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should be willing, in their regard for the interests of the Colony, to devote sufficient time for the purpose, I should recommend a bill for the reform of the Tariff, on the principle of simplification as laid down in the Report of a, Select Committee of the House of Representatives; and a bill to prevent bribery and treating at elections. In the measure which I shall submit to you for the appropriation of the Revenues, you will find adopted these two principles : First, that the portion allotted to the General Government has been carefully reduced to the minimum, not inconsistent with efficiency ; and secondly, that after deducting the same in proportionate shares from the amount raised in each Province respectively, the remainder becomes Provincial Revenue, subject to disposal by the Provincial authorities alone. In the estimates of general expenditure, you will find taken as guides the principles of the closest economy not inconsistent with efficiency, of no pay without work; of pay in proportion to labour and capacity j and of the devotion of the largest possible amount of money to purposes of practical utility for the people. In proposing a sum to meet the expenses incurred by the members of the Legislature through their performance of the most important of all services to the people, I have been guided by the liberal but, far from extravagant, scale which obtains in similar cases in the other colonies, and with regard to this subject I deem it right to express to you my opinion that it would be as impossible in New Zealand as it has been found in all other new countries to constitute an efficient Legislature in Session, without fully providing for the expenses of members. At the same time, I deem it inexpedient, considering the immaturity of this colony, that offices of honour and distinction, which in a great measure supply their own reward, should be made objects of desire to persons likely to be more influenced by pecuniary considerations. Before proceeding to a statement of my views as to the exercise of the powers vested solely in the Crown, I consider it my duty to state that in the present and immediate prospective composition of the Executive Government, I am in hopes that each province will find the means of securing attention to its peculiar wants and wishes; and I can assure you that so long as I shall have the honour of representing Her Majesty in this country, I shall be bent upon so exercising the authority entrusted to me as to recognize and act upon the principle that every province, more or less, has peculiar needs, arising from peculiar circumstances which call for special attention from the General Government. What such needs may be in the provinces of the South, the head of the Government will only be able to learn from the representatives of the provinces in the Assembly, and in particular from members of the Legislature who shall be advisers of the Governor in his Executive Council. But as respects Auckland, the information which I have been able to obtain by the residence of the General Government on the spot, enables me to lay down the following propositions as containing my views of fair policy towards that portion of the colony; first, that any question as to the seat of Government or place of meeting of the General Assembly, shall be with the ministers and their supporters an open question. That if at any time the seat of Government or the place of meeting of the General Assembly should be changed, the Province of Auckland shall have a Lieutenant-Governor, (subject to of New Zealand,) maintained at its own'cliarge, and exclusive powers of legislation, except on certain specified subjects. In such case, with a view to preserving intact the unity of the colony, certain questions (to be specified) affecting New Zealand as a whole, to be dealt with by laws to be from time to time passed by both Northern and Southern Legislatures, or by an Assembly or Convention of a certain number of members of both Legislatures. That in accordance with the recommendation of a Select Committee of the House of Representatives the Province of Auckland be relieved from bearing any portion of the New Zealand Company's debt, whilst, on the other hand, that Province shall bear the whole of any debt incurred for its exclusive advantage. In exercising the power of the Crown until prospective legislation shall take effect and complete Ministerial Responsibility shall be established, I shall always have in view the infusion of activity and vigour into the working of all the departments. These are principally, the Post-Office, the Administration of Customs, and the disposal of Waste Lands. With regard to the Post Office, I desire the utmost improvement of arrangements (and without delay) for insuring promptitude, order, safety, and punctuality. The means,must be, thoroughly efficient officers, and a new set of Regulations, which shall strictly specify their duties, and provide for their constant responsibility in the performance of them. lam of opinion that all the Post Offices should be placed under a really efficient Post-master General, to whom should also be entrusted the management of Steam Communication as far as that may be dependent on the General Government. In the administration of the Customs, such as determining ports of entry, sites of Custom Houses, and the appointment and removal of officers, I intend to be advised by the Provincial Governments, until the General Assembly shall have full authority to empower the Provincial Governments to manage the Customs administration.