12. In connection with Sanitary Reform, the serious question of increased house accommodation for the population of Victoria is now engaging the attention of my Government. While every succeeding census has revealed a great increase in the population, there has not been a corresponding increase in the number of human habitations. Overcrowding in its worst form has consequently been the result; and the prevention of this evil will be dealt with in the proposed new Public Health Ordinance. However, as the true remedy is to be found chiefly in increased house accommodation for the labouring classes, it will be necessary to expand the City in a westerly direction as well as towards the East; and to create fresh building sites available for new tenements. Estimates will, therefore, be presented to you for certain additional works of reclamation; for the formation of new suburbs, and for the laying out of new streets in the Districts of Belcher's Bay and Causeway Bay.
13. As the hitherto existing system by which purchasers of Crown leaseholds have been able to evade their building obligations has led to a considerable area of land in and near the City remaining vacant, directions have been given that, in the future, no purchaser of a Crown allotment shall receive his lease until he shall have complied with the Conditions of the Sale, and expended the specified sum upon proper tenements. Moreover, in the villages of the Colony, the system of tenants-at-will (termed licensed squatters) whose tenures were terminable upon one month's notice, will be superseded by an improved system of small and inexpensive building leaseholds for seventy-five years. The inhabitants will thus gain that security for the investment of their money in suitable homes which was altogether wanting under their present Squatter's License, by which they were liable to eviction upon one month's notice. These measures will, it is expected, tend to stimulate the further erection of proper dwellings, and to relieve the present overcrowded condition of several quarters of the City.
14. On sanitary and other grounds I have come to the conclusion that the drainage of the marshy lands situated within the Race-Course in the Wong-nei Chung Valley is as much a work of necessity as the reclamation of Causeway Bay. A plan will, therefore, be laid before you for the drainage of these meadows and for
their conversion into a Public Park.
15. Adverting to other important public undertakings, which have received legislative sanction, I am glad to inform you that the Break-water at Causeway Bay, intended to form a harbour of refuge for the boat population during typhoons, has been satisfatorily completed within the amount originally estimated; that the Tai- tam Water-works are steadily progressing; as is also the extension of the Government Hospital, together with the new Lunatic Asylum; and that the erection of the new Central School will be commenced forthwith. The new Meteorological Observatory has been finished; and will, it is expected, prove of practical value to the maritime interests of commerce.