B.—l.

for cadets are desirable, because they prove that the mind has been trained to observation and to acquiring knowledge; but examinations for advanced positions afford no guarantee whatever of the capability and fitness of the candidates for the positions for which there are vacancies to fill. A capacity to cram fs not to be compared with the capacity which the heads of departments and Ministers can detect by watching the general conduct of officers. The classification will not include the officers of the Legislature, nor those of the Gaols or Working Bailways, which already have their own systems of classification. There are some few other exceptions, to which it is not necessary now to call attention. The industrial-classification rises will commence at once. We estimate the cost, apart from the rises of cadets to which they are already entitled, at about £6,500 this year; at about £10,000 next year; and thereafter there may be about a like rise for a year or so, and then a gradual reduction. On the whole, the increases will not much exceed those which are, as a rule, spasmodically made. In the end there will be a considerable reduction on the spasmodic inoreases, and the new rules of entry into the service will greatly promote future economy. LAND FUND. The expenditure for the current year is estimated at £208,971. This includes the usual charges under special Acts, such as the thirds of the sales of land on deferred payments, New Plymouth Harbour Board Endowment and other charges, also the Land and Survey Departments, and rates on Crown and Native lands. The revenue for the year from land sales is estimated at £163,960 ; so that, taking into account the credit balance of £31,931 at the end of last year, we shall have a deficiency on the 31st March, 1886, of some £13,000, which is likely to be reduced by the payments not being made within the year. BEVENUE OF THE YEAB. The estimated ordinary revenue of the year, with the changes in Customs and Stamps, I have indicated, and, with a |d. property-tax, is as follows : —

Revenue.

I have, I think, sufficiently enlarged already on the changes we propose in the revenue, and I may pass on to the balance between revenue and expenditure. EESULT AS BETWEEN EEVENUE AND EXPENDITUBE. The ordinary expenditure of the year already described amounts to £3,972,133. I have three items to add to this, viz., £6,500 for the proposed Civil Service amendments, as to which I may say, if not passed in the shape proposed, some at least of it must be asked for by way of additions to salaries ; £75,000 which

XV

1885-86 188-r-85. Estimated. Estimated. Actual. Customs Stamps (including Postal Cash Eeceipts) Property-Tax at J; last year, f. ... Beer Duty ... Bailways ... Telegraphic Begistration and other Fees Marine Miscellaneous £ 1,500,000 538,500 270,000 55,000 1,116,000 103,400 34,000 14,000 32,000 £ 1,375,000 527,500 144,000 55,000 1,120,000 94,000 37,000 16,000 35,000 £ 1,411,102 510,019 145,380 55,715 1,050,743 95,788 36,449 13,393 57,730 Depasturing Licenses, Bents, &c. ... Accretions of Sinking Fund 3,662,900 195,000 258,000 3,403,500 188,000 247,700 3,376,319 193,175 247,700 4,115,900 3,839,200 3,817,194