THE LAND BILL.

Manawatu Herald, Volume XXXII, Issue 890, 10 September 1910, Page 4

THE LAND BILL.

The Land Laws Amendment Bill introduced by Sir Joseph Ward, Prime Minister and Minister of Lands. It contains an important new principle of settlement, a method by which the Government may acquire land (native or European) by way of renewable lease either by agreement with the owner or compulsorily. Upon either side giving notice of its intention to eufore the sale clause, the Government will be required to purchase or the owner to sell the leased land at the expiration of ten years from the commencement of the lease. This provision for compulsory leasing applies only where the owner holds lands exceeding ,£40,000 in value unimproved. Having compulsorily leased an estate, the Government will proceed to sublet to Crown tenants, wbo will have the right to make terms with the original landowner for the purchase of the fee simple. Lease-in-perpetuity lands may be converted to freehold upon the lessee paying to the Crown the original value at time of leasing, plus 25 per cent, of the difference between that amount and the existing unimproved value. Limitation of area is made stringent by imposing an individual maximum holding of 2500 acres (half the original quantity) counting each acre of first-class land as six and a quarter. One-fifth of the revenue from National Endowment lands is to he devoted for the benefit ot university education in Auckland, Wellington, Canterbury and Otago Universities. With regard to tenure, the renewable lease will apply to National Endowment lands, and all renewable leases remain unaltered. All other Crown tenants, whether of ordinary Crown laud or on Laud for Settlement areas, will be entitled to acquire the freehold upon payment of the original value plus 25 per cent, of the difference between that amount and the unimproved value at time ot purchase.

COMPULSORY LEASING OF BIG ESTATES. The provisions under which the Government may compulsorily lease estates over ,£40,000 unimproved value are so important that we reproduce them in full: — Clause 40. (i) In addition to acquiring the fee simple of land for settlement the Governor-in-Council may, on the recommendation of the board, acquire land (whether European or native) for the purpose of the Eand for Settlements Act by way of lease, either by agreement with the owner or compulsorily. (2) Every lease shall be for a term of thirty-three years, and shall contain a provision that on the expiration of the said term the Governor shall, on giving at least twelve months' previous notice in writing, be entitled to a renewal of the lease of the laud, or of so much thereof as under the provisions hereinafter contained shall remain unsold to sublessees for the like term and on the same conditions (including the provision for a renewal) as the expiring lease, save that the rental for the renewed term shall be fixed by agreement between the Minister and the owner, or in the absence of agreement by the court, in manner hereinafter appearing in case of compulsory acquisition by way of lease. COMPULSORY SALE. (3) Every such lease shall contain a provision binding the Governor to purchase and the owner to sell at the expiration ot ten years from the date of the lease the land comprised in the lease, or such part of that laud as under the provisions hereinafter contained remains unsold to sublessees,, (4) The obligation imposed by the last preceding sub-section shall arise only if the one party has given to the other part}' at least twelve months’ previous notice in writing of his intention to enforce such obligation. (5) If such sale and purchase does not take place within twelve months’ after the expiration of the said term of ten years, the Governor shall have the right, in case of the renewal of the said lease, to purchase the said land or such part thereof as remains unsold aforesaid at any time within twelve mouths’ from the commencement of the said renewal by giving to the owner three months’ previous notice in writing of his intention so to do. THE PRICE. (6) The price to be paid by the Governor for the fee simple of the said land shall, in the absence of agreement between the owner and the Minister, be a sum equivalent to the capitalised value of the rent (calculated at 5 per centum) reserved in the lease or in the renewal thereof, and should part of the said laud be sold to sublessees under the provisions hereinafter contained, then the price to be paid for the balance of the land shall be the said sum, less the total of all purchase money paid by sublessees to the owner for the fee_ simple of the lands comprised in their subleases. RENEWALS, Clause 41. Should the lease expire without any renewal being applied for by the Governor, or should the lease be legally determined or be surrendered during its term, the Governor shall deliver up to the owner the land comprised in the lease in the same heart and condition as such land svas in at the commencement of the said lease, and will also deliver up at the same time all buildings,.

fences, and other erections on the said land in the same state of repair (all reasonable wear and tear excepted) as such buildings, fences, and erections were in at the date of the commencement of the said lease, and, failing the Governor being able to perform or carry out this obligation, there shall be paid to the owner, by way of compensation, the loss the owner sustains by such failure; and if no agreement can be come to between the owner and the Minister as to the amount of such compensation, it shall be determined by valuation and arbitration in the manner provided by this Act. improvements. Clause 42, (1) If the Governor takes 110 renewal of the lease, or if it is determined or surrendered, the sublessee shall be entitled to be paid by the Governor the value of his unexhausted improvements at the time of the expiratioH, determination, or surrender of the lease, such value to be ascertained by valuation and arbitration in the manner provided by this Act. (2). The value of the unexhausted improvements made by the sublessee, so far as they benefit the future working of the land, shall be ascertained at the same time by valuation and arbitration in the manner provided by this Act, and the owner of the land shall pay to the Governor the value so ascertained. COMPULSORY METHODS. Clause 43. Where the acquisition of land by way of lease has been recommended by the board, but no agreement for a lease can be come to with the owner, the Governor may take the land (whether European or native) compulsorily by way of lease on the said terms, and the following provisions shall then apply; (a) The term of the lease shall commence on a date to be fixed by the Court, and on that date possession of the land shall be given to the Crown by the owner. (b) The rent shall be determined by the Court, but shall not exceed a sum equivalent to four and a-half per centum of the value of the land, including all improvements, as determined by the Court. (c) The rent shall be paid by the Receiver of Land Revenue half-yearly on the first day of January and the first day of July in each year:

Provided that, in addition to the first half-yearly payment there shall be paid rent for the period between the date of the commencement of the lease and the said first day of January or first day of July. (d) No land shall be acquired by compulsory lease unless the owner thereof holds (including the laud sought to be so acquired) rural or pastoral land of an unimproved value of not less than forty thousand pounds. (e) Out of an area of land which the Governor proposes to acquire by compulsory lease the owner shall be entitled to retain any area the unimproved value of which does not exceed fire thousand pounds. (f) Subject to the foregoing provisions of this section, sections fourteen to thirty-seven of the Eaud for Settlements Act, 1908 (prescribing the machinery for compulsory acquisition ot estates) shall, mutatis mutandis, extend and apply. DISPOSAL BY SUBLEASE. Clause 44. (1). The land acquired by the Governor by way of lease (whether by agreement or compulsorily) shall be disposed of by way of sublease in the manner provided by the L,aud for Settlements Act, 1908, in the case of other settlement lands, save that the term of the sublease shall not exceed the term ot the lease ; but in case the Governor takes a renewal of the said lease as hereinafter provided, the sublessee shall be entitled to a renewal of the sublease on the same terms and conditions as his first sublease, save that the rent shall be determined by valuation and arbitration as in the case of the renewable leases. (2) Every sublessee shall be at liberty at any time during the currency of his term of purchase and the owner shall, notwithstanding any obligation imposed upon him by the lease, be at liberty to sell the tee-simple of the laud comprised in such sublease at such price as may be agreed upon between them, not being less than a sum equivalent to the capitalised value of the rent (calculated at 5 per centum) as is reserved in such sublease.

(3). In case of such purchase, the rent reserved by such sublease shall cease to be payable, and the rental payable by the Crown to the owner under the lease shall be reduced by the amount of the rent reserved by such sublease.

(4). If a part, but not the whole of the land comprised in the lease is sold in fee-simple to sublesssees, and if the Governor or owner is called upon under the foregoing provisions to purchase or sell respectively such part of the land comprised in the said lease as remains unsold, there shall be deducted from the purchase price the amount paid by the sublessee to the owner for the fee-simple of the land comprised in the sublease. NATIONAL DEVELOPMENT ACCOUNT. It is provided that all surplus moneys received in respect of the sale of the fee-simple of Crown lands (other than settlement lands) shall be paid into the public account to the credit of a separate account called the National Development Account, to be applied in the development of the country by roads, bridges, telegraphs, telephones, and railways, subject in

every case to appropriation by Parliament. A penalty not exceeding or five years’ imprisonment is provided for those convicted of evading the provisions of the law regarding limitation of area. In the case of a corporate body, the maximum flue is fixed at GRAZING RUNS. The original method of classifying small grazing runs is to be superseded. The Land Board may classify any pastoral lands as small grazing runs not exceeding 15,000 acres in each run, and they may be rented at a yearly rental of not less than per cent, on the capital value, for one term of twenty-one years, with right ot renewal for one term only. There is provision for payment to the outgoing tenant for all substantial improvements of a permanent character made upon the land. The Governor may resume at any time, for purposes ot regrassing, any portion of a small grazing run not exceeding 50 acres. Provision is also made for the control of the runs so that the lessee’s stock shall feed in rotation on various portions, if depasturing is feared. Any rebate of rent is in future to remain a charge upon the land, payable when the lessee transfers his interest. The minimum capital value of third-class rural lands is raised from 2s 6d to 5s per acre. In disposing of land under the optional system the minimum prices shall be: First-class land jQ r per acre, second-class 10s, third-class 5s per acre.