29

C—9a

In regard to wet and swampy settlements (referred to in paragraph 3a), we are of opinion that several of these settlements cannot be satisfactorily drained unless by some comprehensive scheme: we recommend that this be undertaken by the Department, and a rate struck to cover cost. Marlborough Land District. Recommendations are made on each individual case, but include—Remissions of rent and interest; reductions in capital on mortgage,; revaluation ; additional advances on current account ; pdstponements of rent and instalments; postponed or reduced rents to be recovered if lessee sells at a profit; grouping of sections and rearranging of mortgages. Nelson Land District. Recommendations regarding assistance, financial or otherwise, are given under the previous (leading, and may be summarized as follows : — (a.) Postponement of all rents and interests due for a minimum period of one year, and the position reviewed to ascertain if the settler is deserving of a further postponement. (b.) In cases where settlers paid too much for the land, a revaluation to be made, and corresponding reduction in rent and interest. (c.) Where there are second private mortgages the Crown, in the event of a reduction in. the first mortgage, to have power to reduce the principal owing under the second mortgage. (d.) Arrears not to be written off but extended over a period of, say, seven years. (c.) That other employment be found for those settlers who have failed and are obliged to leave their farms. Westland Land District. We are of opinion that in place of money advances it w r ould. be better to help by remission or suspension and postponement of payments accruing due, according to the circumstances in each case. We think the settlers are not sufficiently conscious of the fact that every additional amount borrowed has to be paid back with interest, thus adding to their annual burden. By rendering assistance in the way indicated the settlor would realize that it is out of his earnings that he must meet his obligations, and we feel sure that this course would result in more careful expenditure arid better management. Every case has its own peculiar feature, and it would be impossible to devise a rule that would meet every condition. We suggest that the Land Board should be given wide discretionary powers .to enable it to deal satisfactorily with the cases coming before it. We suggest interest instead of capital reductions, for the following reasons : (1) It would discourage second mortgages and preserve the State's capital value ; (2) it is a flexible and easily adjusted method of assistance ; (3) protect the State's interest in cases of sale by the settler ; (4) can be capitalized and final payment postponed when the prospects justify such a course. Canterbury Land District. Remission of rent; reduction of rent; remission of instalments, principal and interest; remission of interest; reduction of capital value of land ; increased financial assistance tor buildings and stock. Otago Land District. Apart from the recommendations made earlier in this report and from those contained in the individual reports, it should be accepted as a general principle in dealing with all matters arising therefrom that it is essential at this stage to re-establish on a sound financial basis all good, settlers who have practically got into a state of bankruptcy through no fault of their own. Each case should be dealt with on its merits. If it is decided to reduce capital values or rents, or write down advances against land, we repeat the recommendations made in the Gladbrook report —" In all cases where the, original capital value, &c, is reduced, tenants who may subsequently, and within a period of ten years, dispose of their holdings shall pay to the Crown 75 per cent, of the amount of any goodwill received as shall be in excess of the then actual value of all permanent improvements." Arrears of Rent and Interest. —This is a very difficult problem. There are tenants who, through self-denial and perseverance, have done their best to meet engagements, but are still in arrears ; there is another class who, similarly situated, did not make any special effort to pay ; there are those who, no matter how much they tried, were up against inevitable failure through climatic conditions and consequent failure in their operations; some had originally more capital than others, and devoted part of it to payment of rent which could not be paid from revenue. There are cases where a tenant's liabilities now exceed his assets, and he cannot be expected to meet his arrears out of revenue ; others whose balance-sheet discloses a surplus of visible assets over liabilities but no liquid assets. In the latter case, arrears could be converted into a loan, as a charge, or additional charge, against such assets. In the former case it seems to me the only alternative is to write off such amount as is in excess of visible capital. Our opinion, after giving the matter of arrears careful consideration, is that each case should be considered and dealt with on its merits, and in conjunction with the revision of capital value. There are cases, for instance, where an allowance regarding rent may meet the position instead of a reduction in capital valhes. An effort should be made to place settlers in such a position that their current accounts for stock and chattels advances can be taken over by regular stock and station agents. The Crown is not in a position to satisfactorily handle this class of business, and it would be better for all concerned if it were eliminated from the functions of the Lands Department. The stock and station agents have