2

In presenting a statement of the financial position of the Colony, it is necessary to refer to the receipts of the period subsequent to the 30th of September, 1853, and to the amount of expenditure maintained in carrying on the many important branches of the public service. I have accordingly directed a comprehensive statement of the whole of the receipts and Expenditure, of the Colony, for the period alluded to, to be prepared ; and it will be laid on the table of the House as soon as printed. Although the prosperity of the Colony is such that we might confidently trust on the increase of its revenues. I have not thought it advisable, in preparing the Estimates, to assume any increase of the ordinary revenue, over that estimated, for the year ending the 30th of September, 1854. It will be seen from the annexed statement—which for all practical purposes may be taken to be correct —that the estimated public balances, in hand on the 31st July last, were as follows :— At Auckland £35,671 Wellington 18,000 Canterbury 31,000 Nelson 600 Amounting altogether to £85,271 Deducting from this Balance the "Deposits unavailable," the New Zealand Company's Fourth, and the Loans to be repaid out of the first receipts of the Land Fund at Wellington, there remains the sum of £50,000 available for the Current Expenses of the Government. The net Revenue for the year, after deducting the costs of collection, is estimated at £146,315, and the Expenditure, exclusive of the costs of collection, at £37,329, —leaving a balance of receipts over expenditure of £108,986. If to this balance on the year now estimated for, be added the available balance on hand on the 31st of July last, there will be a total' sum of £159,067 unappropriated. Out of the unappropriated Balance of £159,067 it will, however, be necessary to set aside a considerable sum for future land purchases ; but I have not included any sum for this purpose in the Estimates, as I wish to take the recommendation of the House as to the amount. During the last twelve months large sums of money on this account have been disbursed ; but the late increase of the Land Deposits at Auckland has enabled the Government to complete the purchases without disarranging the finances of the Colony. I need not dwell on the benefits which arise to the country from the extension of the Public Demesne. Nothing indeed could have justified the Government, if it had overlooked the pressing necessity of extinguishing the native title to large tracts of lands in the vicinity of our settlements. Altogether the sums expended on this service during the last year amount to about £40,000. Five million acres of native lands at Otago have been purchased for £2,600. At Wellington about two million acres have been purchased at an expence of about £24,000, of which sum £18,000 have already been paid to the natives, and the liquidation of the balance provided for in yearly instalments, to be completed in the month of May, 1858. At Auckland £16,000 on this account have been expended. These extensive purchases have been made without any important increase of the Land Purchase Department; and so far from their having disarranged in any way the finances of the Colony, the Government has been able to fulfil the whole of the undertakings to which it was pledged in the Civil Secretary's Circular Letter of the Bth of August, 1853. For instance, at Auckland there as been paid into the Provincial Chest out of the General Revenues, on account of the three quarters ended the 30th of June last, the sum of £32,020 13s. 4d., including £5,690 12s. for Immigration purposes. The total appropriation of the Province for the whole year being £32,262 Is. 9d. the advances issued out of the General Chest on account of the year ending 30th September, 1854, exclusive of those for Immigration, will greatly exceed the sums required to meet the Provincial appropriations. At Wellington, the quarterly payments of two-thirds of the net Customs' Receipts averaged about £4,300 ; so that the sums paid into the Provincial Chest on the termination of the year in accordance with the terms of the Circular letter alluded to, will exceed £17,000. Estimating the Provincial Receipts from other sources of Revenue at £2,000, the balance of receipts in excess of the Provincial appropriation will be about £1,000.