SALE OF SHEEP

Evening Post, Volume CXXIII, Issue 123, 26 May 1937, Page 19

SALE OF SHEEP

CANTERBURY RUNS GOVERNMENT'S POSITION The dispei'sal of the sheep from the [1 Molesworth Tarndale runs was the r subject ,of comment by the Minister r. of Lands (the Hon. F, Langstone) yes-; I terday. The Minister said that the I y action taken had nothing to do with - the Government, and those who had conveyed that impression had either _j done so deliberately or in ignorance of the position. "These runs have been held under licence from the Crown for the past 50 years," said Mr. Langstone. "They are still so held, and it was a matter sojely for the licensee and those having a financial interest in the properties to decide whether or not the stock should be sold. For some time, past the licensee, owing partly to. slump conditions, has been in financial difficulties, and the stock. ■ firm, with his concurrence, has been more or less mortgagee in possession. This position culminated in the properties being offered for sale as a going concern at .auction in February last, and in order to facilitate the sale my Department offered a renewal of the expiring licence for a further term of 21' years at a reduced rental. Notwithstanding ..this, and despite the fact that high prices were ruling for both, sheep and wools, the properties did not attract, a purchaser. .... ■■'. "It was then .decided, by those . in-1 terested to dispose, of the stock inde-: pendently of the licensee's other interests in. the properties, and 22,0,00 sheep and 1600 head of cattle were advertised for. sale. Whether or not the properties have been worked efficiently during the past few years I am not. in a position to say, butl am informed that the. firm holding security over the stock and improvements has incurred very heavy losses. The indications are that it preferred to take' advantage of the good prices ruling and to cut its loss rather than run the risk of further loss. I am also informed by a, Christchurch' citizen (not a depart-, mental officer) that the sheep -were of an inferior quality, and this sugges-. tion appears to be confirmed in the fact that at the sale they averaged only about 16s per head. There was a suggestion that the Government might be disposed to negotiate for the purchase of the licensee's interests rather than.have the properties deplete ed of stock, but apart from many considerations such as, for instance, the ab* sence of financial authority to proceed with such a proposal, I would hesitate to establish by precedent a policy which would result in the Government being called upon to purchase pastoral runs because their licensees chose to announce their intention of disposing of their stock. .

"Summarised, the position is as Hollows: The land is still held under valid title by the licensee, and on the recommendation . of the Land Board he has,, been offeree), a; renewal ot the licence for a further term 0f.,21 years. '■It is the. prerogative of the licenst-e to accept the renewal, but if 'lie clecides to forgo that right the Government will, at the expiry of the licence in 1939 or its sooner deterwination, be able to review the whole position. In other words, as soon as it is in possession of the licence the Government will obtain reports from experts in handling high country and.will decide the policy to be adopted in administering these particular runs."