A.—No. 1 SECTION II

No. 44.

No. 10. copy of DESPATCH fbom his grace the duke of Newcastle, k.g., to governor sir geobge GEET, K.C.B. Downing-street, 20th April, 1863. Sir,— , I referred for the consideration of the Lords of the Committee of Privy Council for Trade, a copy of the Act of your Government, No. 20, of 26th Victoria, " to establish Marine Boards for the general control and management of ports, pilots, lighthouses, and other matters relating to navigation, and to regulate port charges and other rates," and also a copy of the Act passed in the same Session, No. 22, of 26th Victoria, " to regulate steam vessels, and the boats and lights to be carried by seagoing vessels." I enclose for your information a copy of the reply which has been returned to that reference, and I have to instruct you to communicate this letter to ymir Responsible Advisers, requesting their attention to the observations of the Board of Trade, and the necessity of amending the Act No. 20, in some of the particulars pointed out by them. Her Majesty will not be advised to exercise the prerogative of disallowance in respect of the Act No. 22. But I should wish you to draw the attention of your Government to their Lordships' observations on this Act. I have, <fcc., Newcastle. Governor Sir George Grey, K.C.B.

Enclosure in No. 10. MR. FABEEE TO SIR F. EOGEES. Office of Committee of Privy Council for Trade, Whitehall, 9th April, 1863. Sir,— I am directed by the Lords of the Committee of Privy Council for Trade to acknowledge the receipt of your Letter of the 30th ultimo, enclosing Copies of two Acts passed by the Legislature of New Zealand, and at the same time asking if their Lordships see any reason why these Acts should not be left in operation. With reference to the " Marine Board Act, 1862," No. 20, my Lords are of opinion that it will not be desirable to leave it to its operation without further communication with the Colony, for the reasons following : — Section 3, as explained by the Memorandum which accompanies the Act, is intended to give to the Colonial Government the power of altering the rules of the Imperial Act relating to the Registration of Colonial-built Ships. It is not stated what alterations are contemplated, or what the difficulties are which it is intended to remove. If these points were explained, steps might perhaps be taken under the Imperial Act as it stands to meet the views of the Colonial Government. But however this may be, it is clear that a general power to alter the Rules relating to the Registration of Colonial Ships could not be sanctioned by Her Majesty's Government, even if such alteration were allowed by the Imperial Act. The Registration and Measurement of £ea-going British Vessels, wherever built, is a matter of Imperial concern, both as regards the mode of transferring and dealing with the Ships and also as regards their right to use the British Flag, and no alteration in the Rules for these purposes contained in the Imperial Act should be made except by the authority of the Imperial Government. Section 60, which refers to the same subject, appears to their Lordships to require modification for the same reasons. Sections 11 to 22 create a very stringent system of compulsory Pilotage in every Port in the Colony. My Lords think it right to point out that whilst Her Majesty's Government can scarcely require in the Colonies the abandonment of a system which is still in force in some Ports of the United Kingdom ; yet that compulsory Pilotage is objectionable in principle, and that all steps recently taken by the Legislature of this country on the subject have tended towards its abolition. It is unjust to compel a Ship to pay for a Pilot when she does not require one, and it is inexpedient to take the charge of a Ship out of the hands of those who are most interested in her safe management. The system of compulsory Pilotage is also further open to the grave objection, that if a collision happens whilst the Ship is in charge of a Pilot, persons injured by reason of such collision can obtain no compensation. The argument in favour of compulsory Pilotage is that without such a system the supply of Pilots would be inadequate. But the experience both of large and small Ports in this Country, shows that an efficient Staff of Pilots can be kept up without interference with the ordinary laws of supply and demand.

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PAPEES EELATING TO