New Zealand. W G. McKellae.

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Enclosure 7 in No. 9. The Agent-Geneeal to Mr. McKellae. Sie, — 7, Westminster Chambers, London, S.W., 17th September, 1880. I have the honor to acknowledge the receipt of your letter of the 15th instant, directing my attention to the nature of your duties under your appointment as Accountant to this department, and requesting me to submit to the consideration of the Government that, owing to the joint services mentioned in your letter being performed by you, a less reduction might be made as regards the amount of the salary attached to the office which you at present hold ; and, in reply, to say that the instructions I have received are imperative, and I must ask you to decide whether you will accept the deduction. I will, however, send your letter to the colony, accompanied by remarks of my own confirming your statement, but I cannot in the meanwhile delay action. I am, &c, W. G. McKellar, Esq. Julius Vogel.

Enclosure 8 in No. 9. Mr. McKellae to the Agent-Geneeal. Sie, — 7, Westminster Chambers, London, S.W., 21st September, 1880. I have the honor to acknowledge the receipt of your letter of the 17th instant, stating that in accordance with the imperative instructions which you have received, you must ask me to decide whether I will accept the deduction from my salary. lam unaware of the reasons why the Government have decided to take a step which, if I remain in their service (which I wish to do), is equivalent to a reduction in my salary from £500 to £300 per annum, and I do not know how or when the Government propose, as regards myself, to carry such reduction into effect; and, until such information is before me, I feel that I cannot, with satisfaction to myself, definitely decide on the course which it will be incumbent on me to pursue. I would, therefore, respectfully ask that I may be allowed to postpone my decision until I have information on these points, and have had time to give them the consideration which their importance demands. In any communication you may make with the Government on the subject, I would, however earnestly request you to call their special attention to the nature of the duties which 1 have for the last eight years had to perform, and which comprise not only those of Accountant, but also those of Officer of Public Works, entailing the management of the supply and shipment of the large quantities of railway material and other goods which are ordered from the colony, and the responsible duty of effecting marine insurance on the same. I have, &c, Sir Julius Vogel, K.C.M.G., W G. McKella Agent-General for New Zealand.

Enclosure 9 in No. 9. The Agent-Geneeal to Mr. McKellae. Sie, — 7, Westminster Chambers, London, S.W., 18th September, 1880. I have the honor to acknowledge the receipt of your letter of yesterday's date, and in reply to say I am willing you should delay your decision until after the arrival of the mail bringing the letter which the Government, in the cable, state is being sent to me on the subject of the reductions. I am, <fec, W G. McKellar, Esq Julius Vogel. P.S. —Meanwhile you will, of course, have to submit to the deduction of 10 per cent.

Enclosure 10 in No. 9. Memoeandum. In compliance with instructions received from the colony, the Agent-General directs me to give notice that the salaries of all officers belonging to or attached to this department who are not otherwise specially dealt with will be reduced by 10 per cent. Such reduction is to take effect from the Ist of October next. W Kennawat, 10th September, 1880. Secretary to the Agent-General's Department. Seen.—H.H. Seen. —Eichard Hackworth, Thomas Shortt, B. McKilliarn.

Enclosure 11 in No. 9. Ms. Kennawat. Eeferring to the memorandum which we signed regarding the intended reduction of 10 per cent, off our salaries, we would beg respectfully that you would bring before the Agent-General the fact that 10 per cent, off our salaries, living in an expensive place like London, is vastly different to the like percentage taken from the colonial officers, where living is, comparatively, extremely cheap, and also that it should be borne in mind that a certain amount is taken off our salaries for Imperial purposes in the shape of income-tax, which the officers in the Civil Service of the colony have not to pay.*

* The income-tax of the officers of the other Agents-General is paid by their respective Goyernments.

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The system of increase, according to the Civil Service Eegulations, has also never been applied to this office. Eichaed Hackwoeth. Thomas Shoett. B. McKilliam. Minute For the Agent-General.—W Kennawat, 15th September, 1880. I will send to the colony this memorandum, which is perfectly correct in its statement. But I have no option left me; my instructions are imperative to make the reduction from the Ist October.—J V

No. 10. The Hon. the Peemiee to the Agent-Geneeal. Sie, — Government Offices, Wellington, 4th December, 1880. I have the honor to acknowledge the receipt of your letter No. 827, of the 6th October, in which you state the action you took upon receiving my telegram of the 7th September, informing you of reductions directed by Parliament to be made in salaries, &c, and in which you also comment upon that direction. 2. I have to say that your letter has been considered by the Government, and that the final determination as to trie questions raised by Mr. Kennaway and Mr. McKellar will be postponed until the receipt of the further statements which those gentlemen desire to submit. 3. The Government regret that you should, out of your pocket, have paid to the several officers named in your letter the amounts by which their salaries for six months were respectively reduced by your compliance with the instructions given in my telegram. Such an act by an officer holding the position of Agent-General was calculated, whatever may have been intended, to suggest to his subordinates that he believed they had been unjustly treated. The Government recognize and regret that hardship has, in many cases, been caused by compliance with the instructions of Parliament as to salaries ; but they are satisfied that that direction was a necessity in view of the condition of the colonial finances, and was not unjust. They think, therefore, that the Agent-General should, supposing him to be personally unable to agree with the views of Parliament and of the Government, have confined himself, in officially dealing with the question, to informing his subordinate officers what those views were. 4. I have to add that the Government consider the last paragraph of your letter altogether uncalled for, as being an expression of opinion upon action of Parliament affecting departments not under your control. I have, &c, Sir Julius Vogel, K.C.M.G., Agent-General, London. John Hall.

No. 11. The Agent-Geneeal to the Hon. the Peemiee. Sin, — 7, Westminster Chambers, London, S.W., 26th November, 1880. I have the honor to acknowledge the receipt of your letter of the 24th September, No. 157, in reply to mine of 11th August, No. 673 ; and also referring to your letter of 10th September and to the telegram of the 7th of that month, informing me of the further reduction of the vote for my department to £3,000, and of the alterations desired by the Government in consequence thereof. My letter of 6th October, No. 827, to the Hon. the Premier, will have informed the Government of the steps I have taken in order to carry out their wishes in this matter. I have, &c, Julius Vogel, The Hon. the Premier, Wellington. Agent-General.

No. 12. The Agent-Geneeal to the Hon. the Peemiee. Sie, — 7, Westminster Chambers, London, S.W , 30th November, 1880. I have the honor to submit to you correspondence which has passed between me and the Secretary of this department. I cannot too strongly urge Mr. Kennaway's claims, and express the hope that you will not insist on the very large reduction of his salary Mr. Kennaway's services are invaluable to this department, and the emoluments he receives, taken into consideration with his position, duties, responsibilities, and the heavy cost of living in London, are certainly not excessive. To take off 25 per cent of his salary is a hardship, the nature of which I should think has scarcely been sufficiently reflected on, and I sincerely hope it will meet with your favourable reconsideration. I have, &c, Julius Vogel, The Hon. the Premier, Wellington. Agent-General.

Enclosure 1 in No. 12. The Agent-Geneeal to Mr. Kennawat. Sie,— 7, Westminster Chambers, London, S.W., 22nd October, 1880. In continuation of previous correspondence, I have now the honor to inform you I have received by post the letter covering the telegram concerning the reductions I am ordered to make in

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my department. The letter does not deal with your case beyond instructing me to make the reduction, because of Parliament having reduced the aggregate vote. Under these circumstances lam left no option but to make the reduction indicated, and I beg, with great regret, to inform you that it must commence after the end of the year, say from Ist January, 1881. Yours, &c, W Kennaway, Esq. Julius Vogel.

Enclosure 2 in No. 12. Mr. Kennawat to the Agent-Geneeal. Sie, — 7, Westminster Chambers, London, S.W., 20th November, 1880. Eeferring to your letter in which you inform me that the letter concerning the reductions which the Government have directed shall be made in this department does not deal with my case, beyond instructing you to make reductions because of Parliament having reduced the aggregate vote, and that therefore you have no option but to commence the reduction in my salary—namely, from £800 to £600 per annum after the end of this year —I ask permission to lay before you a few remarks which, in justness to myself and to the office I hold, I feel called upon to make, and which I beg you will lay before the Government with such recommendation as you may think fit to make, with a view to their reconsidering the matter. It is not for me, as an officer of the Government, to comment on the proceedings in Parliament, and I do not therefore make any observation with respect to the sole reason given for the exceptional manner in which the question of my salary has been dealt with, and I use the word " exceptional" inasmuch as, while the general reduction in the salaries of those holding appointment under the Government has been fixed at 10 per cent., the rate of reduction as regards my salary is no less than 25 per cent. As is well known to you, the appointment of Secretary to this department was spontaneously offered to me, when at the same time I declined to accept what appeared to me the less permanent one of Emigration Officer in this country I should not have accepted the appointment at a less salary than £800 per annum, and any reduction such as I now have notice of will, I need hardly say, bear with exceptional harshness on one who has, on the strength of receiving the larger amount, transferred his household from New Zealand to this country (involving a large amount of special expenditure out of his own private means), and where his time is entirely occupied in the duties of the office to which he has been appointed. I have every reason to believe that the manner in which I have performed the duties of my office has met with approval. I have no written testimonial to show from the late Dr. Peatherston, the Agent-General, under whose directions I first had the general supervision of this department; but I have in my possession an unofficial letter, written by that gentleman at the time of his last illness, in which, referring to an important matter, he desires me " not to trouble myself with consulting him ; that whatever arrangements I may make he would approve and confirm." Sir William Tyrone Power, who held the office of Agent-General after Dr. Eeatherston, ou his retiring, wrote to me that " he wished to return me his best thanks for the cordial and able support which he had received from me in discharging the duties of Agent-General." I would also venture to remind you, further, that on several occasions you have been so good, in letters some of which have been printed, as to express your satisfaction at the manner in which I have performed the duties of my office, both generally and on special occasions. Speaking generally, I feel that I can safely assert that the officers of the New Zealand Government in this country, far from having any advantages over officers in the same service in the colony, are subjected to many disadvantages. (1.) They have Imperial taxation to meet, and this has of late years been materially increased. Eor instance, since I have been in England, the income-tax has been increased from twopence in the pound to sixpence, and the Queen's taxes have been proportionately increased. In the case of the officers attached to the Australian Agent-General's Departments, the Imperial income-tax is paid by the Government which employs them; but the officers of this department have not been granted a similar advantage. (2.) The officers of this department have to live at a distance from the office, involving the cost of travelling to and fro by rail, &c., and the leaving their homes at early, and consequent return at late, hours. (3.) The cost of living near London is more expensive than it is in the colony, and this fact I can testify to, as having personal experience of the cost of living in both countries. (4.) They have not the opportunities of so advantageously investing their savings as those resident in the colony (5.) They belong to an isolated department, they have little or no opportunity offered to them for promotion, or for transfer to any other department in case their services are no longer required at this office; and their not being immediately under the eye of those with whom it lies to fix the amount of their remuneration is naturally a disadvantage to them, inasmuch as many a special service may be done by them and yet be unknown, and therefore not taken into account by those who have the power to reduce or increase the amount of their salaries. In the case of anyone holding my office, as Secretary to the department, all these disadvantages bear with great force. It is, I think, admitted to be desirable that anyone holding the appointment should have a personal knowledge of the colony, and experience of its resources and requirements. When, however, he comes to this country such knowledge and experience is no longer of any personal utility to himself, as it; might be in many legitimate ways in the case of his remaining in the colony as a Civil servant there and I cannot help thinking that this is an important point which should have due consideration when the question of the amount of his salary is determined. It may be advanced that the duties of my office have diminished in number; but I would submit, in reference to this, that the number of responsible officers working with and under me has also been

9

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reduced, and the practical performance of their duties has centred upon myself. For instance, when the services of Mr. Cashel Hoey were dispensed with, it was expressly stated by the Government that the duties of Confidential Secretary could be performed by me; and when Mr. Ottywell left the office the emigration and other work done by him devolved chiefly upon me. The fact of Government assisted emigration having been discontinued does not by any means relieve me of all emigration work. I have still the responsibility of replying to a large number of inquiries made, both by letter and by persons calling at this office, for information of the most varied kind respecting the colony, its laws, its modes of doing business, its resources, its prospects for investors, farmers, and others, the routes by which it can be reached, &e, &c, which require, to answer satisfactorily, large personal knowledge and experience of the colony: And in reference to this part of my duties, I believe I can safely say that in the thousands of letters which I have written, giving detailed replies to special questions, and in the cases of many hundreds of personal applicants, I have never had a single complaint of giving incorrect or exaggerated information. I would therefore request you to refer the question of my salary to the Government, with a view to their taking into consideration the special circumstances connected with it, and which, I think, justify me in asking that I, as Secretary to this department, be not dealt with in a less favourable manner than that which has been determined on as regards the general body of the Civil servants of New Zealand. I have, <fcc, Waltee Kennawat, Secretary to the Agent-General's Department.

Enclosure 3 in No. 12. The Agent-General to Mr. Kennawat Sir, — 7, Westminster Chambers, London, S.W., 27th November, 1880. I have the honor to acknowledge the receipt of your letter of 20th November. I feel the greatest possible sympathy with the remarks you make. You do not exaggerate the importance or the multiplicity of your duties, nor do you even do justice to the many heavy responsibilities devolving on you. I have pleasure in testifying it would have been impossible for any officer to discharge his duties more to my satisfaction. lam quite at a loss to know any reason for your being reduced in salary, beyond the usual 10 per cent, affecting all salaries. I suspect, however, that the Government finding the vote of £3,000 insufficient have made the reduction, not because of any want of appreciation of your services, but because they were reluctant to exceed the vote. In sending the correspondence to the colony, I will not hesitate to express my hope that your salary may be reinstated, if you elect to remain. I am, &c, W Kennaway, Esq. Julius Vogel.

No. 13. The Agent-Geneeal to the Hon. the Peemiee. Sie, — 7, Westminster Chambers, London, S.W., 7th February, 1881. I have the honor to acknowledge the receipt of your letter of 4th December, in reply to mine of 6th October, in which you take exception to the course I had pursued in making reductions in my department. As that course was dictated by considerations which, to do myself justice, I must set out at considerable length, and, as I am about handing over my charge to my successor, I will, with that gentleman's consent, retain a copy of your letter, and reply to it when I am more at leisure, and when, too, I shall be more free to express myself unreservedly oil the whole question. I hare, &c, Julius Vogel, The Hon. the Premier, Wellington. Agent-General.

Authority : G-eobge Didsbuby, Government Printer, Wellington.—lBBl.

2—A. sb.