8.—6.

(c.) The tenant under a 66-years lease to have power to pay capital sums to the extent in all of not more than 90 per cent, of the total capital value of the land, the rent being reduced by the interest on the sums so paid; (d.) When 50 per cent, of the capital value has been so paid, all restrictive covenants to be removed, and the tenant to hold thereafter on terms of paying the abated rent. (c.) All capital sums so paid to be refunded at the end of the term. (/.) At the end of the term the land to be offered again for lease, burdened with the value of improvements to be paid by the incoming to the outgoing tenant. (g.) Tenants under 999-years leases (including leases under the Land for Settlements Act) to have the option of converting into the new— and this at either the original or the present value. (It.) Tenants under old leases (not including leases under the Land for Settlements Act) to have the additional option of surrendering the leases, when the land will be sold by public competition, burdened with valuation for improvements; the proceeds of all such sales to be paid into the Land for Settlements Account, so as to be solely available for acquiring improved lands for disposal under the Land for Settlements Act. This means that the tenant of a Land-for-Settlement lease may convert, but cannot surrender. Other tenants- may either convert or surrender, and if they surrender they will receive the value of their improvements when the land is sold. Another modification of the law will be made enabling a person to add to his holding in cases where its area does not exceed the statutory limit. The Government is strongly of opinion that the aggregation of large areas in single hands is not to the advantage of the State. It therefore proposes to fix a limit—say, £50,000 capital unimproved value—beyond which it shall not be lawful for any person to hold land, with provision for the gradual reduction, say, within ten years, of areas now in excess of the limit. The residential conditions of the Land Act are essential to the satisfactory settlement of the land, but the Government thinks that they may be safely modified in favour of persons whose avocations confine them to the town, but are desirous of taking up land as a provision for themselves or their families. Proposals will be submitted for granting this concession under regulations carefully framed to prevent abuse. I trust that in considering these proposals honourable members, whether favouring the leasehold or the freehold system, will recognise that the Government is making an honest and straightforward attempt to meet defects which undoubtedly exist. The necessity of reform is admitted on all sides, and lam hopeful that, having regard to the magnitude of the public and private interests involved, the matter will be approached in the calm and dispassionate spirit its importance demands. My colleague will place before you facts and details which I cannot be expected to give in this statement, and in the meantime I express my hope that the proposals will be acceptable to the people of the colony, and also to the Crown tenans concerned, whether they hold under the Land for Settlements Act or otherwise. NATIVE LANDS. There are large areas of Native land lying idle and uncultivated. This is not entirely the fault of the Maori owners, who have had great difficulties to contend with, though, too often, they are saddled with the blame. The Maori dare not cultivate land until his ownership to it has been ascertained: what person would cultivate land on the off chance that he might afterwards get a title to it ? There are other cases where the title has been ascertained, but the block has not been partitioned up to such a point that each owner can say where his own piece of land is, or a family can feel assured as to the allocation of their estate, ,

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