The Commissioner of Crown Lands, Otago, to the Secretary for Crown Lands.

Sir,—

I have the honor to forward a Petition addressed to His Excellency the Governor by certain merchants and other inhabitants of Dunedin, praying that they may be allowed to rent the Government reserves abutting upon the harbour from year to year until the reserves are required by the Government. The land referred to by the petitioners was in the original survey of the Town of Dunedin laid off in sections, and ran some distance into the water below high water-mark. But as it was deemed advisable by the New Zealand Company that there should be no exclusive privilege to the water frontage, but that it should be made a public quay, the sections were withdrawn from the map and marked as reserved. Subsequently Mr. Mantell, the Commissioner of Crown Lands in Otago, selected a portion of the reserve, and recommended that it should be appropriated to the use of the Natives on their visits to Dunedin, an arrangement which I believe was sanctioned by His Excellency Sir George Grey. The Natives however never made use of the place, it being not suited to the purpose, but continued to land their produce at a small bay where the water is deeper, and upon which latter spot a stone house for their use has been erected by the General Government. A portion of the frontage reserve has been used by the Provincial Government for the erection of Immigrant Barracks, and for Police Barracks and offices. In all probability the whole of the reserve will be required by the Government for public purposes, as but few reserves have been made in Dunedin. In the meantime, and until the contemplated harbour improvements have been proceeded with, the increased traffic of the Provinces makes it absolutely necessary that the public should be allowed to use the reserve for landing timber and such like material. But in consequence of there being no rules for the guidance of the Commissioner of Crown Lands, disputes continually occur, and the Commissioner has continually to proceed against persons for the illegal occupation of Crown lands. I have therefore strongly to recommend that the reserves be let in sections not exceeding the eighth of an acre for a period not exceeding one year, and that the right to occupy be put up to auction at an upset price to be fixed by the Waste Land Board Should His Excellency deem it advisable to comply with the prayer of the memorialists, I have the honor to request instructions at the earliest possible date.