a.—2

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This is a want which should be immediately satisfied. I propose, therefore, to recommend that the sum of £50,000, out of the available balance of the General Purposes Loan s be applied to this purpose. ALLOWANCES TO THE PKOVINCES. During the ensuing four months it is proposed to pay to the provinces the capitation and special allowances at the same rate as last year, except in the case of the extraordinary allowances amounting to £40,000, granted to the Provinces of Auckland, Nelson, and Westland under the Provincial Public Works Advances Act of last Session. The allowances and advances will amount to £140,775, as follows :— £ s. d. Capitation Allowance ... ... 89,458 5 0 Special Allowances ... ... ... 2,816 15 0 92,275 O 0 Payments under Provincial Public Works Advances Act— Auckland ... ... £16,000 0 O Wellington ... ... 5,500 0 0 Nelson ... . ... 23,000 0 0 'Marlborough ... ... 4,000 0 0 48,500 0 0 As respects the sums last named, I should explain that such amounts as may fall due prior to the abolition of the provinces will be paid as hitherto; as respects expenditure on this account after that date, the Government will itself be prepared to make payments for all necessary services. LOAN EXPENDITURE. I will now inform the Committee what is the expenditure which it is proposed to make this year for Public "Works and Services properly chargeable on Loan. I have shown that of the Defence and Other Purposes Loan there is an available balance of £125,315 Is. 4d., less the charges and expenses of raising. A part of this balance I shall ask the Committee to re-appropriate as follows : — £ s. d. For Defence ... ... ... ... 20,000 0 O For payment to the New Zealand Settlements Act Account, to provide for repayment of the sum of £20,500 advanced from the Immigration and Public Works Loan, and to provide for outstanding liabilities ... ... ... ... 45,000 0 0 Total ... ... ... £65,000 0 0 Of the General Purposes Loan there is an available balance of £106,500, also subject to the costs of raising. I shall ask for authority to apply a part of this balance as follows : — £ b. d. For School Buildings ... ... ... 50,000 0 0 For payment to the Immigration and Public Works Loan in aid of the amount appropriated out of that loan for Lighthouses ... ... ... 30,000 0 0 Total ... ... £80,000 0 0 Out of the Immigration and Public Works Loans, I propose to ask for appropriations as follows:— ' £ b. A. ForEailways ... ... ... ... 767,400 0 O „ Immigration ... ... ... ... 392,348 15 8 „ Telegraph Extension ... ... ... 29,700 0 0 „ Public Buildings ... ... ... 75,779 10 9 „ Lighthouses ... ... ... ... 91,700 0 0 „ Public Works Department... ... ... 77,134 14 6 Total ... ... ... £1,434,063 011 The Committee is of course aware that the whole proceeds of the several

Table I, page 38,