A.—7a

14

I do not think it necessary to enter at length upon the circumstances attendant on the creation of the Speaker and six Councillors last year; the reasons which guided me in that action are fully set forth in the public despatches printed and laid before Parliament, as well as in my despatches of the 24th January and 3rd February, 1891. I may add, however, that the position of parties was remarkably similar to that which occurred in New South Wales subsequently. There, instead of enrolling themselves under the banner of one party, the labour members announced that their support would be given to either party " in return for concessions," and Sir Henry Parkes, the Premier, whom it was loudly proclaimed had been " beaten at the polls," continued in power with the help of labour members for a short time. There was nothing to prevent a similar thing having taken place here in respect to Sir Harry Atkinson's Administration had it not been for his own ill-health. Mr. Ballance claims that he is entitled to make seven appointments to counterbalance these, and six. more at least to take the place of deaths which have occurred since (one of the deaths has been of a newly-appointed Councillor), on the ground that on taking office he might have advised six or seven creations, and then have advised more consequent on deaths. It is to be borne in mind, however, that the six made by Sir H. Atkinson's advice were the first for three years and subsequent to the deaths of a considerable number of Councillors. The latter contention would limit Mr. Ballance's requirements to twelve new men. I made careful inquiry into the names of the Premiers to whose advice the existing Councillors owe their seats, and to their voting last session. Before the appointment of Sir George Grey as Premier I am content to assume that as far as existing party distinctions are concerned none can be called of Liberal type. Since then Sir George Grey, Sir Julius Vogel, and Sir Eobert Stout have advised the appointment of fifteen out of the thirty-nine. Mr. Ballance contends that Sir Julius Vogel was not a Liberal Premier, and that his influence on the Stout-Vogel coalition Government was so great that one-half of the appointments made on their advice were of the political complexion of Sir Julius Vogel, and not that of Sir Eobert Stout. Whether the existence of any such understanding can be taken officially into account is a matter for your Excellency's consideration. It became apparent, then, to my mind that it would not be easy to justify to the Secretary of State my action were I to consent to add such a number of Councillors to the fifteen created by Liberal Governments as could give them a majority over the existing majority of Councillors appointed by other Governments—fifteen plus twelve would make twenty-seven—the remaining Councillors would number but twenty-four. I should have been accused of lending myself to a scheme which might alter the complexion of the Upper House in order to enable the Ministry of the day to carry measures upon which the voice of the country had not been directly heard, and without the direct authority of the electors given to the proposal to bring the Upper House into harmony with the Lower. "Under those circumstances I declined to receive advice such as was proposed, and desired that it might be deferred until your Excellency's arrival, inasmuch as my stay in the colony would not enable me to see the end of consequences which a persistent refusal to accept the advice of my Ministers would entail. Your Excellency will find that, of the principal measures introduced by or supported by the Government last session, their financial Bills were carried in the Council. The Factories Act and a few others passed with amendment, while the Land Bill and the Electoral Bill were lost in conference with the other House. The Land for Settlement Bill, Workmen's Lien, and Counties Bill were rejected by majorities less than would have been counterbalanced by eight more appointments, the maximum to which I saw my way to accede, while the Shop-hours Bill and the Payment of Members Bill were rejected by very large majorities, not so great, however, as to remain unaffected if additions to the extent of Mr. Ballance's original proposal (eighteen) were to be made. 16th February, 1892. ' Onslow.

List of the several Premiers to whom the Present Legislative Councillors owe their Seats. Premier in office at date of appointments : Stafford, Domett, Weld, Fox, Vogel, Atkinson, Hall, Whitaker, Stout, Memoeandum by the Clerk to the Legislative Council showing how the Legislative Councillors appointed in 1891 exercise their Votes on Measures introduced by the Government. Session 2, 1891. Hon. Mr. Bowen. Legislative Council Bill: Three divisions. Voted twice with Government; voted once against. Aliens Bill: One division. Voted against Government. Truck Bill: One division. Voted against Government. Auctioneers Bill: Three divisions. Voted twice against Government; absent once. Factories Bill : Nine divisions. Voted nine times against Government. Shop-hours Bill: One division. Voted against Government. Female Suffrage Bill: One division. Voted with Government. Electoral Bill: Eight divisions. Voted six times against Government; absent twice. Land Bill: Fifteen divisions. Voted fourteen times against Government; absent once. Payment of Members Bill: Two divisions. Voted twice against Government. Selectors Land Revaluation Bill: One division. Voted against Government. Workman's Lien Bill: Two divisions. Voted once against Government; voted once with. Land for Settlement Bill: One division. Voted against Government.