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their own representatives ; and I think that in a country inhabited by so many various races as this, and where such difficult questions will constantly arise, the Crown should be able to guide such an Assembly by being certain of securing the presence in it of some of the most able and virtuous men in the country, without reference to their party views or to their holding office. 14. I have already in my Despatch No. 23, of the 15th March, 1849, which was laid before Parliament, stated in detail the grounds on which I justify the low rate of franchise adopted in this measure. Your Lordship will observe that I propose that the same amount which qualifies an elector should qualify a person to be returned as a member of the Council. I might justify this by the analogy of Scotland, where such a system has worked well; but there are additional reasons for adopting such a rule in a colony where frequently most able and deserving men are by no means rich. In fact, my object throughout has been to leave to the colonists the most unlimited power of selecting those men whom they may judge to be most able and the most fitted to represent their interests; and to the Crown, upon the other hand, the most unlimited power of selecting those it may deem most qualified to guide and direct the country ; and, with this view, your Lordship will observe that I have not even adopted the usual clause which only enables the Crown to nominate one-half of the non-elective members from holders of office under the Crown, compelling it to nominate the other half from gentlemen in no way connected with the Crown, as I could see no good reason why, when such very liberal concessions are made upon the one hand, the Crown should not, upon the other hand, have the most unqualified and unlimited power of selecting members for their ability or excellence alone, without any view to the fact of their holding office, or the contrary. Indeed, in such a limited community as this is, it seems»a matter of the greatest importance to place as few restrictions as possible upon the power of choosing members for the Council from the whole talent of the community. 15. It is with a view to the same object that I have proposed that the expenses of members should be paid. In no other manner would it be possible iu New Zealand to obtain the attendance of country members, and I am sure that without the adoption of this rule the whole plan would break down. Although, therefore, the amount to be paid to members, and the proposed details, may be modified by the Council when the measure is laid before them, I have no doubt that they will affirm the general principle as embodied in the enclosed Bill. 16. In the draft measure now transmitted the rate of franchise for the Natives is different from that which I had previously recommended to your Lordship. It is now proposed to get over the difficulty by only constituting certain electoral districts in those portions of the province densely inhabited by Europeans, and in those districts a common rate of franchise is fixed for all races; whilst Europeans or Natives who may reside without such districts are equally disfranchised. Upon the whole I have at present come to the conclusion that this is the best mode of settling a very difficult question, and I think it is one which will be regarded by both Europeans and Natives as satisfactory. 17. I think I have now furnished a report upon all those points connected with the enclosed measures regarding which your Lordship is likely to require information. I ought, howfever, to state, in reference to the General Assembly for these Islands which is to be constituted by Parliament, that I have nothing to add to the recommendations I have already made upon this subject, except that I think that provision should be made for the payment of the expenses of the members. I should also add that I am quite unaware what may be the state of public feeling in England upon the subject of members of the Upper House of Assembly being elected by persons possessing a higher rate of qualification than that which entitles persons to a vote for members of the Lower House, but I think that if there is no constitutional objection to such a mode of returning members to the Upper House, it would work well in New Zealand, not only at present, but even for a very long period of time. I have, &c, The Right Hon. Earl Grey, &c. G. Grey.

Enclosure in No. 26. Provincial Councils Bill. In the fourteenth year of the reign of Her Majesty Queen Victoria. Session, No, Analysis. Title. 15. Duration of Council. Preamble, reciting division of colony into provinces, 16. Council to meet at least once a year. and 11 Vict., c. 5, and Ordinance No. 1, Session IX ; 17. First meeting of Council. Ordinance No. 1, Session IX., repealed as to Provinces 18. Time and place of meeting. of New Ulster and New Monster. ; 19. Prorogation, &c, of Council. tr. ,; t - 4> ti n •; jtr 7,- i 20. Expenses of members. 1. Constitution of the Councit and the election, qc, of members. 11. Jurisdiction, fye., of Council. 1. A Legislative Council to be established in every pro- 21. Jurisdiction. vinee. 22. Laws to be Bubjeet to disallowance of Her Majesty by 2. One-tliird of the members to be appointed, and two- the G-overnor-in-Chief. thirds to be elected. 23. Council to conform to Her Majesty's instructions. 3. Electoral districts ; and time, place, and mode of dec- 24. Laws not to be repugnant to laws of England. tions. 25. Appropriation of revenue. 4. Qualification of members. 26. Cost of collection. 5. Qualification of electors. 27. Subject thereto, surplus to be appropriated by Council. 6. Disqualification. 28. Apportionment between the several provinces. 7. Appointment of non-elective members. 29. Subjects on which Council prohibited from legislating. 8. Duration of office. 30. Any Ordinance on any such subject to be void. 9. Resignation of Councillors. 10. Seats in Council, how forfeited. 111. Proceedings, cfc, of the Council. 11. Councillor sitting by virtute officii to vacate his scat 31. Speaker to be elected. when out of office. 32. Speaker to preside. 12. Questions of vacancy, how to be determined. 33. Majority of Council a quorum. 13. Vacancies, how to be filled up. 34. Majority present to decide. 14. New elections, how to be made. 35. Standing rules to be made.

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