B.—No. 2.

independent of, or rather in addition to, the million and a half sterling which, over ten years, I propose, in one form or another, should he expended on Immigration. So confident are we that a great deal of the work comprised in these proposals can he effected by guarantees or subsidies, and by land payments, that_ we seek authority to directly borrow only six millions to carry out our proposals, including Immigration. To resume, I do not ask honorable Members to adopt the figures I have given; let the results be worked out as honourable Members please, and I doubt their being able to come to the conclusion that our proposals involve a too large responsibility. The Customs taxation cannot, I think, judiciously be increased. It may be desirable from time to time to amend and reduce the Tariff; but we must not calculate on its yielding, per head of the population, a larger amount than at present, —although, as the cost of the Government does not increase proportionately with the population, the increase of population will add largely to the revenue available for expenditure. We must also remember that the direct taxation of the Colony is small. For the first three years, the payments will be so inconsiderable as to leave little room for apprehension of difficulty in finding the money. After three years, supposing that extraordinary sums are required, will it be a great hardship to increase the Stamp Duties, or to have a House-tax, or an Income-tax, or some tax which will touch that lucky class, the absentees, who enjoy all the advantages, whilst they share not the burden of the hard colonizing labours without which the most favoured country on the globe's surface could not attain permanent prosperity ? I do not desire to express an opinion that any such taxation will be rendered necessary by a Railway system in conjunction with Immigration on a large scale. My conviction is in a contrary direction ; but, looking to the worst, what I wish to maintain is, that the fear of a mild and moderate future addition to the taxation should not be placed in competition with the great effects which will follow the construction of railways, through the employment they will afford, the immigration that will accompany their progress, the facilities they will render for bringing produce to market, and the aid they will lend to the general settlement of the country. I have dwelt at great length upon the various sources from which the railways can be constructed. I will only further add, in regard to the subject generally, that the proposals the Government are now making are too large to make it either desirable, or I might add compatible, with a liberal form of Government, that they should insist on determining all the details. The Government ask the House to assist them. The broad features of the policy there will be no difficulty in recognizing; to those, of course, the Government adhere; but the Government do not pretend to the right to lay down the details so closely as to justify objection to those details being subjected to independent criticism. At the same time, I am not making proposals to which a specific form has not been given. On the contrary, so impossible, without reducing them to a compact form, would it be to describe the nature of these proposals with sufficient accuracy to enable you to understand all their bearings, that I have had all the Bills prepared, and will without delay circulate them. It is fortunate that the time for a General Election is approaching. The Assembly may prefer that the country should be consulted on the whole plan. Ministers could not object to such a course; but if the Assembly, as now constituted, is willing to deal with the question, Ministers do not shrink from the responsibility of pressing it, for they are of opinion that the state of the Colony is such that the sooner measures of progress are matured the better will it be for the Colonists. Before I turn to the stibject of Immigration, I may mention that, in connection with Public Works, the Government propose that power shall be given to enable the Government to aid the Provinces, to a limited extent, to afford assistance to the construction of works for supplying the Gold Fields with water. I have already said that the subjects of Immigration and Public Works are most intimately allied. Because I deal with them separately, honorable Members

£0,000,000 only to be borrowed, including Guaranteed Loan.

Customs taxation should not be increased.

Additional taxation not necessary ; but if necessary, counterbalanced by results.

Details of Railway S scheme to bo subject] to consideration.

Government ready to carry out the schcaic, but willing to go to country.

Water Supply to Gold Fields.

18

FINANCIAL STATEMENT.