G.—3a,

2

With reference to the portion appropriated as an endowment for an industrial school at Motueka, it has always been considered that the estate for its size had been denuded of more than a fair proportion of its landed property for educational purposes ; but, independent of the loss sustained in that way, a further charge of £160 is now incurred annually for the schools at Wakapuaka and the Wairau. Besides the last-named sum, the whole of the medical officer's salaries, amounting to £230 per annum, are borne by the fund, a charge that is defrayed in other parts of the colony out of general revenue. Permanent charges of this nature seriously cripple a small fund, and it would be only fair that the income should be subsidized by an annual vote of the House to meet the aforesaid expenses, in consideration of the loss the estate has suffered in various ways. The annual receipts collected on account of the Greymouth fund during the past year amounted to £3,663 3s. lOd. ; this added to the sum of £45 18s. lOd. placed to the credit of the fund in adjusting the account, and the balance of £2,732 15s. 3d., makes a total of £6,441 17s. lid. The expenditure for the same period, inclusive of a sum of £342 9s. Bd. for sundry items chargeable against the fund not included in previous returns, amounts to £4,609 65., leaving a balance of £1,832 lis. lid., only £921 18s. lid. of which is at present available, the remainder being a debt due by the Nelson fund. Of the amount expended, £2,692 lis. lid. was expended on behalf of the Natives, £306 ss. for salaries, and £1,224 4s. sd. for various other purposes. One of the last-mentioned items, £541 7s. 9d., has been expended in protecting the river banks at the Arahaura portion of the estate. This has proved a very expensive portion of the property, hitherto it having cost nearly one-half the income collected from it for protective works, and a further sum of £800 or probably £1,000 is still needed for this same purpose. I enclose herewith detailed statements of the receipt and expenditure of both funds, to facilitate the examination and identification of the various items comprised in the several totals. I have, &c, Alexandeb Mackay, The Under Secretary, Native Department, Wellington. Commissioner.

Statement of the Eeceipts and Expenditure of the Nelson Native Eeserve Fund, from the Ist July, 1876, to the 30th June, 1877. Eeceipts. £ s. d, £ s. d. To Rents collected and paid to Public Account, — Nelson ... ... ... ... ... ... 577 7 0 Moutere and Motueka ... ... ... ... ... 477 18 5 Aorere ... ... ... ... ... ... 17 16 0 Westport ... ... ... ... ... ... 126 0 0 1,199 1 5 Total ... £1,199 1 5 Expenditure. £ s. d. £ s. d; Amounts expended on behalf of the Natives, — By Medical attendance ... ... ... ... ... 50 7 2 Passages ... ... ... ... ... ... 77 17 0 Provisions and clothing ... ... ... ... 152 14 5 Allowance for rent ... ... ... ... ... 52 10 0 Agricultural implements, &c. ... ... ... ... 65 11 4 398 19 11 Salaries ... ... ... ... ... ... ~. 58 6 8 Sundries ... ... ... ... ... ... ... 11 9 9 Commission, collecting rent ... ... ... ... ... 18 14 0 Building materials ... ... ... ... ... ... 11 1 2 99 11 7 Total expended out of imprests ... ... ... 498 11 6 Supplementary charges paid direct from the Treasury,— By Commissioner's salary, 12 months ... 225 0 0 Secretary „ 12 „ ... 50 0 0 Interpreter „ 12 „ ... 40 0 0 Medical Officer, Nelson, 9 „ ... 37 10 0 „ Takaka, 12 „ ... 30 0 0 „ Queen Charlotte Sound, 12 „ ... 50 0 0 „ Wairau, 12 12 „ ... 50 0 0 482 10 0 Schoolmaster's salary, Wairau, 12 months ... ... ... 60 0 0 One-fourth cost of rectifying Native Reserves Accounts ... ... 12 10 0 72 10 0 Total expenditure ... ... ... ... ... 41,053 11 6 Balance ~. ... ... ... ... ... 45 911 £1,199 1 5