8.—2

9

It is clear, however, if this is done, that some equivalent must be found to enable those counties containing a large area of Maori land to carry out the duties we are imposing upon them. If, therefore, we are compelled by considerations of public policy to depart in this way from the principle of the Bill, it is clear that the cost of exemption should fall upon the colony at large, and not upon the localities on which burdens are imposed upon the assumption that all the land will contribute its fair share of the local taxation. It is proposed to limit the amount of ordinary rates leviable upon Maori country lands to one-half the rate levied on the ordinary land in the district in which they lie, but not exceeding 6d. in the pound ; and upon waste lands of the Crown Is. in the pound upon the annual value. These lands being practically unrepresented in the local governing bodies, this limitation is not, I think, unreasonable. To simplify matters, and avoid expense and dispute, it is further proposed to attach two Schedules to the Bill —one showing, for rating purposes, the estimated acreage and value of the Crown land in each county and Boad Board district; and the other affording similar information with regard to Maori land. The land, in each case, will be divided into two classes, pastoral and agricultural; valued respectively at 6s. Bd. and 20s. per acre. These Schedules will always enable the rateable value of Crown and Maori lands in any district to be ascertained, notwithstanding that sales go on from time to time, by simply deducting from the amount fixed in the Schedule 6s. Bd. or 20s. per acre, as the case may be, for all lands sold according to its class. The total estimated value of Maori land is £6,370,000, but of this only £5,200,000 is situated in counties in which the Counties Act is in operation. All lands, then, being subject to rating, with the exceptions I have just stated, the Committee will naturally wish to know out of what fund the rates on Crown lands and property, and Maori lands, are to be paid. But, Sir, these are by no means the only objects for which money has to be provided. In any satisfactory scheme of local finance, means must be found to construct our main roads •throughout the colony; some provision must be made to repair damage done by flood and tempest to our roads and bridges ; and some help must be extended, if possible, to our district roads. This, then, brings me to the second Bill to which I referred as necessary to give effect to our proposals. The title of the Bill will be the Local Public Works Bill. It provides for the constitution of an unpaid Board, consisting of the Minister for Public Works, the Engineer-in-Chief, the Surveyor-General, and the Public Trustee. The duties of the Board will be to pay the rates on all waste lands of the Crown, to pay the rates on the Maori country lands, to make grants in aid of the construction of main roads, and to advance money to construct district roads. This will be done from funds the constitution of which I will now describe. As I have before said, we shall ask Parliament to set apart the proceeds of land sales for special purposes, not permitting it to be used for the ordinary expenses of Government, charging against it only the cost of its administration, including survey. Now I think that, after this year, we may fairly estimate the annual receipts from land sales for some years to come at not less than £300,000. I believe honorable members will agree with me that this is a moderate estimate, looking at the fact that our unsold lands are estimated, at a low average, as worth £12,500,000. I think we may therefore reasonably expect to realize not less than £300,000 a year for some time to come. The charges on the Land Revenue should not exceed £140,000 a year, so that, should we only get from land sales £300,000 a year, there will be a balance to credit of at least £160,000. The Bill with which I am now dealing provides that, out of the balance of the land sales, after paying the expenses of administration, there shall be paid to the Board each year the sum of £150,000. If, however, the land sales should not in any year produce a surplus of £150,000, then such a less amount only as the sales may produce will be paid to the Board. I have estimated the land sales this year at only £200,000 : it is possible that they may produce more, but I have not, after careful consultation with the department, thought it prudent to estimate it at more than that amount. The cost of administration and charges is set down at 2—B. 2.