B.—4a,

(3) Maori Land Boards. 190. These are subject to general supervision and control by the Native Department, but operate on their own funds. Their duties are : Approval of alienations of Native land, receipt and disbursement of consideration, moneys and rentals, the administration of vested lands and statutory agencies, &c., and financial assistance to Natives generally. 191. A perusal of the foregoing illustrates the statement that there is a degree of overlapping in the present administration. 192. In addition to the above-mentioned organizations, there are various Native funds and accounts under the control of separate Boards, most of them get up in accordance with legislative authority. They are as follow : — Arawa Trust Board. Tuwharetoa Trust Board. Maori Ethnological Board. Maori Arts and Crafts Board. East Coast Commissioner. Confiscated Land Boards. Rewi-Maniapoto Memorial Committee. Ringatu Church Trust. Whakarua Trust Board. Hinerupo Trust (Te Araroa) Board. Wi Bere Trust. Ngaitahu Trust Board. Kaiapoi Reserve Board, and Maori Purposes Eund Control Board. 193. We are not concerned with most of these Boards and Committees, but mention their existence to show the different types of Native administration which have confronted us in our inquiries. 194. The financial organization, in so far as Government finances are either directly or indirectly involved, is as follows :— < (1) Native Trustee's Account. 195. This comprises trust moneys. 196. If at any time the moneys in the Native Trustee's Account should prove insufficient to meet the lawful claims thereon the Minister of Finance must, without further appropriation, pay such sums out of the Consolidated Fund as may be necessary to meet the deficiency. Any such payment out of the Consolidated Fund may be absolutely or by way of advance only, as the occasion may require. 197. Any profits earned by the Native Trustee are in the ordinary course transferred to the credit of an insurance and reserve fund, out of which the deficiency in any subsequent years may be provided. In certain circumstances profits may be paid into the Consolidated Fund. The reserves created out of profits now total approximately £100,000, but, as they have been reinvested by way of advances, they are not liquid. 198. At present the Native Trustee has no money available for investment, and, in fact, during the past year he has been unable to repay a temporary loan of £100,000 from the Treasury. (2) Native Department. 199. (a) Consolidated Fund —Permanent and annual appropriations. (b) Native Land Settlement Account, including purchase of land, surveys, expenses of consolidation schemes, development schemes, and loans to Natives. (3) Maori Land Boards' Accounts. 200. There are seven independent Boards, each of which operates on its own funds. All moneys held by Maori Land Boards form one common fund, and each Board is required to pay into the Consolidated Fund annually on account of administration expenses, both of the Board and the Court, such sum as the Native. Minister thinks fit. This is a statutory provision which came into operation in 1924, but prior to that year the salaries of Maori Land Board officials were paid out of the Consolidated Fund and were not recouped from the Boards. The Boards' funds are derived from commissions on the receipt and distribution of rents and purchase-moneys of Native lands. The Boards also have the use of moneys not immediately distributed to Native beneficiaries. 201. The Minister of Finance may make advances to Boards out of Government funds (section 340, Native Land Act, 1931), or the Boards may borrow from private sources or from any State lending Department, with the consent of the Native Minister. There is no doubt, however, in the event of the Boards getting into financial difficulties, that the State would be expected to come to the rescue, and it is therefore considered appropriate that the operations of the Boards should be reviewed along with other aspects of Native administration. (4) Various Native Boards and Trusts, whose income is derived substantially from Government • sources. 202. The foregoing will show the general scheme of Native Administration. We will now deal with the separate organizations.

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