RUNANGA.

Dominion, Volume 5, Issue 1533, 31 August 1912, Page 6

RUNANGA.

MR. G. W. RUSSELL'S ESTATE, A SALE TO THE GOVERNMENT. Mr. Hino went on ' to refer to the Runanga Estate transaction, details of which had been brought out by tho Committee. So far as the Committee could trace negotiations wero started back in 1303. Mr. Russell: Point of order. Has the report on this matter been presented? Mr. Masfey: Yes. Mr. Russell said the report of the committee was "that tho commititco requires further information." He asked whether a member could discuss tho matter on this Tflport. ' Mr. Hino: There is aii item on the Estimates referring to this matter. Mr. Lang held that Mr. Hine was in order. v Mr. Ell asked again whether the refereneo was in order.. It was an unusual tiling to discuss u question still under review. Mr. Myers: Has the report been laid upon the table. The Hon. W. F. MASSEY (Prime Minister) said the Departmental report had not been presented, but it would be presented before tho Lands Department's Estimates were to be considered. Mr. Hine was proceeding to review tho negotiations, when Mr. Russell rose to another point of order. So far as he was concerned, he did not think this matter should come up under these circumstances. It had taken him by surprise. The proper thing to do would lie to have "a square go" ou the matter when tho House could be prepared with the information needed. If the lion, gentleman was going to charge him with anything, the proper thing to do was to give him notice. But this method did not strike him as being British or in accordance witli the traditions of tho House. Mr. Lang said the discussion was in order. The Hon. R. M'Kenzie asked whether the Accounts Committee hail reported on t £ll tha Estimates, and, on beiiig injorwed.

that tho committee had done so, he said tlio discuss-oii was quite iu order. Mr. Hine had recounted a little more of tho negotiations," when Mr. A. M. MYEI!S said he really thought tho discussion should bo delayed until a full report was laid upon the table of the House. Then the matter could be t'ullv investigated. Tiio Hon. W. F. MASSEY (Prime, Minister) said he had intended to have this Departmental -report along with others laid upon tho tablo before the Estimates camo up for consideration. The Negotiations. Mr. Iline then detailed chronologically the negotiations leading to the purchase of the Rtmnnga No. la Block. On August 7, 11109, the Under-Secretary for Lands wrote to the chief surveyor at Napier, to have i Pohokura survey put in hand during tho year, to start'about December. On March 9, 1910, tho Under-Secretary for Lands wrote to the chief surveyor at Auckland, that ho had instructed tho surveyor to survey the road under the Public Works Act, and to take the whole of tlio area between the road and tho Crown lands, aa this would mako the land moro suitable for subdivisions. Authority to survey the Toad was duly issued. On November 19, 1910, the chief surveyor at Napier sent a tracing of tho road survev, and a report by Assistant Surveyor Walshe, that unless the area was acquired moro roading would bo necessary; besides it would reduco the value of the sections owing- to tho want of homestead nnd yarding lands. On November 28, 1910, the UnderSecretary for. Lands wrote to the chief surveyor at Napier to send tracing and schedules for taking of road up Waipunga Valley. If tho European owners would sell tho part of Runanga No. la he was authorised to negotiate. On December IG, 1910, the chief surveyor at Napier wrote reporting as to the titles, stating that, as to tho portion of Runanga No.'la between the road and the Crown land, thero was no provision in the Act for taking the same. The owner was T. Ballan, of Christchurch. On January 5, 1911, the Under-Secre-tary for Lands wrote to tho Chief Surveyor at Auckland, acknowledging tho alive, and stating ho was glad to hear he ' had storted negotiations with Ballan. On February 15, 1911, the Chief Surveyor at Napier reported that he had received a letter from Williams and Kettle, acting oil behalf of T. Ballan, offering to sell the area referred to at JC4 per acre. 'The Government valuation in 1907 was five shillings. This applied to. tho wliolo block of 34,000 acres, lie considered the oft'ej- out of the question, and asked authority .to offer 15s. On February 23, 1911, tlio Under-Secre-tary advised to' break off negotiations, lay' off .larger areas, and have fewer access roads. ■ He,also asked, as to other, means of access being explored. | •, On April 20 the Chief Surveyor at Napier reported . that there no other reads 'practica-blo- except at prohibitive cost, and suggested' that the .original scheme be adhered to. Mr. Russell Enters the Field. ; On May 5 Mr. Russell wired to the Under-Secretary inquiring if anything more had been done towards taking tho road up the Waipunga Valley to give access to Pohokura, to which he replied that the intention was to take the necessary land under tha Public Works Act. On June 17 Russell and Anthony, solicitors, Christchurch, wrote to the Minister for Lands by authority from T. Ballan, explaining tho position of tho'land as affected by the road to be taken, and offered to sell the road area and the area severed at £2 10s.. per acre,, fence tho' boundary, and pay costs of conveyance, etc. On Juno .27 tho Under-Secretary for Lands referred the offer to the Commissioner of Crown Lands, Napier, and asked whether tho Department should pur-, clmsa the whole area, and if the circumstances in his opinion warranted same. The reply, dated July 4, was that it was desirable to accept tho offer. On July 18 tho Under-Secretary of Lands recommended the Minister to acquire the land. This was approved (Mr. Buddo acting). On July 25 the Under-Secretary for Lands advised tho Commissioner of Crown Lands, Napier, of tho approval; also Russell and- Anthony, that the 'transaction would be completed when Parliament appropriated the funds, i • ' On July ?9 Messrs. Russell and Anthony acknowledged the Under-Secretary's acceptance: Putting It Through, On November 2, 1911, the Under-Secro-' tary for Lands wrote to Messrs. Russell and Anthony that the money was now appropriated, and that the Solicitor-Gen-eral would do the legal work. On November 2, 1911, tho Under-Secre-tary for Lands wrote to the Commissioner of Crown Lands at Napier asking for a tracing and description of tho land for tho conveyance, and iilso for the correct area. On November C, 1911, tho Commissioner of Crown Lands at Napier replied giving tho information, and stating the area at 1404 acres. 1 On November 9, 1911, the Under-Secro; tary for Lands issued instructions to tho Solicitor-General to arrango tho conveyance. On December 15, 1911, tho Crown Law Officer advised that matters were, nowready for settlement, and that the purchase money was .£3510 10s. On February 18, 1911, the Under-Secre-tary for Crown Lands wrote to the Solici-tor-General advising that a voucher had been passed payable to Bell, Gully, Bell and Myers, the authorised agents for T. Ballan. On December 21, 1912, the Under-Secre-tary for Lands wrote to the Commissioner of 'Crown Lands at Napier advising that tho transaction had been completed; also that Mr. Ritchie had visited the land witli Mr. Strauchon, that he considered the State had made a good bargain, and that tho land was a valuable addition to the Pohokura Block. On March 5,' 1912, Mr. G. W. Russell wrote to the Under-Secretary for Lands intimating that; tho titles to Runanga 1A and 2A were now in his name, and that any correspondence in future should go to liiin. The tender of Arthur Cash was accepted at .£59 14s. per mile for fencing of ten miles of road. Mr. Hine stated that during the short session Mr. Hindmarsh, M.P., had drawn attention to the fact that he had information that a member of Parliament owned this property. A day later a letter appeared in the newspaper . Mr. Hanan: What is the charge? "What Had It Been Delayed For?" Mr. Hine: I am making no charge. I am trying to make the hon. gentleman, realise that, as was decided by a committee, of which ho himself was chairman, it should be illegal for a member of Parliament to act in his own behalf in negotiating the sale of an estate to tlio Crown. That committee's recommendation, however, had nor. been rnnde effective by the Ward Government. The suggested. legislation had been dodged.What had it been delayed for? That was obvious to everyone. He hoped, however, the present Government would put on tho Statute Book legislation, such as had been recommended by the committee. Ho referred to a letter in the press from Mr. Keene, of AVellington, stating that on June 2 Mi". Russell had waited upon him, and stated that he had purchased the laud, and that lie wns negotiating with the Government for the sale of a portion of the land, and asked him to release the mortgage, l.t.was remarkable how quickly the transaction moved afterwards— when a member of Parliament stepped into the breach, Before that there had been delay for two years, but afterwards there was no trouble. Within a fewmonths the offer was accepted, and tho deal completed. The matter had been before the Public Accounts Committee this session, and had given it a good deal of concern. The House and the country, would realise that the Public Accounts Committee was doing good work. Especially would this be the case if the present report resulted iu placing on the Statute Book legislation such as had been recommended by the Hine Inquiry Commit tee. Mr. lIANAN (Invercargill) said if thero was no charge there could be nothing wrong. The reports showed that in tin; opjnion of the Departmental officers tho State had got good value for the money paid. Therefore the State had gained by acquiring this property. The negotiations were entered into before Mr. Russell became the owner of the property at all. Some time ago it. is true the property was valued at ss. an acre, hut th» Departmental officers stated that they had not good value for the money pain. 11.9 (nought Mr. Hitis's attinn was an wax ,of attacking a man,

Mr. F. H. SMITII (Waitaki) eaid that olio could lint draw :niy other inference than that Uio negotiations had been oil' i'or some time, ami that when a Minister had coine into tho transaction, instructions luul been given to the Departmental officers to proceed. Mr. Russell's Denial. Mr. RUSSELL said that lie was sorry that tho matter had been brought up in tho manner in which it hail conio before tho House. The member for Stratford seemed to think that there had been something improper. Well, let there be Jin inquiry, and if lie (Mr. Russell) was concerned let him lie present. On tho member for Stratford's own showing, years before Mr. lius.-ell had had anything to do with the mailer, tho Government of the day had been in negotiation for a strip of land up tho Waipunga Valley. The Government owned 50,000 acres of land right by the silo of this valley, high, steep, bush country, having no access whatever, and tho Government had found that tho only way to open np the country was to run a road up the valley. Negotiations had been entered into with the man who owned tho property before Mr. Russell had, and that owner had asked .£4 per acre. There never lind been any communication,'cither verbally or by lettor, between any member of the Government and himself regarding the purchase. Tho two highest officers in the land, Messrs. Strauehan and Ritchie, who had beon over tho block, had said that tho purchase was a good one, and that the land was well worth the money. Mr. Fisher: What was the (late of this sale? Mr. Russell replied that lie did not know the exact date of the sale, but that tho negotiations had been going on right from somewhere in 1500 until the transaction had been finally completed. Tho effect of the purchase of that 1300 acres of country was that the Government would be able to convert all tint, area into small grazing runs. And throughout a largo part of the. valley a big portion of the country would become suitable for dairy farms. A Good Purchase. Mr. Russell declared. that lie had no hesitation in saying that the Government had a good purchase. He remarked that it was to the detriment of the remainder of tho ltununga property that that block had been sold. If it became necessary to inquire into the subject members of tlio Government would bear out on oath the statement which he had made as to his not having communicated with the Government. When ho had virtually got the property into his hands, lie had gone.to Mr. Kensington (late Under-Secretary for Lands) and had said tliat tlio purchase of Kununga was greatly to thfe detriment of tho block, and that lie (Mr. Russell) wished that what had already' ■ l>e'en dono should bo cancelled.' -Air. Kensington had then said that it was too late—that the transaction; was . virtually complete.-: Ho said that he did not blame/Mi 1 . Hine.for having brought tlio matter, up. If there was any. question regarding sucli a'subject, the matter ought to ba thrashed.out. Ho did not wish that any wrong impressions should prevail respecting any action of his; bis public and his private doings had bwn honourable. However, ho regretted the manner in which the subject had arisen. The matter-should have been dealt with by a committee. .Then ho would have been cleared. He believed that already he had been cleared. . All tho papers could be laid on the table, and it would be seen that the transaction bad been a straightforward one. Inquiry Promised, . , The PRIME ■ -MINISTER (the Hon. W. F. Miissej;) said , that - • now that the member for Avon had made tho statement which lie-was entitled to make, he (Ml.'Massey) wanted to make a suggestion. The lion, gentleman had practically admitted that tlrt) matter could not rest where it was. Ho proposed at tho first opportunity—when the Speaker took the chair—to jay .tlio papers concerning .this matter on the tablo of the House, and to move that they be referred to the Lands Committeo for inquiry and report. Mr. Russell would then have an opportunity of goingbefore the Lands Committee and calling for any evidence that he thought proper. The Lands Committee would also lmvo ail opportunity of calling what evidence it thought necessary. Ho did not suggest that there was anything wrong. If thero was not, so much the better. . Mr. Hanan: What-is the charge? The'Prinio Minister: 1 am'making no charge, but tlio matter has been ~ mentioned in Parliament, and as the member for Avon says, tho whole thing should bo cleaTed up. He hoped that in view of his announcement members would refrain from discussing this question on the first item. Mr. G. LAURENSON (Lyttelton) referring to the speech of tho member, for Stratford, said that a man who tried to build up a Parliamentary reputation by bringing up "mares' nests" would never build up any sort of reputation at all. Mr. Anderson: Not even a bad one? Mr. Laurenson: "No, not even. a bad one—a contemptible one." Mr. Iline had said that quito recently when a holiday was given in the Government Printing Office, 400 employees remained at work and were given double wages. The real facts -were that some weeks previously, when a half-holiday wfts given in tlio Government Printing Office, thirty-ono people remained at work and 400 took the holiday. The member, for Stratford had been quite right, only he had displaced his figures—that was all. Sir JOSEPH WARD (Awarua) said that ono statement made by Mr. Hinc was to tho effect that Departmental officers went about their business by motor-car and not by tram. This practice had been stopped, and the instruction had been issued before the matter had como beforo the Public Accounts Committee. Ho also thought the Government could not reduco the travelling expenses of officers without impairing in some degree their usefulness. Concerning the printing offico incident, cited by Mr. Hine, the information he hnd got by inquiry was exactly the opposito of what Mr. Hine had said. Ho (Sir Joseph Ward) had. learned that 400 wore on holiday and 30 at work on double pay. MINERAL OIL. EMPLOYMENT OP EXPERT ADVOCATED. ...... Dr. A. Iv. NEWMAN (Wellington East) said that it, was time'that the Government recognised 'the value of the oil industry. The Government; should import the best oil expert obtainable in Europe or America and retain his services for a year- or two. He understood that in one or two places in this provincial district people were putting down bores without scientific advice. Ho appealed to the Prime Minister to have the oil deposits 'properly exploited. This great business should not be left entirely to private enterprise. Before the session was over the Prime Minister should instruct tlio High Commissioner to employ a trained geological expert. Messrs. Escott and Okey also urged that the Government should assist in the exploitation of oil deposits