REPORT OF THE WELLINGTON RECLAIMED LAND BILL COMMITTEE.

Appendix to the Journals of the House of Representatives, 1871 Session I, H-01

11.—No. I.

REPORT OF THE WELLINGTON RECLAIMED LAND BILL COMMITTEE.

REPORT BROUGHT UP sth SEPTEMBER, 1871, AND ORDERED TO BE PRINTED.

WELLINGTON.

1871.

Extract from the Journals of the House of Representatives. TIIUBSDAY, TIIE 31ST DAY OE AUGUST, 1871. Ordered, That the Wellington Reclaimed Land Bill, 1871, be referred to a Select Committee, to consist of Mr. K*ynolds, Mr. Pearco, Mr. Bunny, Mr. Bradshaw, Mr. Curtis, Mr. Collins, Mr. O'Neill, the Hon. Mr. Hall, and the Mover, with power to call for persons and papers, and to report on to-morrow week. (Hon. Mr. Fitzherbert.) Friday, the Ist day op Septembeb, 1871. Ordered, That the name of Mr. Macandrew be added to the Select Committee on the Wellington Beclaimed Land Bill, 1871, and that three be the quorum of the Committee. (Hon. Mr. Fitzherbert.)

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The Select Committee to whom was referred the Wellington Reclaimed Land Bill have the honor to report that they have examined the Bill, and taken evidence thereon, a copy whereof is appended to this Report, and recommend that the Bill be passed, with the alterations, elisions, and amendments, shown in the amended copy attached to tins Report. William Fitzheebeet, oth September, 1871. Chairman.

.. ■ ■. . -■ , ■ . . ■ _ MINUTES OF PROCEEDINGS. Thursday, Ist September, 1871. The Committee met pursuant to notice. Pbesent: Mr. Bradshaw, Mr. O'Neill, Mr. Bunny, Mr. Pearce, Hon. Mr. Fitzherbert, Mr. Reynolds. The order of reference having been read, the Hon. Mr. Fitzherbert was elected Chairman of the Committee. Mr. Bunny being requested to make a statement of the whole transactions relative to the sale of the Reclaimed Land, put in a statement, which is copied below. 12th August, 1871. —At a meeting of the City Council held this day, Councillor Moss gave notice of motion on Reclaimed Land. 19//;. —At a meeting of the City Council held this day, on the motion of Councillor Moss, seconded by Councillor Mills, it was resolved, " That, in the opinion of this Council, an attempt should be made to acquire the Reclaimed Land and the Wharf for the City of Wellington; and, with this object in view, the Clerk be instructed to write to His Honor the Superintendent, asking if the Provincial Government is willing to treat with the Corporation for the sale of these properties." Letter No. 1. —Copy of Letter from Town Clerk to the Superintendent. Sib,— City Council Chambers, Wellington, 22nd May, 1871. By instructions of this Council, I have the honor to enclose copy of a resolution passed at last meeting regarding the Reclaimed Land and Wharf. The Council will be glad to hear from you as soon as convenient whether this proposal is likely to be entertained by the Provincial Government. I have, &c, J. Rigg, His Honor the Superintendent. Town Clerk. " Resolved, That, in the opinion of this Council, an attempt should be made to acquire the Reclaimed Land and the Wharf for the City of Wellington ; and, with this object in view, the Clerk be instructed to write to His Honor the Superintendent, asking if the Provincial Government ia willing to treat with the Corporation for the sale of these properties." Answer to Letter No. 1. —Copy of Letter from Superintendent to Town Clerk. Sic, — Superintendent's Office, Wellington) 23rd May. I have the honor to acknowledge the receipt of your letter of the 22nd instant, enclosing copy o£a resolution passed by the City Council at its last meeting, relative to its acquiring the Reclaimed Land and Wharf. In reply, I beg to state that the Provincial Government are willing to treat with the City Corporation for the sale of those properties, and to suggest that the proposals of the Council be made as early as possible, in order that they may be laid before the Provincial Council at its next meeting, for the despatch of business, on the 6th of next month. I have, &c, William Fitzhebbebt, Superintendent. 2nd June. —At a meeting of the City Council held this day, regarding the letter of the Superintendent with reference to the Reclaimed Land, it was moved by Councillor Borlase, seconded by Councillor Mills, " That a Committee be appointed to confer with the Government in the matter; such Committee to consist of the Mayor, Councillors Mills, Plimmer, Moss, Ramie—three to be a quorum."

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Letter No. 2.—Copy of Letter from Town Clerk to the Superintendent. Sic, — City Council Chambers, sth June, 1871. Eeferring to my letter of the 22nd May last, I have the honor to inquire when it will be convenient for your Honor to receive a deputation from this Council, consisting of His Worship the Mayor, and Councillors Mills, Moss, Plimmer, and Eainie, regarding the Reclaimed Laud. I have, &c, J. Riqg, His Honor the Superintendent, "Wellington. Town Clerk. Answer to Letter No. 2.—Copy of Letter from Provincial Secretary's Office to Town Clerk. Sic, — Provincial Secretary's Office, sth June, 1871. In reply to your letter of this day's date, addresse.d to His Honor the Superintendent, I write to say that His Honor will be happy to receive the deputation named in your letter on Wednesday, the 7th instant, at 12 o'clock noon. I have, &c, Heney Btjnnt, J. Rigg, Town Clerk. Provincial Secretary. 9th June. —At a meeting of the City Council, the Sub-committee appointed on the 2ad June brought up the following report:— The Committee appointed at last meeting, consisting of the Mayor, and Councillors Mills, Mosa, Plimmer, and Ramie, to confer with the Provincial Government regarding the Reclaimed Land, had an interview with His Honor the Superintendent on Wednesday last, when the Committee was informed that the Government is willing to sell the Reclaimed Land (reserving a block of about 160 feet square for the erection of public offices) for £30,000, and the Wharf and Queen's Store for a similar amount, and would use its influence to get the General Government to allow the money to remain at the same rate of interest as at present, say 6 per cent. Although the Superintendent considers the amount a very low estimate, the Government is nevertheless open to an offer, and, in the event of no arrangement being come to, intends at once to utilize the land, either by materially lowering the present price and selling it on terms of deferred payments, or leasing it in lots for a term of years. Tour Committee, after carefully considering the whole question, is of opinion that the Corporation should offer £50,000 for the properties, namely, the Reclaimed Land, the Wharf, and Queen's Store. The Committee were all agreed excepting Mr. Plimmer. Wellington, 9th June, 1871. J. Dbansfield. On the motion of Councillor Moss, seconded by Councillor Mills, it was resolved, ': That the Mayor be hereby authorized by the Council to offer to the Provincial Government the sum of £50,000 for the Wharf, the Queen's Bonded Store, and the Reclaimed Land, allowing the Government to retain a block not exceeding 160 feet square for the erection of public offices." 23rd June. —At a meeting of the City Council held this day, the Mayor stated that ho had an interview, along with His Honor the Superintendent, with the Hon. the Minister of Justice, who expressed a private opinion that there would be no difficulty in dealing as proposed with the Reclaimed Land, viz., to transfer the debt of £31,000, owing by the Provincial Government of Wellington, to the Corporation of the City of Wellington. Letter No. 3. —Copy of Letter to the Provincial Secretary from Town Clerk. Sic,— City Council Chambers, 10th June, 1871. I have the honor to enclose copy of a resolution passed by the Council at its meeting yesterday, and to inquire when it will be convenient for His Honor the Superintendent to see His Worship the Mayor on the subject. I have, &c, H. Bunny, Esq., J. Rigg, Provincial Secretary, Wellington. Town Clerk. " Resolved, That the Mayor is hereby authorized by the Council to offer the Provincial Government the sum of (£50,000) fifty thousand pounds for the Wharf, the Queen's Bonded Store, and Reclaimed Land, allowing the Government to retain a block not exceeding 160 feet square, for the erection of public offices." Copy of Letter from Provincial Secretary's Office, in answer to Letter No. 3. . . Sic, — Superintendent's Office, 14th June, 1871. In reply to the communication received from the Town Clerk, under date the 10th June, accompanied by a copy of a resolution passed by the Town Council, and to the verbal communication of your Worship made this day to myself and Messrs. Bunny and Halcombe, Members of the Provincial Executive, to the effect that you then made, officially and personally, an offer to purchase the Reclaimed Land, Wharf, and Warehouse, in terms of the resolution above referred to, I beg to state that I accept, on behalf of the Province, the offer thus made, subject to arrangement for payment of the amount of the purchase money. I have, &c, William Fitzheebebt, Superintendent. Copy of Resolutions passed by the Provincial Government, 28th June. " Resolved, Whereas negotiations have lately been carried on between the Provincial Government of the one part, and the Municipal Corporation of the City of Wellington of the other part, for the sale and transfer to the latter of the Reclaimed Land, except such portion thereof as is retained by the Provincial Government for the erection of public offices, the Government Wharf, and the Government

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Bonded Store : Now it is hereby resolved that His Honor the Superintendent be requested to cause a Bill to be introduced into the General Assembly at its next sitting, authorizing him, with the assent of his Executive Council, and subject to the rights of the General Government in regard to the same, to convey and transfer the same to the said Corporation as part of the corporate property, subject to the following conditions : — 1. The Corporation thenceforth to pay the interest charged against the revenues of the Province of Wellington upon the sum of £31,000, forming part of the consolidated debt of the Colony, in respect of moneys advanced to and expended by the Province in reclaiming the said Eeclaimed Land, and to indemnify the Provincial Government and revenues against any claim arising from such charge. 2. The due payment of such interest to be primarily charged upon any revenues arising from the said Eeclaimed Land. 3. The Corporation to pay over to the General Government all moneys, other than rent or interest moneys, received by them upon the alienation of any part of the said Reclaimed Land, so long as any part of the said sum of £31,000 remains due. 4. The Corporation to pay to the Superintendent, on behalf of the Province, in respect of the said Wharf and Bonded Store, the sum of £19,000, to be appropriated and applied as part of the revenues of the Province. 5. The Corporation to be empowered to raise the said sum of £19,000 by means of debentures, primarily charged upon the revenues arising from the said Wharf and Bonded Store. G. Due provision to be made for the formation of sinking funds, to be applied in payment of the principal moneys charged upon the Reclaimed Land, and owing upon the debentures to be issued in respect of the Wharf and Bonded Store. 7. The Bill to contain all other provisions necessary for carrying into effect the foregoing resolution according to its true intent and spirit. Copy of Letter from the Provincial Secretary's Office to the City Council. Sir, — Provincial Secretary's Office, sth July. The Provincial Council having, by resolution, requested His Honor the Superintendent to apply to the General Assembly for an Act authorizing sale by the Provincial Government of the Eeclaimed Land (excepting the reserve for public buildings), Wharf, and Queen's Warehouse to the Municipality of Wellington, I write to inform you that such Bill will be brought into the General Assembly as early as possible, so that the purchase may be completed without delay ; and I would suggest that the City Corporation should at once make arrangements for the payment of the £19,000 as soon as the Bill should have passed the General Assembly. I have, &c, Henry Bitnnt, Provincial Secretary. 7th July, —At a meeting of the City Council held this day, the Mayor stated that, referring to the above letter, it was his intention to call for tenders for the conditional purchase of £20,000 of debentures, which would be submitted to the next meeting of the Council. Copy of Advertisement above referred to. " Tenders will be received at the office of the Municipal Corporation, Wellington, up to one o'clock p.m. of the 20th instant, for the conditional purchase of Debentures of the Corporation for £20,000, to be issued on the passing of an Act of the General Assembly at its next Session. All particulars can be ascertained on application to the Mayor. " J. RIGG, " Wellington 11th July, 1871." " Town Clerk. With leave of the Council, Councillor Plimmer withdrew the notices of motion Nos. 29 and 30, regarding the purchase of the Reclaimed Land. At a meeting of the City Council held this day, the Mayor read the following tender from Mr. Bridges: — Sir,— Wellington, 20th July, 1871. T am willing to take the whole, but not any less portion, of the debentures for £20,000, for which tenders are called for, conditional on the passing of an Act of the General Assembly at its next Session, provided they are issued in terms not inconsistent with the following, and that there should be nothing in the proposed Act nor in any other Act of the General Assembly, passed during the approaching Session, opposed to such conditions : —The debentures to be for sums of one hundred and five hundred pounds, for a term of years not exceeding ten, bearing interest at the rate of eight per cent, per annum, payable half-yearly, and for which coupons be attached ; principal and interest of a moiety to be made payable at Sydney, N.S.W., if required. A sinking fund of not less than ten per cent., towards repayment, to be provided for by the Act. Principal, interest, and sinking fund to be secured by a first charge, by Act of General Assembly, on the Queen's Wharf and Bonded Store ; a charge of the like nature on the Reclaimed Land, which is to be transferred from the Provincial Government to the Corporation, subject to the existing debt of the General Government; and a charge of a like nature on the rates of the Corporation. This tender is not to be binding unless the proposed Act shall in all respects be satisfactory to me. I have, &c, His Worship the Mayor. J. Bridges. Councillor Ramie proposed, as an amendment, That the tender of Mr. Bridges be accepted, on the words " and a charge of a like nature on the rates of the Corporation" being struck out, which was carried. Ayes —Eainie, Moss, Dransfield, Mayor (casting vote). Noes —Miller, Quin, Carpenter. 2

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Letter No. 5. —Copy of Letter to Mr Bridges from Town Clerk, concerning his Tender. Sic, — City Council Chamber, 22nd July, 1871. I have the honor to acknowledge receipt of your tender for £20,000 debentures, and to inform you that the same has been accepted *j the Council on the following words, viz., " and a charge of a like nature on the rates of the Corporation," being struck off. If you adhere to your tender with this alteration, please inform His Worship the Mayor or myself at your earliest convenience. I have, &c, J. Riog, J. Bridges, Esq. Town Clerk. Answer to Letter No. s.—Copy of Letter to Town Clerk from Mr. Bridges. Sic,— Wellington, 29th July, 1871. In reply to your letter of the 22nd inst., in which you inform me that my tender for £20,000 debentures has been accepted .by the Corporation on condition of my making a certain alteration in the conditions, I beg to state that I must decline making such alteration, and conclude, therefore, that my tender will not be accepted. I have, &c, The Town Clerk. J. Bbidges. Mr Allan here appeared on behalf of certain opponents to the Bill, but was unable to state precisely for whom, but was of opinion that it was on behalf of those signing the petition lately presented against the Bill. Mr. Plimmer was one of his clients. In answer to certain questions from the Chairman, he stated, that having only been recently engaged for the case, he was not prepared to state the points on which he would feel it his duty to oppose the Bill. The Committee then adjourned until Monday, 2 p.m., to which meeting the following persons were to be summoned : —Mr. Bridges, Mr. Dransfield, Mr. Plimmer, and the Town Clerk.

Tuesday, 4tu Septembek, 1871. The Committee met pursuant to notice. PbESENT: Mr. Bradshaw, Mr. Macandrew, Mr. Bunny, Mr. O'Neill, Mr. Curtis, Mr. Pearce, Hon. Mr. Fitzherbert, Mr. Reynolds. The Hon. Mr. Fitzherbert, on account of indisposition, was excused from attendance, and Mr. Bunny was voted to the Chair. Mr. Plimmer here attended the Committee and handed in a written statement, which was read and is copied here below : Reasons why the Reclaimed Land Bill now before the Committee should not be allowed to pass. 1. That when Sir George Grey had the first land reclaimed in 1851, he considered that after paying back to the Government the money advanced by it, as first cost for reclamation, all the profits arising from the sales should belong to the City for education and permanent City improvements ; and he gave the surplus land, after having sold sufficient to recoup the Government, to endow a College. 2. That in Session VIII. of the Provincial Council, an Act was passed to amend and explain the Harbour Reserves Act of 1856 ; and clause 7 says, " The Superintendent is hereby authorized from time to time, as he may deem it expedient to do so, to raise by mortgage on the security of the land so granted to him as aforesaid, any sum of money he may require for reclaiming and rendering fit for occupation and sale any portion of such land, and for the erection of a wharf." 3. And to show that the proceeds were not to be used for any but local purposes, and that the Superintendent had no legal power to use the moneys or profits arising from the sales of these lands as general revenue of the Province, when a later Act was passed to empower him to borrow £25,000 on the unreclaimed land, it especially states that it is for the wharf, whereas if he could legally have used the moneys for anything else, this would be superfluous. 4. That the Bill now before the Committee does away with all restriction, and opens the road and gives power for speculation and spoliation. 5. That any mortgage upon the rates or City property except for municipal improvements absorbs the borrowing power of the Corporation, and thereby puts a stop to the erection of waterworks and drainage of the City, and will not only entail debt, which means rates on the inhabitants, but will keep the City in an unhealthy, unclean, and very unpleasant state. 6. That the resolution permitting the City Council to entertain the purchase of the Reclaimed Land and Queen's Wharf was only carried by a majority of one, although two of the members were members of the Provincial Council also, the one, Mr. Borlase, being Provincial Solicitor, the other Mr Dransfield, the Mayor, both having prejudged the question in the Provincial Council. The Mayor, in this transaction, would sell the birthright of the City for a mess of pottage ; and Mr. Borlase. the Provincial Solicitor, being interested in getting the money, never ought to have voted on the question at all. Even then it would not have been carried, had not the Mayor distinctly promised that the City rates or any ther property belonging to the City should in no way whatever be made responsible for the principal or interest of the £50,000 ; and I am authorized to state by some of that majority, that if the Bill does pass, and contains anything in it contrary to the spirit of the original agreement, that they will not be parties to the conclusion of the bargain. 7. That at the time the ex-Superintendent had power granted to him to deal with this land, there were no Municipal authorities, or probably the trust would have been confided to them, and the proceeds of it applied to their legitimate purposes. But when the Municipal Act came into operation,

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the Provincial authorities should have acted fairly, and produced a balance sheet, and a debtor and creditor account, stating fairly the outlay on the Reclaimed Land, and the proceeds of the sale of the same, and accounted for the profits to the Corporation. 8. That the City pays more than one third of the duties of the Province. That the public-house and auctioneers' licenses, Court and turnpike-gate fees, are great additions to the revenue, and the City receives no adequate benefit in return, so that the small sum of £5,000 or £6,000 advanced to commence the reclaiming of land was but a small portion of the revenue which had been paid by the City. 9. That the land already sold has realized a profit of more than £40,000, which, after paying for reclaiming the land in question, still leaves a balance to be accounted for of some £15,000. 10. That the Wharf belongs to the whole of the Province as the terminus of the principal roads of the same, and the City alone ought not to bear the expense of keeping it in repair, and rebuilding it when it becomes necessary to do so. I have had the opinion of the best authorities, that to put it in sound repair would take at least £4,000; and all agree that its whole structure, both of wood and iron, cannot last for more than ten or twelve yeara at the longest, when it will want rebuilding at a cost of £75,000. 11. That if the Reclaimed Land in question was sold at its present value, which I contend is not near so much as the General Government have advanced on it, and the proceeds put out at interest at 6 per cent, as a sinking fund, it would not at the end of twelve years be sufficient to erect a new Wharf similar to the present one, and the City would lose the whole of the £50,000. 12. That the City, except on the "Wharf, has had very little of the loans which make the Provincial debt spent in it, and yet contributes indirectly one-third of the interest on that debt; and as it is proposed that if the Province can secure the interest of the £31,000 from the City, the General Government will sanction the borrowing of £100,000 more, which the inhabitants of the City protest against, as they will have to pay one-third of the interest on that sum likewise, and will be the heaviest burdened people on the iftce of the globe. 13. That it is impossible that the Provincial Government, with a revenue less than one-half of its general requirements, can carry on and fulfil its functions, and that this Act is a last scramble for the only thing left, the City rates ; and that this City being the capital of the Colony, nothing afi'ecting its welfare ought to be styled merely local, but it ought to belong to the Colony as a whole, and as such be protected from spoliation even by the Provincial authorities. 14. That if the land in question were sold to private parties, it would immediately come under the Municipal Act, and would be rated for the benefit of the City; but as there have been no purchasers of any consequence lately, and as it takes more to pay the interest of the money on it than the sales amount to —the Provincial Government having lost, in four years, £12,000 —it is no wonder they want to part with the white elephant; but as they have had the benefit of former lots, so, in justice, they ought to bear the loss on the present lot. lam perfectly certain that the £31,000 will be a barrier to their selling it before the interest has eaten up all the principal; at the same time, if the city »nd suburbs were made a General Government district, and had their fair proportion of the capitation money as revenue, they would willingly contribute their portion of the interest of the public debt of the Province, and the Municipal Corporation, with a Mayor as Resident Magistrate, approved of by the General Government, would manage the local affairs of the city and suburbs far cheaper and better, and much more to the satisfaction of the citizens, without the interference of the Provincial authorities at all. The following questions and and answers then took place : — 1. Mr. Bunny, .] Whether during negotiations between Provincial Government and City authorities for sale and purchase of property in question, any one was omplojred by the Provincial Government to report on the state and condition of the wharf? -No; I never said any such thing. 2. I now ask Mr. Plimmer to state to the Committee what he said respecting a certain Mr. Brown, who he stated had been employed by the Provincial Government to report on the state of wharf ?—I said that Mr. Samuel Brown, the man that built the G-asworks, told me, that all the bolts were loose, the iron being too small for the holes —and, as I understood him to say, that he had been employed by the Provincial Government. Ido not know when or whether he was employed by the Provincial Government. 3. Do you intend to produce Mr. Brown to support what you say ?—I do not; but, if desirable, I will. The Committee then thanked those gentlemen who attended the Committee, on which they withdrew. The Committee having perused Mr. Plimmer's statement, and referred to " The Harbour Reserves Act, 1850," and Amendment Act of 1861, find that there is nothing to show that any portion of the Reclaimed Land was to become City property after the expenses of reclamation. Both Acts above referred to clearly show that any surplus was to be Provincial Revenue. On the motion of Mr. Macandrew, the following words were to be added to clause 1.: —" So much of this Act as relates to the issuing of debentures by the Corporation aforesaid, and to the vesting in the Superintendent of the piece of land described in the Third Schedule hereto, and to the disposal thereof, shall come into operation immediately on the passing hereof. The residue of this Act shall come into operation on payment by the Corporation aforesaid to the Superintendent for the time being of the Province of Wellington of the sum of twenty thousand pounds ; but if the said sum is not paid or satisfied within three months from the passing of this Act, the said residue of this Act shall not come into operation." On the motion of Mr. Bunny, the following words were inserted in clause 2, in lieu of the words after " Colony " in the 16th line to the end of the clause: —" Then after the Colony shall have been repaid all moneys due to it in respect of the moneys so advanced as aforesaid, and the Governor shall have declared by warrant under his hand that all such moneys have been repaid, then the mortgage hereby created in favour of the Colony shall pass from the Governor to the Superintendent,

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and be a security to the Province for all moneys which it may after the passing of the Act be called upon to pay on account of the said £31,000 as interest thereon, or for such interest and sinking fund as aforesaid, and the Superintendent shall then, on behalf of the Province, to the extent of such sums, have all the priorities and rights hereby invested in the Governor." On the motion of Mr. Bradshaw, it was resolved, That in clause 22 the words " Mayor and City of "Wellington shall " be inserted instead of the words " Corporation aforesaid may." gziij. ;)■;■ Mr. Bradshaw moved that the following be inserted as a new clause, No. 23 : —" The principal moneys secured by every debenture issued under this Act shall, when the same become payable, be a debt of the Corporation aforesaid to the holders for the time being of such debentures respectively; and the interest secured by every such debenture shall, when the same becomes payable, be a debt of the Corporation aforesaid to the holders for the time being of the coupon lor such interest respectively ; and every sum of money due by the Corporation aforesaid under this provision shall be recoverable by action against the Corporation aforesaid, aud payable out of any.mouevs from time to time applicable by law lor the general purposes of the Corporation aforesaid." The following division taking place : — Ayes, 4. Noes, 2. Mr. Bradshaw, Mr. Pearce, „ Curtis, ~ Reynolds. „ Macandrew, „ O'Neill. So it was resolved in the Affirmative. Clause added to the Bill. The Committee then adjourned.