8.—6

to the various private organizations for supplies and assistance which were immediately forthcoming. The various Government Departments were called upon for tents and medical and other supplies, &c, and railway facilities were made available, free of charge, for the carriage of goods and the transport of refugees from the earthquake areas. Following upon the more urgent relief work, road and railway repairs were put in hand, and complete temporary communication was quickly restored. In the meantime, local committees were organized, and these attended in a very efficient and expeditious manner to the distribution of food, clothing, and the provision of accommodation, in order to ensure that none were in want. Right throughout New Zealand —and, indeed, throughout the Empire—there was a spontaneous response in providing funds for the relief of distress, and to date a total sum of approximately £381,000 has been received in voluntary subscriptions. Following the experience in connection with the Murchison earthquake, a central fund was established and a Central Committee formed to co-ordinate the various relief activities in the affected areas, and to ensure that the best possible use is made of the funds subscribed. The fund is being administered by the Public Trustee as executive officer of the Central Committee, and the accounts are subject to audit by the Controller and Auditor-General. No organizing or administrative costs will be charged against the relief fund, so that the whole of the amount subscribed will be directly applied in relief of distress caused by the earthquake. As a preliminary to restoration, a fairly general liquidation of the liabilities existing at the time was obviously necessary, and a special Court—the Hawke's Bay Adjustment Court —was set up and given wide powers to deal with this phase of the matter. To facilitate the actual work of restoration, a Rehabilitation Committee was set up to investigate claims and make recommendations to the Government as to the extent and nature of assistance to be granted. As will be readily appreciated, the State has been committed to considerable expense in connection with the restoration and rehabilitation of the affected areas. Restoration of and repairs to roads, schools, and public buildings, &c, are estimated to cost approximately £500,000, resurveys and restoration of land transfer titles, &c, a further £150,000, while sundry grants, including an amount of approximately £85,000 representing ex gratia payments by the State Fire Insurance Office, account for a further £110,000. The Government has also made sundry grants from the Consolidated Fund for relief of immediate distress, clearing of streets, re-erection of chimneys in private residences, &c. In addition, provision was made in the Hawke's Bay Earthquake Act, 1931, authorizing the Government to make use of reserve funds to the extent of £1,500,000 to enable loans and grants to be made both to local authorities and to private persons, with a view to enabling rehabilitation to be speedily effected in the earthquake areas. Thus the total expenditure from public funds will amount to over £2,250,000. Pending complete rehabilitation, the towns concerned are being resurveyed and laid out in accordance with modern town-planning principles. Occupational activities are now in full swing again, and in the near future we may expect the district concerned to be restored to its previous position of being one of the most productive and prosperous in the Dominion. LAND-SETTLEMENT. The Government fully recognizes the necessity, especially in a primary producing country such as New Zealand, for the prosecution of a vigorous policy of land development and settlement, and since assuming office has taken all steps possible both to bring into production all idle lands and to foster closer settlement. The matter is of particular importance at the present time owing to the necessity for increasing the Dominion's exports to offset the reduction in prices received in the overseas markets, and also with a view to assisting in the relief of unemployed. ! Successful land-development is one of the best possible means in which the financial position generally may be improved, for primary production is the basic industry of the Dominion, and increased purchasing-power for the farmers means better times for the rest of the community.

Public subscriptions.

Hawke's Bay Adjustment Court and Rehabilitation Committee.

State expenditure.

Land-settlement,

12