LAND SETTLEMENT

Rotorua Morning Post, Volume 2, Issue 234, 24 May 1932, Page 7

LAND SETTLEMENT

whakatane scheme NECESSITY FOR INTERNAL LOAN URGED ON GOYT. TO SOLVE UNEMPLOYMENT. The raising of an internal loan of £6,150,000 for the purpose of settling men on Crown lands has been proposed to members of the Government by a committee of Whakatane residents, including the Mayor of Whakatane, Mr. W. Sullivan, Mr. P. L. Baird and Mr. A. G. Sutherland. It is aimed to reduce unemployment by the adaptation of the taxation. Out of the proce.eds of the ■ plan which it is contended, -would result in the permanent settlement of i large numbers at present out of work. ' The proposal is that the loan should be paid off by setting aside fourpence in the pound of the present unemploy- . ment taxation. Out of the proceeds of the loan, it is maintained. that 5000 i settlers can be placed on the land. j After dealing- in detail with costs j of settlement, the committee's plan | states that the internal loan should be 1 raised at the lowest possible rate of . . interest. The annual interest bill, ■ calculated in a rate of four per cent, would be £246,000. By the method proposed it is held that the loan could be repaid in six and a half years, the j return from the tax being estimated | at £1,200,000 a year. j i "With reference to the proposed | tax of four pence in the pound, it is i to be understood that this will form I part of the present taxation — that is, j : that fourpence of he present tax now payable will be set aside for this > settlement scheme," the committee states. "A scheme of this kind aims definitely to reduce the unemployment taxation, offers some permanent solution of the problem, and provides opportunities for suitable men to become independent settlers. Taxation Prospects. "In the event of this scheme or some permanent settlement scheme not being adopted it must be seen that the present taxation may he continued indefinitely without any prospects of a reduction and very little permanent or national benefits being derived from the expenditure incurred under existing schemes. The revenue received by the State from the Crown leases will he used for additional land development on the basis mentioned. "It will be seen that the placing of 5000 men as settlers on Crown land, taking into consideration the repayment by way of lease, repayments of stock, and interest on stock, would amount to £460,000 per annum. The amount of £460,000 could be used for the settlement of further settlers and for additional assistance to settlers under this scheme where the committee deems advisable. "On the basis of the repayment of the loan by way of the tax of fourpence in the pound the total available per annum would amount to £1,200,000. The surplus after providing interest and isnking fund for repayment of the loan would be availabl'3 for further settlement." Selection of Land. Land selected for settlement would be approved by an honorary committee comprising persons of local practical farming knowledge with the assistance of business men, to act in conjunction with the department's officials, both as regards selection of areas and development of such areas. Settlers would be selected and approved by the committee, and be entirely under its control. In the event of there being insufficient Crown lands available for settlement in any given district, consideration would be given to tbe setting aside of portion of the unemployment tax to finance the purchase of areas suitable for settlement in such districts. "A scheme of this sort would be a considerable asset to the country," the plan adds. "Where roading is necessary it should be undertaken through and by the Public Works Department, using unemployed labour as far as possible. It is estimated that if a scheme of this sort were adopted settling 5000 men on the land, it can be safely said that 20,000 people would be absorbed in other occupations, arising from the settlement." — — —