Moreover, in the opinion of the Attorney-General (a copy of which is enclosed) the lands to which the Bill exclusively refers—those on which the improvements have not been effected—are Crown lands, which, as such, the Provincial Council have no power to legislate upon. For the other lands, with respect to which the condition of improvement has been fulfilled, are excepted by the terms of the Bill. The Bill, therefore, in this view of the case, would be nugatory. This would be a sufficient reason, were there no other, for advising his Excellency to withhold his assent from it.

It appears to the Government that this question can only be effectually dealt with by the General Assembly. Fully recognising, then, its great importance to the Province of Otago, the Government propose to take the following course. Being aware that a different opinion from that just quoted as to the rights of the land purchasers in question is held by some professional gentlemen of considerable reputation in the colony, and considering it a necessary preliminary to any arrangement with the land purchasers, that their precise legal position in the matter, as well as that of the Crown, should be definitely ascertained, Government propose in the first instance to submit the decision of this legal question to the Supreme Court; and when the rights of the respective parties shall have been thus satisfactorily determined, to prepare such a measure for submission to the General Assembly at its next meeting as may appear best calculated to meet the exigencies of the case.

I have the honor to be,

Sir,

Your most obedient servant,

ALFRED DOMETT.

His Honor the Superintendent of Otago.

[COPY.]

It can hardly be said that it was not lawful for the Provincial Council to pass this Ordinance, as the 6th section expressly provides that it shall not “affect in any respect whatsoever the Waste Lands of the Crown.” But it is at least doubtful whether this provision does not render the Ordinance nugatory, and leave it nothing to operate upon. I am of opinion that such is the case.

The lands which the Ordinance professes to tax were sold subject to a certain condition. That condition has not been performed, and therefore the lands, it appears to me are Crown lands. As such the Provincial Council, could not pass any law affecting them, and moreover they are expressly excluded from the operation of the Ordinance.

(Signed) FREDK. WHITAKER.

9th Feb. 1863.

SUPERINTENDENT’S OFFICE,

Dunedin, 10th March, 1863.

To the Honorable

The COLONIAL SECRETARY.

Sir,—I have the honor to acknowledge the receipt of your letter of the 23rd ultimo, intimating that Ministers have advised His Excellency the Governor to withhold his assent to the “Unimproved Lands Bill, 1862,” on the stated grounds of the extreme amount of taxation thereby sought to be imposed, and of a doubt of their being any lands to tax, owing to the non-fulfilment of certain stipulated conditions in the purchase of lands, by which the lands in question have not ceased to be Crown Lands.

It is a subject of regret to this Government that, when according your approval of the Draft of the Bill on the 6th of December last, you did not at once assume the decided tone which your present letter adopts.

On the question of title I have, in explanation, to forward you a copy of the application signed by every purchaser of land under our Regulations. He is invariably spoken of as a “purchaser;” he receives a certificate entitling him to take possession; he deposits the purchase money; and is simply denied a Crown Grant until he has fulfilled his engagement to improve his purchase to the extent of forty shillings an acre.

Accepting this view of the case as the true one, it surely cannot be burdensome to tax those who decline to fulfil their engagements, at or below the current rate of interest. The amount of tax is fixed at 2s the acre, which is 5 per cent. for the money he has engaged to lay out, viz., 40s an acre.

In a point of such extreme importance to the Province, the Government are desirous of knowing what are the particular points to be submitted to the Supreme Court, and whether you have decided upon any particular case on which to try the issue, and in what form it is to be tried?

You observe that after certain points are settled by the Supreme Court, it is your intention to introduce a measure into the General Assembly to meet the exigencies of the case. I hope I am not to learn from this that such an action is to be taken without reference to the wishes of the people of this Province, expressed through the constituted authorities, the Superintendent and Provincial Council. The regulating of the sale of land has hitherto been considered a Provincial right, requiring the endorsement of the General Assembly, which provides against the depreciation of the Crown property. I am naturally very anxious upon this point.

You are aware that the sale of land in this Province has been for some months suspended in a great measure, in order to preserve the Provincial estate. The Provincial Council, fearing the possibility of some interference with the Act they had just passed, adopted a Resolution, at the instance of the Executive, praying in such a case the price might be raised to £2 per acre. This was recommended and adopted as an extreme measure, contrary to the judgment of both the Superintendent and Provincial Council, and, only adopted from the necessity of throwing the land open for settlement and providing funds to carry on the Government.

I now, with the advice and consent of my Executive, forward this Resolution. Driven by the stern necessities of the case, and though convinced that the blow struck will be fatal to the well being of our Province, I cannot do otherwise than recommend the sad alternative that the price of rural land be raised to £2 per acre.

I have, &c.,

J. RICHARDSON,

Superintendent.