8.—2

14

made part of the security. With regard to each of the three last-named classes of works, we shall also propose that, with the consent of a majority in number and value of the rated residents in the district within which the works are to be constructed, the security of a special rate may be given. Eor works on the Gold Fields, we shall propose a special security over a portion of the Gold Fields Revenue withiu the district benefited, besides security over rates, tolls, or charges. Further, we shall propose to include in the Act a provision that, upon the request of the Superintendent and Provincial Council of any Province, 15 per cent, of the Land Revenue may be paid to a Provincial Loan Account, and that this fund shall form part of the security which may be given for any of these Provincial Loans. We shall also propose that in certain cases the Assembly may authorize any Province to borrow against special blocks of land to be specified in an Act of the Assembly. The Bill we shall introduce will be so framed that lenders of money in any of the cases referred to will not have any other security, or securities, than that, or those, mentioned in the Provincial Ordinance respecting the particular loan; and no security for such loans will be permitted to be given over the general revenue of a Province. There will, in short, be included in the Bill a full and explicit declaration of the non-liability of the borrowing Province or of the Colony, except to the extent and in the manner specified in the Provincial Ordinance authorizing each particular loan. The machinery for giving effect to the Ordinances, and for compelling the setting aside of the various securities, will be of a stringent nature; and a remedy at law will be given to lenders to enable them, if necessary, to require specific performance of the conditions under which money is borrowed. The provisions of the Bill will, as far as possible, encourage the passing of a separate Ordinance for each separate work or group of works in a district, the object being so to shape the several loans as to make it to the advantage of those persons who are interested in a particular work or works to set apart a portion of their annual savings, for the purpose of lending the money in aid of the construction of such work or works. Whilst it is by no means desirable that a Government should encourage the people of a country to invest their whole savings permanently, and therefore to abstain from engaging in enterprises calculated to be reproductive, it is not undesirable that a portion of the savings of the people of a country or the residents in a district should be so invested. Especially is such the case, when those to be directly benefited by public works are enabled to invest savings in those works more profitably than in ordinary securities, and when it will practically be the fault of such persons themselves if the security is not as good as that offered by other permanent investments. We are in effect proposing to adopt the principle which has covered Great Britain with local works, lloads, harbours, bridges, and many useful institutions of the United Kingdom are due to local taxation aided by and securing local loans. PUBLIC, WORKS. Papers have already been laid before the House, from which it will be gathered that Public Works are proceeding very satisfactorily. I have no doubt the time will come when the rapid manner in which the Public Works Department was organized, and the revolution completed which gave to the Colony the charge of the construction of the main lines of communication, will be regarded with astonishment and admiration. lam not unmindful of the fact that a Government was sacrificed to the impatience of the House in respect to that very organization, of the extraordinary development of which I am now expressing admiration. But that impatience was not unnatural, under the circumstances of intense sympathy with which the country responded to the initiation of a comprehensive system of Public Works. We have now a Public Works Department, the arms of which extend from one end of the Colony to the other; and which has under its control and management a, system of Public Works that will open up communication throughout the two Islands. But we must not overtax it; and I implore honorable Members to aid the Government in their determination to maintain for the Public Works Department a Colonial character. I will ask the permission of the Committee to devote a few" words to

Special Rates may be authorized in districts. Security for Gold Field Works. Further security— Provincial Loan Fund to be created out of Ordinary Land Revenue. Special Blocks of Land may be borrowed against.

Non-liability of Province or of Colony, except in mode and to extent specified.

Separate Ordinance for each work or group of work»;

so that settlers specially interested in works may invest savings in aid of their construction.

This not undesirable.

In fact, principle so successful in Great. Britain, proposed to be adopted here.

Papers as to Public Works.

Papers as to Public Works.