Copy of a Despatch from Governor Grey to Earl Grey. Government House, Auckland, March 24, 1849. (Received September 14, 1849.)

New Zealand Spectator and Cook's Strait Guardian, Volume VI, Issue 531, 4 September 1850, Page 3

Copy of a Despatch from Governor Grey to Earl Grey. Government House, Auckland, March 24, 1849. (Received September 14, 1849.)

My Lord, * I feel much concern at having to transmit to your Lordship the accompanying letter, which has been forwarded to me by Lieute-nant-Governor Eyre, having been addressed to him upon the 20th of February last, on be-

half of the New Zealand Compauy, by their Principal Agent. 2. The questions raised in this letter are so important, that I think it right to lose no time in bringing under your Lordship's notice the relative positions which are at present occupied by the Government and the New Zealand Company in the Province of New Munster. 3. In all other Crown colonies in this portion of the globe, the adraiuistration of the Waste Lands of the Crown is vested in the Local Government, who are only authorized to dispose of them in conformity either with an Act of Parliament, or in compliance with the terms of instructions issued direct from the Crown to the Governor. The money received from the sale of these Waste Lands of the Crown is, in the first instance, paid into the Treasury. The rule in New Zealand has then hitherto been, that at least 50 per cent, of the proceeds of the land sales should be annually applied to the purposes of emigration ; and, that the,* remaining 50 per cenjt. might, ifsuch application of it was found necessary, be expended for the benefit of the natives, for the expenses of the , survey department, or for the execution of public works. 4. The land iund being thus treated as public revenue, detailed accounts of the mode in which it was expended have been laid before the Legislature, the salaries of the officers paid from this source of revenue have been voted by the same body, and the Legislature have, in point of fact, exercised almost the same control over it as over any other portion of the revenue ; because, if they were dissatisfied with the manner in which the land fund was appropriated, they might refuse to vote sums for such other purposes as the Government applied for. 5. Under these regulations, no power is left to the Government to appropriate land in auy other manner than that prescribed by law ; their expenditure of the land fund is also brought under the supervision and control of the Legislature ; and as the Legislative body votes the various amounts which are to be expended in public improvements, or for any of the purposes to which the laud fund is applied, the great advantage is gained of securing the application of the sources of the public income, namely, the ordinary revenue and the land fund, by the same authority, so that they are expended with a unity of purpose, being applied in aid of each other and for the promo- . tioa of the same -objects.- — . ~ • 6. Under the existing arrangements with the New Zealand Company, as detailed in. the 10 and 11 Vie. c. 112, which it is now generally understood here the New Zealand Company are about to apply to have prolonged for a'period of several years, the power is left to the Company (provided they do not sell lands for any less consideration than the sum of 20s. per acre) to dispose of lands according to any system or regulation they may think proper to adopt ; and they are then authorized — ba» vi ig paid 10s. an acre (not 50 per cent, of the whole funds raised) out of the proceeds of | all lands sold by them to the Emigration Fund — to apply the residue of the proceeds of these land sales in the payment of interest and dividends on their capital stock, and for nearly the same purposes as those to which the Government of a colony is usually authorized to apply such portion of the land fund, but with this marked difference — that they are not bound to publish any accounts in the colony of the modes in which these funds may be disposed of ; nor can the Executive Government or the Local Legislature exercise the usual control over the manner in which these funds are applied, or direct the purposes to which they are to be devoted ; nor are the salaries of the officers who may be paid out of this portion of the local revenue in any way brought under the control of the Executive Government or of the Legislature. 7. The practical effect of this on New Zealand will be that the Loral Government will be deprived of that source of revenue to which it ought chiefly to look for the purpose of benefiting the native race, and for the construction of public works' on which they should be employed. It will also have removed from under its control the means of purchasing from the natives those tracts of land, the acquisition of which it may deem necessary either for the immediate wants of the settlers, or to prevent the recurrence of difficulties, 1 such as have arisen in the valley of the Wairarapa. And whilst deprived of these actually essential means of governing and controlling the native race, it will be held responsible for the peace and welfare of the country ; that is, with all the responsibility thrown upon it, it will be deprived of powers essential to the efficient conduct of a government. 8. On the other hand, the New Zealand Company, through their agents in the colony, would have under their control a revenue which is likely considerably to exceed the aggregate amount of the revenue from other sources in the colony, and would virtually be in possession of an uncontrolled power of expending public funds greater thin has ever

been exercised by any Colonial Government, and would in no manner be bound to expend these sums in concord with the Legislature, to whom they are in so way responsible. In short, the New Zealand Company, through its agents, will have the greater share of the power and none of the responsibility. 9. I fear also that the Company, in order to save an apparent expense, might be induced to continue to endeavour to compel the Government to adopt the principles contained in the agent's letter to Lieutenant- Governor Eyre, of 20th of February ; principles which could not, 1 am satisfied, be carried out without giving rise to a war, for causing which no responsibility would rest upon the Mew Zealand Company, nor would they be liable for the heavy expenses which it would occasion. 10. Your Lordship will, I think, see that the present arrangement with the New Zealand Company creates a state of things which I must cause confusion and disaster. It migbt have answered as a temporary arrangement for the purpose of winding up the affairs of the Ne"w Zealand Company, who acted in entire accordance with the Government ; but the welfare and peace of a country ought not to be left dependent upon the fortuitous occurrence of a state of things which cannot be expected to continue uninterruptedly. Moreover, such an arrangement would, under the most favourable circumstances, create great discontent, not only in these settlements but in the neighbouring colonies, as I think it might be regarded as a very dangerous precedent to hand over the land fund of a colony to entirely irresponsible persons. 11. Upon the whole 1 think that nothing could be more conducive to the future welfare of this colony than to allow the Crown Lands to be sold here as in the other Australian settlements, by public competition ; to cause the proceeds of the sales of those lands to be paid, in the usual manner, into the public Treasury ; and then to allow 50 per cent, of these proceeds, after deducting the cost of the purchase and administration of the Waste Lands of the Crown, to be devoted to the purposes of emigration ; 25 per cent, to be expended for the benefit of the natives, and 25 per cent, to be expended upon public works in those proviuces where the amount of the native population might render such an appropriation of the land revenue necessary ; it being further provided that the last amount of 25 per cent, should be expended in aid of the object to which it was devoted,' in such a manner a$ the Legislature of each Province, might direct! I have been particular in stating that it should be required that 25 per cent, of the land fund should be spent upon public works, because this colony differs fronybe Australian settlements in having in it alarge number of uative labourers, who are at once controlled and improved by having employment afforded them upon the public works. If yoir Lordship would sanction such arrangements as I have above proposed, I am sure they would work well for a long series of years ; and whilst they would eminently promote the interests of the colony, they would, I think, be in all respects satisfactory to the European and native populations. 12. I should mention to your Lordship, regarding this tract of territory which the New Zealand Company, through their agent, contend should have been taken from the natives without their consent, that its area comprehends several millions of acres ; and that the sum to be paid for the purchase of any rights which the natives might have over any portion of this territory, except the small reserves kept fot their use, was only £2000 : au amount which the late Colonel Wakefield concurred with me in thinking was a fair and just amount to give the natives. 13. To act upon the principle that, where the natives are so weak that they cannot defeud their lands, the Government should assert what the New Zealand Company now represent as the rights of the Crown, and forcibly take the natives' lands from them ; and again to refrain from asserting the so-termed rights of the Crown, when the natives are so strong that they could protect themselves, would certainly acquire for the Government the contempt as well as the distrust of the whole native population ; and that especially | when, as in the present case, the natives made no factious opposition to the occupation of their lands, but cheerfully yielded all their rights for that sum which, without consulting their wishes, the Government had fixed as a just amount. I have, &c, (Signed) G. Grey. The Right Hon. Earl Grey, &c, &c, &c.