B.—No. 2.

In Class 111. —"Law and Justice" —there is a considerable reduction in expenditure. On the face of the Estimates, there appears to be an increase of about £270 ; but when it is stated that items which last year amounted, under the heads of " Civil List " and " Permanent Charges," to £4,900, have been transferred to the class I am now considering, it will be seen there is a considerable reduction. From the amount of that reduction, £800 for Buildings, transferred to Class 1., has to be taken. The remainder is accounted for by many departmental savings; by reductions under the Lunatics and Juries Acts; and by its being no longer necessary to provide for the maintenance of the Maori convicts at Dunedin. In Class IV., the Eostal Department (proper) shows a reduction of over £6,000. This is principally accounted for by its not being necessary to provide during the present year for payments on account of the Suez service. The remittances already made leave a balance in the hands of the Imperial Post Office authorities, sufficient, it is computed, to meet the payments required during the year. The abolition of the Provincial Charges system enables a less vote to be taken for Contingencies, since it can be taken all in one amount. There are, besides, several important savings of a departmental nature, notwithstanding that the business of the Post Office is largely increasing. One important change in the Postal Estimates will be observed. This year, we take over on the Colonial side of the Estimates the sum for carriage of Inland Mails, last year charged to the Provinces. The amount, £23,400, is the charge of which we propose the Colony should relieve the Provinces. I may remark, since so much was said last Session as to what was really a " saving," and what was not entitled to be so called, that I must leave honorable Members very much to their own opinions on the subject. I take it that diminished expenditure may be broadly classed under two heads—one including those cases in which the same service is performed at a lessened cost; the other including those cases in which a service or office is no longer required, Dispensing with the services of a clerk comes under the latter head : its not being necessary to take a vote such as that for educational purposes, or for the Suez service (because of an over-payment on account of that service), comes under the former head. Between the two, there may be a great variety of cases in which it would be hard to decide how much belongs to economy, how much to natural circumstances. I say this, because I desire that honorable Members may not consider that, in briefly explaining the Estimates, I wish at all to fetter them in the exercise of their judgments as to what they should consider the nature of the several reductions in the expenditure. The Estimates for the Telegraph Department show an increase of £1,300; but considering the very large addition to the business of the Department— the number of new stations opened during the year, and which are to be opened —I presume that honorable Members will not consider the increase more than might have been anticipated. Some savings will be found in the Estimates for this Department; for example, the improved condition of the various lines renders possible a reduction of £1,000 in the amount for Linemen's travelling expenses. Class V., Customs, shows an increase of £1,800; which is accounted for by a sum of £2,500, set down for Manukau Lighthouse. In the Customs Department (proper) there is, on the whole, a small decrease in the proposed expenditure. The estimates, as they appear, include £600 for the salary of the head of the Department, hitherto defrayed out of Civil List. Class VI. —Under " Native," there is shown a saving of a few hundred pounds. My colleague who is at the head of the Department will give such explanations as may be needed respecting the items. In Class VIE, the total of votes under the head " Miscellaneous" shows a reduction of £4,600; but £600 of that sum is accounted for by the transfer of a vote to the Civil List. For the rest, I ask honorable Members to study this class of the Estimates. They will see, as might be expected under such a heading, that various new items of expenditure are proposed, and that several of the items which appeared last year are no longer required. I wish, however, to draw attention to one notable reduction of £2,500 in the item " Stationery." We believe we

Inland Mails Colonially charged : Provinces relieved, £23,400. What constitutes a " saving."

Explanation of Increase in Telegraph Department,

And Customs Department.

Miscellaneous.

Saving in cost of Stationery.

18

FINANCIAL STATEMENT.