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should be no exclusive privilege to the water frontage, but that it should be made a public quay, the sections were withdrawn from the map and marked as reserved.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.

Enclosure in No. 18.

To His Excellency Sir George Grey, K.C.B., Governor and Commander-in-Chief of New Zealand, the Petition of the undersigned Merchants and others, of Dunedin, in the Province of Otago showeth:

That the gold discoveries have caused a large influx of population to the Province. That the space in Dunedin available for business purposes has thereby become limited, and is not commensurate with the necessities of trade and the wants of the inhabitants.

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That to supply in some measure those wants, petitioners pray that your Excellency may cause the Government Reserve skirting the harbour, and lying between the Emigrants' Barracks and the new line of road to be made in continuation of Princes Street, to be let on lease (until required by the Government) from year to year, or on such other terms as the Provincial Government may deem advisable, for the purpose of storing timber, coals, and other things of a like nature. That whilst commerce would thus be facilitated, the revenue would be benefited.

That it is the practice of the Victorian Government to lease the reserves in Melbourne adjoining the river, where vessels discharge, for purposes similar to those before mentioned.

Your petitioners therefore respectfully solicit that your Excellency may be pleased to grant them similar advantages, and they will ever pray, &c.