8.—6

X

for Public Works, in his Public Works Statement, will state what we propose with regard to the main trunk line north of Auckland. He will also make a proposal with regard to utilising the Puhipuhi kauri forest. STATE AND PROSPECTS OF THE COLONY. - I "will now, Mr. Hamlin, with the permission of the Committee, call the attention of honourable members to some prominent and important facts relating to the condition and prospects of the colony. But before doing this I will say a few words on an apparently adverse fact—the only one of any significance I have met with —which has naturally excited a good deal of discussion. The colony has lost by emigration during the last two years 9,580 people—that is to say, 9,580 more people left than arrived in New Zealand. Of these, 4,476 were males above twelve years of age. This represents a diminished rate of increase, but not a decrease, of the population, as the natural increase of births in excess of deaths for the past two year's has been 26,192 —the births having been 38,037 and the deaths 11,845. The fact, however, that 9,580 people have left the colony must excite regret, and for it many remedies have been suggested. I have given the matter anxious consideration, for the Government recognised it as a duty to find a remedy if one was to be found; but I came to the conclusion that, in the circumstances of this colony and the neighbouring colonies, no remedy was possible that we could consent to apply; for the only effective remedy, in «my opinion, was the continuance of a large public-works expenditure. It is evident, I think, that during the many years that we have been continuously spending very large sums of money on public works—not the General Government only, but the local bodies also —a numerous class has sprung up who have been relying on the public expenditure as a means of livelihood, and many of whom do not care to live the life of an ordinary settler. In support of this view I would point to the fact that, as our expenditure on public works decreased, so the tide of intercolonial migration turned against us. Taking merely the expenditure within the colony itself, our expenditure out of loan for work done in the colony during the year 1886-87 was, in round numbers, £1,140,000, and for the year 1888-89 £423,000 ;so that we have been spending during this last year at the rate of £717,000 per annum less than we were spending two years ago. This, I take it, would in itself far more than account for the wages of the 4,476 males who have left us ; but, in addition to this, there has been a considerably decreased expenditure on public works by the local bodies. Of the total number who had been employed on public works some were no doubt absorbed by other industries, but the less versatile or more restless drifted away. There is no doubt that the recent exceptional discoveries of gold and silver in neighbouring colonies, and the extraordinary prosperity which the Colony of Victoria has enjoyed during the last two years —the same period during which we have been making the large reduction in our public-works expenditure—have also tended in a marked degree to induce many persons (who do not or perhaps cannot afford to look very far ahead) to try their fortunes on the other side. I have therefore come to the conclusion that a loss of a small percentage of our population was inevitable when we began seriously to contract our large publicworks expenditure, and that, looking at the circumstances of the case, we have passed through the ordeal remarkably well. To the reduction of public-works expenditure is also largely traceable a reduction which has recently taken place in our railway traffic ; and it is satisfactory to find that this is so, rather than that it should be due to a falling-off of the legitimate internal trade of the country. Now let us take the last half of the same period, the last of the same two years of which I have just been speaking, and see what our permanent industrial population has been doing so far as this is shown by our exports. Honourable members will find attached to this Statement a table showing in detail the exports for the last two years. From this it will be seen that in every article of importance, with one exception, there has been an increase during the last year, and in many of them a large increase. This table will well repay a careful study. It will be seen that the export of grain has increased from 3,630,843 bushels to 5,584,488 bushels ; grass seed, from 164,550 bushels to 274,772 bushels ; frozen meat, from 49,363,8881b. to 63,003,4721b.,—and it needs

"be stated in Public Work's Statement.

State and Prospects of the Colony.

Colony has lost by emigration last two years 9,580 people, of whom 4,476 males above fourteen years of age.

Great reduction in public-works expenditure more than accounts for wages of 4,476 males.

Also exceptional discoveries of gold and silver in neighbouring colonies, and prosperity of Victoria.

Table of exports for last two years appended. Table No- 14.

Increase in every important item, with one exception, and in many a large increase.