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Hl.—6

XVIII

intelligence and better methods in dealing with the question, until ultimately the desired end is. attained. The land-laws of the colony are in every way excellent, and adapted to the conditions and requirements of those who are desirous of occupying land, but it is essential that facilities should be given to go upon the land by opening means of communication with the chief centres and ports of this East Coast, in order that a greater number could avail themselves of the favourable terms upon which Crown lands can be acquired. A plea may be made that this district has a just, if not exceptional, claim upon the Government in the matter of roads, as it has not participated in the expenditure of the many millions of borrowed money in the construction of railways and other public works in more favoured parts of the colony, while it has contributed its quota in revenue to meet the interest-charges. It maybe mentioned here that, as a result of the recent visit of the Hon. Minister of Lands, negotiations are being made, under the Lands for Settlements Act, for the acquisition of some estates adjacent to Gisborne, with the view of subdividing and throwing them open for close settlement under the lease-in-perpetuity tenure. The lands offered are all served by good metalled roads, and are suitable as respects soil and locality for dairy-farms, orchards, and other industries. This forward step meets with general approval, and numbers are awaiting with eagerness the announcement that these lands have been acquired and are to be thrown open. It is also stated that the Paremata Block, situate near Tolaga Bay, is to be dealt with in a similar manner by the Eeceivers, appointed by the Validation Court. This is a fine estate, which, if cut up and settled as proposed, should be able to support a large number of families. If this is effected, other blocks now locked up and unprofitable at present will be dealt with, and the progress and prosperity of the East Coast will no longer be retarded, as it has been, by large areas of Native land lying waste and unutilised. As respects labour and the conditions of employment during the year, the chief features to record are that on two occasions there was a great dearth of work, that the difficulties were promptly met and dealt with as they arose, and that at present there cannot be said to be a scarcity of employment, though there is a sufficiency of labour here to meet ordinary requirements. In January of 1895 the first crisis arose, the names of no less than sixty-five men being registered as unemployed. The cause which may be assigned for this is the cessation of work on several large contracts for road-work. Immediate steps were taken to provide employment by engaging men for Government co-operative road-works, under the administration of the Lands and Survey Department. Before the close of the month most of the men were placed on work on the following roads: AwanuiHicks Bay, Ormond-Opotiki, and Mahaka. This relieved the temporary congestion, and matters so remained until May following, when the urgent claims of a large number of unemployed had to be met. From this date, and throughout the winter months until the end of September, fifty-eight men, of whom forty-two were married, were found employment at co-operative road-works in various localities. Ten men were also forwarded for work in Auckland Provincial District, being sent to Opuatia. Of this party, however, five declined to work for 6s. per day, saying they did not leave Gisborne to work for such wages, as they were accustomed to 7s. and Bs. per day. Their action certainly deprived the same number of men who were only too eager for employment from getting work on terms which would have been willingly accepted. This incident shows the necessity of some regulation applicable in such cases. In connection with co-operative works generally, it is urged that uniform conditions or rules be framed as to the mode of ballot, the obligations of mateship, the priority of engagements, and the preference (if any) to be given to local residents as against recent arrivals, and also of married men as against unmarried. The regulation issued this year as a condition of employment of married man on Government co-operative works, that one-half of the wages shall be retained to be paid over to the wife if applied for by her, has given general satisfaction. In no case has any married men objected to sign his consent to this condition. One other matter which may be brought under notice is the advisableness, when work is situate at a distance, that the sections of road given should be such as to find work for men for an extended number of working-days, as a set-off against the extra, cost of transport of provisions, &c. It is also desirable that some simple and effectual method be introduced in the settlement of minor disputes as to quantities and prices which sometimes arise in connection with work under this system. It may well be thought out if such matters might be referred for local arbitration. In other work there has been an intermittent briskness. The local bodies have spent considerable sums in road-works and draining, though for a few months past, for financial reasons, very little new work has been undertaken. About 8,000 acres of land have been felled and burned this season, affording employment to a large number. It may be mentioned that in some cases the co-operative system has been adopted by employers at this description of work, with satisfaction to themselves and the workers. During this winter it is anticipated that as large an area of bush will be felled. The grass-seed harvest this year is reported to be the best on record, and owing to favourable weather it was all saved. In cereals, those who have grown crops have had an abundant yield. One noticeable fact, indicating that agriculture has been a thriving industry, is the unusually large importations of farm implements and machinery of late. In pastoral pursuits the flockowners have had great encouragement from their wool-clips, and the enhanced price of this commodity. The establishment of a second freezing establishment at Gisborne has resulted to their advantage in the increased price given for sheep, and the benefit thereby has been distinctly felt all round. The erection of this establishment in our midst is certainly a notable event of the year, and demonstrates the growth and capabilities of this district more forcibly than any words. Besides finding work for a large number of tradesmen in its erection, the establishment gives continuous employment to about forty hands. In the building trade work has been moderately brisk throughout the year, and at present there are but few out of employment. There is a movement on foot to establish an industrial