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rights to take water from many of the principal sources of supply; but it is hoped, by carefully guarding in future against the issue of rights to large supplies of water, and through the gradual lapsing of rights in respect to which the conditions have not been fulfilled, that in course of time this necessary accessory to the development of the resources of the colony will ultimately become more available for use by the public generally. From the annexed tables it will be seen that the total sum expended last year on works under the head of " Development of Goldfields" was £10,508, with liabilities amounting to £29,910, and we propose to ask for a vote of £44,637 for the current year. PURCHASE OF NATIVE LANDS. The area of Native land acquired during the past financial year was, as mentioned in the Financial Statement, 335,000 acres, a considerable portion of which is situated within the territory known as the King-country, and adjacent to the North Island Main Trunk Railway. This land will be thrown open for settlement early in next year. Full details of the various purchases will be found in Parliamentary Paper G.-3, presented to both Houses on 22nd October last, under the provisions of " The Native Land Purchases Act, 1892." The amount voted under the Native Lands Purchase Account last year was £163,976, and out of this amount £129,000 was expended, including £ for roads and surveys. This year we ask for a vote of £60,500, and in respect to the purchase of Native lands from this time forward, the Land Purchase Officers will be instructed not to purchase land from any Native unless he has more than sufficient land left to provide for maintenance. TELEGRAPH EXTENSION. The vote obtained last year under this head was £36,500, and the expenditure during the year was £36,791, including the purchase of 40 knots of submarine cable. The more important telegraph -lines constructed were those from Whangarei to Poroti, Hikurangi to Whakapara, Mangapai to Maungakaramea, Hukerenui, Ormond to Waimate, Herbertville to Wimbledon, Maharahara, Pahiatua to Mangahao, Ballance-Ngaturi-Makuri, Ohingaiti to Mangaweka, Hende's Ferry to Okarito, Burkes Pass to Tekapo, Cambrian's to Beck's, Skipper's to Bullendale; and additional wire-accommodation as follows : Napier to Wairoa, Greymouth to Reefton, Lumsden to Queenstown, Oarnaru to Georgetown, Springfield to BeaJey, and Pukerau to Waipahi. Additional wires are also being provided between Napier and Wanganui, Wanganui and New Plymouth, and Blenheim and Dunedin. Telephone exchanges have been established at M'asterton and Gisborne, and a branch exchange at Hastings. The number of new subscribers to the exchange systems of the colony was 604. The vote proposed for the current year is £30,835, which provides for additions to existing exchanges, completion of work in hand, additional wires from Auckland to Whangarei, Clyde to Cromwell, and Wakapuaka to Belgrove, and telephone extensions, the more important of which are—Onehunga to Mangere, Paraparaumu to Waikanae, Kaeo to Totara North, Rawene to Omanaia, Bannockburn to Nevis, Eketahuna to Hukanui, Dannevirke to Weber and Titree, Fowler's to Rangiwahia, Hokonui to Hedgehope, and a portion of proposed line from New Plymouth to Auckland, via Mokau and Otorohanga. PUBLIC BUILDINGS. Our expenditure on public buildings still continues heavy, and, with the increase of population that is taking place, and the growth of settlement, and the necessity of replacing many of our present wooden buildings with others of more permanent materials, I see very little prospect of its growing lighter for some years to come. The expenditure last year was slightly less than the year

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