8.—6.

so many important matters affecting the welfare of the country demanding the attention of the Government, however, that it has been found impossible to give effect to this wish. Many of the local bodies are financially in a very unsatisfactory state, and in order to assist them it has been decided to bring in a measure authorising them to levy rates upon Crown lands. From this source it is anticipated that they will receive about .£lO,OOO. POST AND TELEGEAPH SEEVICE. The staff of the Post and Telegraph Service is yearly increasing in numbers, j The service is now classified, and it seems to the Government that it is desirable to establish a permanent Appeal Board to enable the officers to submit reasonable complaints from time to time concerning their positions. I will submit a scheme to enable this to be done. Under it the service will elect one representative from themselves to sit on the Board, and the chief executive officer of the Post and Telegraph Branches respectively will be appointed by the Government to the Board. All appeals, after being dealt with by the Board, will be referred to the Postmaster-General, whose decision will be final. As the work of repairing and laying cables for the carrying-on of the ■ telegraphic business of the colony is yearly becoming of greater importance, it : has been decided to have a cable-steamer specially made, so that this work may be done more effectively and economically. The vessel will be so constructed as to enable it, when not engaged in work connected with the cables, to take the place of the " Hinemoa." It will be of greater tonnage than the "Hinemoa," and will be in every way more suited for cable-work than any of the present steamers, all of which it is proposed to dispose of. ASSESSMENT OF LAND. It is a matter for regret that since I last addressed you concerning the business of the Taxing Department the country has lost the services of a valuable and faithful officer by the death of the late Commissioner of Taxes, Mr. C. M. Crombie. r I do not propose to continue the triennial assessment of land, but m lieu j thereof I shall propose a much simpler scheme, under which an opportunity! will in the meantime be afforded for the redress of grievances which may exist under the present assessment. Thereafter particular districts of the colony will be assessed at such intervals as circumstances require. The change I intend to propose to the House will, I anticipate, result in a very large saving of expense to the country, and of worry and inconvenience to the taxpayers. The change will not affect the next collection of land-tax, as the present assessment has still a year to run. LAND-TAX ON NATIVE LANDS AND MOETGAGES. It is also my intention to bring under the operation of the land-tax all interests of Maoris in lands leased to Europeans, and mortgages belonging to Maoris secured upon land. ASSESSMENT OF BANKS. I shall also submit a proposal which will place on a more equitable footing than heretofore the taxation levied on the profits of the banks doing business in New Zealand. The proposal will be of the most reasonable nature, and will be brought forward not so much with the object of obtaining additional revenue as of more fairly adjusting the contributions by the various banks under the income-tax. lam of opinion that we should adjust our system of taxation so as to hold out inducements to banks to bring money into the colony for investment. ASSESSMENT OF FIEMS AND OTHEES. I have had under consideration a scheme, which I shall submit to the House, under which firms and individuals which have no representative in the colony in a position to make the annual income-tax return on behalf of the principals will be reached, and it is by the aid of the Customs Department that the income-tax payable by'these firms and persons will be collected.

Appeal Board to be established.

Special steamer for cable service.

Death of late Commissioner.

Triennial assessment discontinued.

Land-tax on Native lands and mortgages.

Taxation of banks.

Firms not represented in colony to be taxed.

XIII