THE Temuka Leader. TUESDAY, JANUARY 31, 1893. HOW TO MAKE THE CHEVIOT ESTATE PAY.

Temuka Leader, Issue 2458, 31 January 1893, Page 2

THE Temuka Leader. TUESDAY, JANUARY 31, 1893. HOW TO MAKE THE CHEVIOT ESTATE PAY.

The Hon. W. Rolleston was very guarded in his remarks concerning the purchase of the Cheviot estate. He said he had not sufficient knowledge of all the circumstances to enable him to “ give an opinion as to how the purchase will work out,” but he believed he might “ congratulate the sellers.” Now we think that the fact that Mr Rolleston cannot find fault with the purchase proves conclusively that it is a good one. Let it pay or not pay, the Government could not have done otherwise. If they had not purchased this property, and allowed themselves to be bluffed by the trustees, the result would be that at the time of the next valuation all the large estate owners in the country would insist on a reduction of taxation, and that the revenue would consequently sutler. Seeing now that the Government are ready to purchase, they will be very careful before making such an offer as the trustees of the Cheviot estate did, and consequently the moral effect of the Government’s action will tend to maintain the present taxation. That in itself is worth a great deal. We believe that under any circumstances the Government cannot lose, but they would gain a great deal if they would only rend asunder the red tape with which Acts of Parliament have bound them, and act in this matter in a purely business-like way. They have bought the land, but it will take some time to survey, road, and dispose of over 84.000 acres. That cannot be done in a day, or even a year, and during the time which elapses between the purchase and disposal of the land interest on the purchase money will be accumulating. The interest on £260,000 at 5 per cent, is £13,000 per annum, and this must be added to the purchase money in the final reckoning, so that next year the cost of the land will be not £260,000 but £273,000. Thus every day the laud will be getting dearer and dearer until finally disposed of, because the accumulated interest must be added to the purchase money. Should it take much time to settle, therefore, there is risk of a loss, but this the Government could avoid by acting on business principles. Let them buy the sheep on the property, and farm it until they can dispose of the land, and they will make money instead of lose it. There are on the Cheviot estate 115,000 sheep or thereabouts, and the wool off these is worth between £20,000 and £25,000 a year. There is besides this 25.000 sheep sold every year, and these will bring in something like £B,OOO a year, which if added to the value of the wool would yield a gross revenue of about £30,000 a year. Now between £40,000 and £50,000 would buy these sheep, and a manager and half-a-dozen shepherds could do the work very inexpensively. The net results would therefore be as follows : Purchase money of land £260,000 Purchase money of sheep ... 40,000 Total £300,000 That would ha about the total amount of the purchase money in round figures if the Government decided on acquiring the sheep also, and the revenue which would accrue from this outlay would be— From sale of wool, say £22,000 From sale of sheep, say 8,000 Total £30,000 Less cost of management, say ~, 2,000 1 £28,000 We have ‘ TOQe some trouble to get the figures we ha" re above ’ have been assured that "G cally correct. Of course we 0 a given round figures, because we do no. deem it necessary to work the scheme out to the last farthing. We have got the figures from a reliable source, but the Government have better opportunities of ascertaining the actual facts, and we trust they will do so, and give this matter careful consideration. The point is this : By not purchasing the sheep they stand to lose in interest over £13,000 a year ; by adopting our suggestion they will get interest at the rate of 8 or 9 per cent on their investment. It is impossible that they can lose if they purchase the sheep'; it is possible they may lose if they do not. But there is another question involved : The law gives them no power to buy the sheep so far as wo know. It was Sam Weller, wo believe, who used to say that “ the law is a bass.” Let the Government regard the law as a bass ” and purchase the sheep, and they will never have cause to regret it. Let thorn do this, and lay the whole matter before Parliament next session, and ask it to pass an Act validating the purchase, and they will find that not only will it pass, but that it will be the most popular step they have hitherto taken. It is certain that they will lose by keeping the land idle ; it is just as certain they will gain by utilising it in the way indicated. They have, therefore, a choice in the matter, and wo trust they will avail themselves of this opportunity to lot the country see that they are capable of administering its affairs in a business-like way.