8.—2

10

The Customs Department will not bear any great reduction, but it has been instrumental in effecting a number of economies. In most of the land districts the Collectors of Customs have been made the Receivers of Land Revenue, by which a saving of £775 a year in salaries has been attained. They also collect liconse fees for the municipalities, and, as revenue officers, if our proposals are adopted, will undertake still further duties of an important nature without extra cost. The Postal and Telegraphic Departments show the increases which are required by the extension of the services. The estimated expenditure on the working railways is £187,203, an amount of course largely affected by the mileage of railways opened. My colleague, the Minister for Pubiic Works, be able to show that the change which has been made in the management of the railways has already led to large savings, and is calculated to promote still greater ecomony in the future. The Miscellaneous is estimated at an unusually large amount this year, in consequence of including therein provincial liabilities and votes for special services. But, as I have shown when alluding to the subject of the Provincial Liabilities, there are items of receipt to the extent of £195,703 specially available to meet these extraordinary demands. In the estimates will be found an item of £44,000 for the purchase of heavy ordnance, and the construction of defensive works in the principal harbours of the cclony. The amount is based on an estimate formed by a Military Commission in England. I shall not do more here than refer to a possible objection to the charge being met out of revenue. On this I would merely remark that we think the time has come when loans should be entirely applied to works of a reproductive character, and calculated to develop the resources of the colony. A large number of charges formerly made against loan will in future be met out of revenue, leaving free for railway construction and great colonial works the proceeds of loans which the Legislature may at any time sanction. The expenditure on the whole has been framed to make ample provision for the wants of the different services, and to provide for charges which, it is anticipated, will have to be met during the year; but it is hardly necessary to observe that the first object of judicious administration is to effect those savings on the estimates which can be done without destroying confidence in the good faith of the colony, or impairing the usefulness of the public service. ESTIMATED EEVENUE, 1878-79. In estimating the revenue for the present year, I am not taking into account any alterations we have to propose in the tariff, but am dealing with the revenue to be raised under the existing law. Ereserving the distinction, to which I have already drawn the attention of the Committee, between the different kinds of revenue, the amount estimated from taxation this year is £1,490,000. The Customs are expected to yield £1,320,000, and Stamps £170,000, both being calculated from information carefully prepared. Under the head of "Receipts for Services Rendered," we anticipate a revenue of £1,112,145, or a total ordinary revenue of £2,602,145. Included under the last head, the amount estimated from Eailways is £710,000, or in excess of the returns of the previous year by £148,542. The other services show an estimate of increase on the revenue of the past proportionate to our progress. The next great head is " Territorial Eevenue," from which, keeping our expectations fairly within the bounds of moderation, we hope to receive £1,229,677. From receipts specially applicable we shall get £230,215. Adding these amounts together, the total estimated revenue for the year is £4,062,037, or —including the fees, &c, payable to local bodies, estimated at £200,000 —- £4,262,037. To this amount I add the balance of the surplus of last yaar, £20,468 13s. 2d.; and we have a total of £4,282,505 13s. 2d. as the estimated receipts of the year. Deducting the estimated expenditure, £1,193,509 Bs. 6d., we have a surplus of £88,996 4s. Bd., available to meet supplementary votes or contingent expenditure. THE PUBLIC WOBKS ACCOUNT, 1878-79. Before passing from the accounts of the year, I will state the position of the Public Works Account, as it will be affected by the proposals which I

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