ADJUSTMENT OF THE MIDDLE ISLAND DEBT.

Colonist, Issue 95, 17 September 1858, Page 2

ADJUSTMENT OF THE MIDDLE ISLAND DEBT.

Thk question which has been so long .pending, has been settled, and the debt due to the late New Zealand Company has been apportioned to the various provinces. We, in this, have been relieved of an annual sum of i>l3oo. This will be a considerable relief to the provincial expenditure, and having that amount left in. our exchequer, we may hope that the public improvements will receive the full benefit of such an addition to the balance at the Bank. .'

" The province of Nelson having complained of the apportionment amongst the thi*ec provinces of the Middle Island, of the sum of £200,000 raised to discharge the New Zealand Company's -Debt, effected by the financial resolutions of 1856; the undersigned members of the General Assembly from those provinces have agreed to refer to arbitration the question of whether general considerations of equity and fairness call for any, and if so, what alterations in that apportionment. "They further agree that Messrs. Richmond and Whitaker shall be the arbitrators in the case, with power to appoint an umpire in the event of their differing, • - ,-.-■ .

"They also pledge themselves to use their best endeavors to carry-out the award to be made by the arbitrators, to have it incorporated in the Land Revenue Appropriation Bill, and considered in their respective provinces as a final and binding arrangement.

" For the Province of Nelson—D. Monro, M. Richmond, Herbert Evelyn Curtis, Alfred Domett, E. W. Stafford.

"For the Province of Canterbury.—J. Olivier, Crosbie Ward, John Hall, Richard Packer, W. S. Moorhouse, C. R. Blakiston.

"For the Province op Otago—W. Cargill, John P. Taylor, James A. Menzies, John Hyde Harris." award. . , , " The agreement under which the matter in difference lias been referred,to us as arbitrators sets forth that,—

" The Province 6f Nelson having complained of the apportionment amongst the three provinces of the Middle Island of the sum of £200,000, raised to discharge the New Zealand Company's Debt, effected by the financial resolutions of 1856, the members of the General Assembly from those provinces, whose names are subscribed to the agreement, have agreed to refer to arbitration the question whether general considerations of equity and fairness call for any, and if so what alterations in that apportionment.

" Dr. Monro on -the part of Nelson, Mr. Hall on the part of Canterbury, and Captain Cargill on the part of Otago, have attended us to explain the circumstances to be considered in reference to those several provinces.

■■■■■■ "In reviewing at this time \ljb;apportionment made in 1856, by the General Assembly," ;we have the advantage of better information in some important particulars than was then available. - "A_more accurate chart of the, islands of New Zealand, published since that time, has enabled us to avoid an error as to the size of the several provinces of the Middle Island. From a careful calculation made in the Land Office at Auckland, it now appears that in 1856 the area of Nelson was much over estimated, that of Canterbury rather under: estimated, and that Otago is not so large as it was then believed to be. Additional information has also been obtained as to the relative value of the land in the several provinces ; and their resources now appeal* in a somewhat different relative position. ' " Under all the circumstances as now presented, we have felt no difficulty in arriving at the conclusion that' general considerations of. equity and fairness' require some relief to Nelson; but we have felt great difficulty in arriving at any conclusion as to the extent to which that relief should be given. "The data upon which any calculations must be. founded render it impossible to be fully satisfied that we can so determine the matter .as to obviate, what may appear to be even reasonable objections; and even if we could now do so the great changes which so rapidly occur, and the facts which are from time to time brought to light in a new country would most probably in a few years again shew an obvious inequality in any apportionment that could be made. " After a careful consideration, however, of all the circumstances as they now appear, we feel justified in coming to the conclusion that Nelson should be relieved from about one-third of the share of the £200,000 at present imposed on her, and.that the amount from which Nelson is relieved should be placed in equal shares upon Canterbury and Otago. "In coming to this conclusion, we have been guided in a great measure by the following general considerations :—

" The total area of the Middle Island is, as calculated from the best information in the Land Office at Auckland, 38,422,400 acres, divided between the several provinces as follows:—Nelson, 9,600.000; Canterbury, 13,152,000; Otago, 15,670,40^. .

"Nelson has therefore one-fourth of the area, and if an acreage basis alone were taken would be chargeable with one-fourth, of the debt. There is not, however, the slightest doubt on our minds that this basis, apart from other considerations, would not be equitable, as Nelson has confessedly a far less available surface than 1 eftlilr of the "oilier provinces; but then on the other hand she has a promising gold-field,'a'coal-field, in a convenient locality, and a geographical position superior as regards" steam communication with Europe ml Australia, to either of the other provinces. The climate also of Nelson is superior to Otago, and at loast equal to Canterbury for sheep farming. Fairly weighing, however, all these considerations, we still think the balance something against Nelson, and we have made a deduction accordingly.

"In apportioning between Canterbury and Ofag-o the sum from which Nelson will thus be relieved, we have felt less difficulty. The relative position of these two provinces appears much th.v same as was . assumed in 1806. Canterbury is found to contain a larger area than it was then believed to have, and the estimate of the value ofthe landyand resources of Otago (having a less area than was supposed) has been fully confirmecl. The milder climate, of Canterbury-is a consideration of some importance, as regards capabilities for sheep farminor, which at present forms the staple occupation of both provinces. Upon the whole we think that the proportions between these two provinces still continue fair, as fixed in 1856J and should be maintained. "

"We think it right to state that the much larger revenue arising in consequence of different management from the Crown Lands in Canterbury than in the other provinces, especially Nelson, have not been and cannot in our opinion be fairly taken in account with the view as has been urged upon us to increase the proportionate burthen of Canterbury. "In determining however, that equal sums shall be paid by Canterbury and Otago, we have gone upon the assumption that the line between these two provinces, which was treated as the .boundaiy in 1856, and is also marked in the chart laid before us for our guidance in this arbiti'ation, is correct. If tin's should turn out not to be the case, and any portion of the territory appearing on that chart, as part of Canterbury, and now therefore virtually charged with a portion of the Canterbury debt, should be found to be within, the Province of Otago, we consider that a fair proportion of that. debt should be transferred to Otago. "Our award is that the three provinces of the Middle Island should ' upon general principles of equity and fairness' contribute to the debt of £200,000 as follows :— . : ; .Capital. Nelson ~...„ 45,000 Canterbury ;77,500 Otago ...,,..,.,...,.,..,,.,,...,^^500... / £200,000 "Subject to adjustment, if necessary, between Canterbury and Otago on the single ground we have stated. ' . .: " Fred. Whitaker, "C. W. Richmond. " Auckland, August, 1858."