6

nearly doubled. Pressing applications have been received from nearly eVcfy Department of the Public Service, calling the attention of the Government to the extraordinary increase of the cost of living, and the difficulty of retaining the serviees of the present- holders of subordinate offices on the existing scale of remuneration, when those employed in other pursuits are so exceedingly well paid and are enabled from their savings to make comfortable provisions for the future. Looking, therefore, to the probability that the more meritorious and experienced officers' may be induced to leave the Services of the Government, unless some addition be made to the present rates of salary, it will be consistent with a proper regard to the public interests, in a time of great prosperity, to satisfy the urgent claims which have been made for a fitting remuneration of those employed in the public service of the Colony. I have made no addition to the Estimates on this account, as I prefer leaving these claims to the justice of the House. The proprotion which the General charges, as shewn in the Estimates,- bear to the ilet ordinary Revenue of Customs is as Ito 2 J nearly, instead of Ito 3. It is evident, therefore, that instead of the propcrtion of the Customs' Revenues at present paid to the Provinces •being increased, it will be necessary to decrease it, unless a portion of the General charges especially those on account of the part-maintenances of Hospitals and other aboriginal expenses not included in the civil List, should be made a charge on the General Land Fund of the Colony. On reference to the Estimates it will be found, that the sum of £2,223 15s. has been included for the land purchase Department, It was proposed to increase the cost of this Department considerably. At present, however, nothing can be gained by unusual exertions on the part of the Government to hasten the extinguishment of the Aboriginal Titles to land. The native mind is disturbed by the extent of territory which has lately been added to, the Crown Demesne, and the Commissioner is of opinion that these feelings of aiarm should be allowed to subside by abstaining for a time from active liegociations. A portion of the purchase money for native lands, partly situated in the Province of Canterbury and obtained by the Government in the month of August, 1853, equivalent to that portion of the lands belonging to the Province of Canterbury, is ultimately to be paid from the Land Fund of the Province of Canterbury into the Land Fund Chest at Nelson. I propose at once adjusting this claim out of the large proceeds of Land Sales now lying in the General Treasury at Canterbury, and to devote the sum payable into the Nelson Chest, in part payment of the expense of completing the extinction of the Native Titles to lands in .the Province of Nelson. The contributions towards the expence of the "Nelson" steamer, which have been guaranteed by the Provincial Governments, will be placed on the Supplementary Estimates as soon as the House has signified its wish that the amount should be defrayed out of the General Funds of the Colony. I have called upon the Commissioner of Crown Lands, at Wellington, to furnish a full report on the arrangements made in concurrence with the New Zealand Company's Agent, for the purchase of Scott's grant, by which Debentures for the sum of £3675 165., bearing interest at the rate of eight per cent., have been issued to the Trustees of Scott's Estate. It having been left for future adjustment whether the Debentures should be a charge on the Colonial Revenues of New Zealand, or form a deduction from the New Zealand Company's Debt. The interest of these Debentures is borne on the estimates ; and I am of opinion that until the question of debt is settled, it should be defrayed out of the Land Fund of the Pr'ovince of Wellington. A Despatch from the Secretary of State, dated 29th December, 1853, will he laid on the table of the House, together with one from Sir George Grey, in which his Excellency reported to the Home Government that in pursuance of instructions conveyed by Lord Grev ih his Despatch of the 19th of March, 1851, he had incurred an Expenditure of £10520 18s. lid., on account of the fulfilment of the contracts of the New Zealand Company towards "the \\ ellingtoti settlers ; and that he had called upon the Officer in charge of the Military Chest to advance to the Colonial Treasurer the sum of £7620 9s. Bd. part of that amount. On reference to the Secretary of State's Despatch it will he seen that Her Majesty's Government disown any liability on account of the advance of £7620 9s. Bd., and has directed, that one-sixth of the Land Revenue which may have accrued in the several New Zealand Company's Settlements, since the date of Sir George Grey's Despatch, and which may not have been absorbed by their current expenses, should be applied to the reinbursement of the CoTtimissariat Chest for this advance. 'there has also been laid on the fable of the HoiiSe a copy of the Despatch ei the Secretary of State, enquiring whether aiiy further payments have been made to the tner MiKtaty Chest, in reiftb-uffjetfierit of the advances which hatvg been made by Her Majesty'*