PAPERS RELATIVE TO THE PRACTICABILITY OF INCREASING THE REVENUE DERIVED FROM PASTURAGE RENTS WITHIN THE PROVINCE OF CANTERBURY.

Appendix to the Journals of the House of Representatives, 1864 Session I, C-02

C—No. 2.

PAPERS RELATIVE TO THE PRACTICABILITY OF INCREASING THE REVENUE DERIVED FROM PASTURAGE RENTS WITHIN THE PROVINCE OF CANTERBURY.

PRESENTED TO BOTH HOUSES OP THE GENERAL ASSEMBLY, BY COMMAND OF HIS EXCELLENCY.

AUCKLAND: 1864.

C—No. 2.

CORRESPONDENCE RELATIVE TO THE PRACTICABILITY OF INCREATING THE REVENUE DERIVED FROM PASTURAGE RENTS IN THE PROVINCE OF CANTERBURY. Superintendent's Office, Christchurch, Canterbury, N.Z., Sir, — 15th November, 1864. I have the honor to transmit herewith copy of a Resolution, passed by the Provincial Council of Canterbury at its last Session, together with a copy of the Report of the Select Committee therein referred to. I have the honor to state that I fully concur with the Resolution, and trust that the General Assembly will see fit to deal favourably with the subject. I have, &c, The Hon. the Colonial Secretary. S. Bealet, Superintendent. Provincial Council Chamber, 28th September, 1864. Motion was granted " That the Report of the Select Committee appointed to consider and report upon the practicability of increasing the revenue derived from Pasturage Rents- within the Province, be adopted. " That His Honor the Superintendent be respectfully requested to take such steps as may be necessary for the purpose of obtaining the sanction of an Act of the General Assembly to the recommendations contained in that Report." Chaei.es Bowex, Speaker. To the Provincial Council of the Province of Canterbury. Your Committee having carefully considered the subject referred to them beg to report as follows : I. The Pasturage Licenses held under the existing Land Regulations are of three classes — 1. Those for less than 1000 acres —the rent of which is 20s. per 100 acres. 2. Those for from 1000 to 5000 acres—the rent of which is 16s. 8d. per 100 acres for the first 1000 acres, and 8s. 4d. per 100 acres for the remainder. 3. Those for 5000 acres and upwards —the maximum rent of which (being that at present paid in nearly every instance) is 6s. 3d. per 100 acres. Certain conditions with regard to the stocking of runs are imposed on licenses of the third class, from which those of the first two are exempt. The Regulations provide for the continuance of these Licences until the land comprised therein is sold, or reserved for public purposes ; but the amount of rent payable may be altered on and after the 1st of May, 1870. II. From the above it will bo seen that no increase in the sum derived from the Pasturage Rents in the Province can be effected, without the concurrence of the Licensees, until 1870; but it appears to your Committee that such terms might advantageously be offered to the Licensees as would induce the majority of them to agree to an alteration in the rent at jiresent jiaid, and thus not only result in an increase to the public revenue, but conduce in other important respects to the material prosperity and welfare of the Province. III. Although it does not appear that the Pasturage Licenses will terminate in 1870, yet the uncertainty which at present prevails as to the steps which may be taken for fixing the rent to be paid at that time, creates doubts and uneasiness in the mind of' persons interested, or disposed to invest in this class of property, as to the position in which they will then be placed. TV. Tour Committee, after careful enquiry, are led to believe that this state of uncertainty is beginning to tell in a very injurious manner upon the operations of holders of Pasturage Licenses, and to deter them from investing capital by fencing and otherwise improving their runs, which would increase considerably the carrying capacity of the country, as well as prevent the spread of contagious disease. Y. The extension of this feeling of uncertainty to the mercantile and monied interest has the effect of preventing the introduction into the Province of a considerable amount of foreign capital, which would otherwise lie invested in the acquisition and improvement of property of this description. VI. Whatever amount of rent it may be thought fair should be paid after 1870, your Committee are induced, by the above consideration, to recommend very strongly that the question should be' .settled at as early a period as possible. Such a settlement would undoubtedly give confidence to capitalists and to others interested in pastoral property, who would beneficially employ additional capital upon their runs, and would thus stimulate the producing capabilities of the Province, and impart a healthier tone to trade and the general financial condition of the country. YII. The shortest period for which the settlement of this question would be of any value would be a period of fourteen years, commencing from the earliest date at which any Legislative measures on the subject can come into force, say May, 1866, and the amount of rent to be paid during that period should bo such as, on the one hand, would be a fair equivalent for the value of the license, and, on the other, a rent at which the licensee would be willing to surrender the rights possessed by him under existing arrangements. YI1I. After careful consideration, your Committee arc of opinion that on runs of the third class an increase of rent for the first seven years to twelve shillings and sixpence per hundred acres, and for the last seven years to twenty shillings per hundred acres, being for the first period double the present rental, and for the last period about three times the present rental, would be a fair charge to establish. IX. Your Committee recommend that a corresponding scale of increase be adopted with regard to runs of the first and second class. X. Your Committee recommend that it be open to Licensees to accept the above terms by a written notice to the Waste Lands Board at any time before the 1st May, 1866, and that any of them who shall not have given such notice by the above date, be excluded from the benefit of the new arrangement. By order of the Committee, 21st September, 1864. John Hall, Chairman.