LANDS COMMITTEE: REPORT ON THE PETITIONS OF J.P. EUSTACE AND 201 OTHERS, No. 737, AND T. McKENZIE AND 42 OTHERS, No. 738; TOGETHER WITH PETITIONS AND REPORT OF THE PUBLIC TRUSTEE THEREON. (Mr. A. W. HOGG, Chairman.)

Appendix to the Journals of the House of Representatives, 1904 Session I, I-05a

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1904. NEW ZEALAND.

LANDS COMMITTEE: REPORT ON THE PETITIONS OF J.P. EUSTACE AND 201 OTHERS, No. 737, AND T. McKENZIE AND 42 OTHERS, No. 738; TOGETHER WITH PETITIONS AND REPORT OF THE PUBLIC TRUSTEE THEREON. (Mr. A. W. HOGG, Chairman.)

Report brought up 13th October, and ordered to be printed.

ORDER OP REFERENCE. Thursday, the 20th Day of June, 1904. Ordered, " That Standing Order No. 218 be suspended, and that a Committee, consisting of eighteen members, be appointed to consider all Bills and petitions that may be introduced into this House affecting the lands of the Grown, and to report generally upon the principles and provisions which they contain : the Committee to have power to call for persons, papers, and records; five to be a quorum: the Committee to consist of Mr. Bennet, Mr. Buchanan, Mr. Ell, Mr. Elatman, Mr. Graham, Mr. Hall, Mr. Harding, Mr. Hogg, Mr. Jennings, Mr. Lang, Mr. Laurenson, Mr. Lawry, Mr. B. McKenzie, Mr. J. W. Thomson, Mr. Vile, Mr. Witty, Mr. Wood, and the mover.— (Hon. Mr. Duncan.)

REPORT.

I am directed to report that the Committee has no recommendation to make. A. W. Hogg, 13th October, 1904. Chairman.

PETITIO N S .

No. 737, Petition of J. P. Eustace and 201 Others (presented by Mr. Major); and No. 738, Petition of T. McKenzie and 42 Others (presented by Mr. Jennings). The Honourable the Speaker and members of the House of Eepresentatives in Parliament assembled. The humble petition of the undersigned tenants of the Public Trustee under " The West Coast Settlements Eeserves Act, 1892," and amendments thereof, showeth :— 1. That your petitioners, being tenants of the Public Trustee under "The West Coast Settlements Eeserves Act, 1892," and amendments thereof, humbly pray that that Act be further amended so as to provide for the option of the purchase of the freehold of their holdings. Such option can be given without doing any injustice to the Native owners, or depriving them of any rights, as (a) the lands leased are Native lands only in name—a sufficiency of land for each hapu has been permanently reserved for the use of the Natives ; (b) the leases are perpetually renewable, and therefore the lands leased can never again come into the possession of the Native owners; (c) the Native owners have no actual will or say in the administration of these lands, as the feesimple is vested in the Public Trustee, who has sole and' absolute control, and administers the estate without reference to them; (d) that the Natives' only interest in the land is the receipt of the rents (less sundry deductions) from the Public Trustee; (c) that if the option of purchase were given to the tenants, the same revenue, with less deductions, could be secured to the Natives for all time. The rent is at present 5 per cent, on the capital value of the unimproved holding, and the right of purchase should be at such an increased sum (say 20 per cent.) so as to insure a return in interest equal to the rent previously paid. The purchase-money should be paid to the Public Trustee, invested by him, and the interest therefrom paid to the Natives. -2. That under the present tenure your petitioners suffer great disadvantages, hardships, loss, and certain injustice, as much of the district when these lands were leased was unsettled and unroaded ; the lands were almost entirely waste lands, being bush, swamp, &c, requiring many years of labour and much outlay of capital before they became in the least reproductive, and there-

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fore the rents, which in many cases were high, were only given on the prospective value. But though the improvements are supposed to be secured to the tenants, not one-tenth will be, and on revaluation the nine-tenths will go to swell the value on which the rent is assessed, as the " improvements " in sight are a mere trifle of the actual improvements resulting from years of labour and the expenditure of capital (probably equalling three or four times the original value of the land) necessary to convert the bush and swamp wilderness into meadow land; from roading by means of rates and special loans, all paid by the tenant, no subsidy being received as in the case of Crown lands ; from the building of factories, &c, all of which directly raise the value, and all of

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experience of tbe Public Trustee in dealing with perpetual leases in Greymouth, Nelson, and elsewhere is that the arbitrators never oppress the tenant, but, if anything, favour him, and there is no reason to doubt that the same thing will occur in Taranaki when a revaluation of the petitioners' leases takes place some years hence. The complaint that "a grave injustice is suffered, as, though the improvements are the property of the tenant, the Public Trustee compels the tenants to insure all buildings in his (the Public Trustee's) name, and only in an office approved by him," is an imaginary one. The insurance is the same as in leases under the Land Transfer Act, in the joint names of the lessor and lessee. The lessee can insure with whatever company he chooses, no restriction being put upon him by the Public Trustee in favour of any particular company. 3. The drawbacks of the leases mentioned in paragraph 3 are those incident to all leaseholds. Leases granted under the West Coast Settlement Acts are very simple, and without onerous restrictions. As leaseholds they are readily mortgageable. The Advances to Settlers Office, banks, and private lenders have advanced moneys (in some cases large sums) on them. The Public Trustee consents to all mortgages that are to be registered, and knows that a great many of the leases are every year given as security for advances. The Public Trustee, in cases where the Advances to Settlers Office has advanced moneys on leaseholds, has handed the policies of insurance to that department, and, in order to help a tenant to raise money, would do tbe same with any bank or reliable private person. The statement that the leaseholds are " altogether inimical to prosperous and permanent settlement " is shown to be incorrect by the prosperous condition of those portions of Taranaki where these leases are the only form of tenure. 4. The Public Trustee, on behalf of the Natives interested, would point out that, apart from the injustice that would be done, to grant the prayer of these petitions would be to grossly violate the most solemn pledges given to the Native owners that these lands would be theirs and their children's for ever. Such promises should be sacredly kept, and the present tenure should not be altered, unless with the consent of the majority of Natives interested in the reserves. I return petitions herewith. I am, &c, J. W. POYNTON, Public Trustee. Approximate Cost of Paper.— Preparation, not given printing (1,425 copies) £1 10s.

By Authority: John Mackay, Government Printer, Wellington.—l9o4.