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Memorandum of Hon. the Premier to Ministers. The Premier reported that he had spoken to His Excellency upon the subject of the Governor's allowances, and also as to arrangements respecting furniture in Government House. His Excellency approved of the Governor's salary being increased to five thousand pounds, as suggested by Sir George Bowen, and approved of by the Cabinet. Otherwise, the Governor would not be entitled to a first-class pension; and in addition His Excellency would suffer by being transferred from South Australia to New Zealand. The five hundred pounds to be added to the salary it is proposed shall be taken off the total amount of allowances. The amount hitherto voted as allowances has been sixteen hundred pounds, but the vote has constantly been exceeded. Out of the total of the vote, payments have been made for the salaries of Private Secretary, Assistant Private Secretary, Clerk to the Executive Council, and Messenger; also for forage allowance, orderlies, and contingencies, including gas and coal. The Clerk of the Executive Council and the Messenger are the same as acted under the late Governor, and it will be but justice to them, that in any fresh arrangements a stipulation shall be included that their salaries shall be paid out of the sum voted for Governor's allowances. The salary hitherto paid to the Clerk of the Executive Council has been two hundred and fifty pounds a year. The Premier advises that it shall be increased by fifty pounds, in consideration of the largely increased duties since the introduction of the Public Works Policy, and because of the responsible nature of the Clerk's duties. These explanations are necessary in order that the course which it is proposed to follow may be understood. His Excellency is willing that the five hundred pounds to be added to the Governor's salary shall be taken off the amount of the allowances. The latter would, therefore, stand at eleven hundred pounds ; or with the fifty pounds to be added to the Clerk of the Executive's salary at eleven hundred and fifty pouuds. Out of that amount His Excellency would engage to recommend that there be paid to the Clerk to the Executive Council three hundred pounds, and to the Messenger (as at present) one hundred and thirty pounds—the balance to be available for any of the following purposes as required by His Excellency, namely :— Salaries of Private Secretary and Aide-de-Camp, forage allowance, gas (not to exceed one hundred and twenty pounds per annum, being the estimated cost of lighting the Domain and Reception Rooms), fuel for offices at Government House, orderlies, and contingencies. But His Excellency is willing to agree that the total expenditure under these heads shall not exceed eleven hundred and fifty pounds a year, or, if the salary of the Clerk to the Executive be not increased by fifty pounds, then that the total expenditure shall not exceed eleven hundred pounds a year. These arrangements can only take effect after the Legislature has approved them. For the meanwhile the present salary and allowances must continue. The Premier did not propose to His Excellency any alteration of the understanding upon which the Government Houses, are at present available to the Governor, except that a plan should be adopted similar to that recommended by the Secretary of State for the Colonies, as embodied in an Act of the Queensland Legislature, namely, that there should be an arrangement respecting the furniture in what may be considered the private rooms. The Premier does not consider it desirable that the plan which has before been proposed—that additions made to furniture in the private rooms be paid for by the Governor—should be adopted, because it would involve a very unsatisfactory division of property. The Premier thinks it will be much better to adopt a plan like that of Queensland, namely, that the Governor shall pay six per cent interest upon the value of all furniture in the private rooms. Obviously however such a plan cannot apply so fas' as existing furniture is concerned to any Governor who has taken office, His Excellency agreed, therefore, that in the new Bill similar provisions shall be introduced to those in the Queensland Act, section 8, with this proviso, that during the continuance in office of the present Governor the interest charged annually shall only be on the furniture, &c, added to the bed rooms, kitchens, and other rooms not used for the public reception of company. The valuation in terms of clause 8 to be made on the assumption to office of any Governor after the present. Cleaning, keeping houses in repair, and gardening, the same as during the term of the late Governor. There should also be contained in the Bill provisions respecting Acting-Governor similar to those in the Queensland Act. 17th June, 1873. Julius Vogel. Extract from Minutes of Proceedings of the Cabinet Council of 19th June, 1873. This was agreed to in Cabinet excepting that in the opinion of Ministers the Governor should not be charged interest on the additions made during his term of office since he is entitled to the same conditions as previously prevailed, and such interest would not in case of previous Governors have been charged. The provision respecting furniture therefore to apply only to any new Governor.

Memorandum from the Governor. The Governor, according to the advice of Ministers, directs that there shall be laid on the table of the House of Representatives a despatch from His Excellency Sir George Bowen and other papers upon the subject of the allowances voted for the establishment of the Governor. He desires that it shall be understood that he does not consider that Parliament is in any way precluded from reviewing the terms upon which he entered upon the occupation of Government House, and that he will acquiesce, should they see fit to make the rules in regard to Government House contained in the Governor's Salary Bill applicable to himself. James Fergusson, Government House, 2nd August, 1873. Governor. By Authority : Gbokge Didsbury, Government Printer, Wellington—lB73.