First, that the State should facilitate the occupation of outlying districts by the construction of public works, provided they may be expected to return a fair interest upon the expenditure. The proposals put forward some fifteen years ago, that the three Western lines should be connected with the Gulf of Carpentaria by a series of Land Grant Railways, were condemned by the sense of the community, which preferred to postpone their construction until it could be undertaken by the State. In pursuance of this policy all the railways are owned and managed by the State, which has recently protected itself against the danger of the construction of unprofitable lines under political pressure by an Act of Parliament under which, upon any fresh proposal, the local authorities affected may be required to give a guarantee that they will, for a period of years, should the earnings fail to reach a certain standard, make good half of the deficiency out of the rates. In the Western portions of the Colony, in which occupation has been retarded by the scarcity of water, the Government have also {79} incurred considerable expenditure in the successful provision of artesian water and in general works of conservation. Secondly, that the State may assist producers to dispose advantageously of their produce. Reference has been made to the contracts which the Government have entered into with the British India Company for the carriage of farm and dairy produce. They are now considering the advisability of assisting cattle-owners, whose resources are severely strained by the low prices which they obtain in London for their frozen meat. The principal cause of the low prices and the attitude of the Premier can be gathered from the following extract from the financial statement which he delivered in 1896:--