1.-15

only when a profit results from the farming operations is too fortuitous a basis for local-body budgeting and places an undue burden on the other ratepayers in the territory. It is true that the State frequently carries out important development work in relation to roads and road maintenance, and this should be taken into account in assessing the payment,* but as a general principle the Crown should be responsible for full rates on such property. The Lands Department also owns certain properties in boroughs and towns and also residential areas in some counties. In these cases the Department pays the special rates for which it is liable and, in addition, pays in respect of all other rates levied during the year an amount which bears the same proportion to these rates as the amount of rent received during the year bears to the total rent for that year, subject, however, to the proviso that the total liability to the Crown is not to exceed one half of the total rent received. The following table shows the amount of rates paid by the Lands and Survey Department during the year for developmental farms. The table shows fairly conclusively that although in theory the principle on which the Department is working is unsatisfactory, in actual fact the Department has paid a very large proportion of the rates which would normally accrue on this landf. A more satisfactory principle, however, should be enunciated in respect of such developmental farms Table showing Rates payable and paid by the Lands and Survey Department in this year ended 31st March, 1944 £ s. d. Total rates for year ended 31st March, 1944 .. .. .. 7,972 1 0 Payments — £ s. d. Special rates for which Crown is liable (forty-seven blocks) .. .. .. 1,192 14 4 Grants in lieu of rates on forty-three blocks . . 3,880 5 1 —— — 5,072 19 5 Rates unpaid .. .. .. .. .. .. £2,899 1 7 Number of blocks which made profits and for which grants paid . . 40 Number of blocks which made profits but for which there was no grant .. 1 Number of blocks which made losses but in respect of which grants were made (roads used mainly by Department) .. .. .. .. 3 Number of blocks which made losses (no grants paid); special rates paid where due 35 Total number of blocks in respect of which rates were struck .. 79

Table showing, by Counties, Amounts of Rates on Crown Land paid by Lands and Survey Department for the Year ended 31st March, 1944

119

Total Rates, r > , Year ended Special n , T , . County. glgt March; RateSi Grants. Remarks. 1944. £ s. d. £ s. cl. £ s. d. Waitomo .. 1,703 7 9 312 13 7 1,168 16 0 Otorohanga .. 358 14 0 66 7 6 166 6 8 Raglan . . 17 4 0 11 7 6 Nil Taumarunui .. 5 17 7 Nil .. A grant in lieu> was paid out of profits earned in year ended 30th June, 1943 for the rating year ended 31st March, 1943. Waimarino .. 296 9 6 40 6 0 239 5 11 Waipa .. 126 3 7 14 12 9 8 12 8 Hobson .. 64 15 0 15 7 7 Nil A rate demand for 1943- 44 was not received, although the County Council was fully aware that the Department was legally liable for special rates. Whakatane .. 117 12 6 31 12 9 Nil The amount of £117 12s. 6d. is the total rate on the Orini Subdivision of the Edgecumbe Block. The £31 12s. 9d. is special rates on Orini. The balance of the Edgecumbe Block is Crown land which has never yet been assessed for rating purposes. Mangonui .. 213 15 11 19 10 10 194 5 I Rodney .. 102 9 2 Nil Nil Crown land. Waitemata .. 121 19 4 8 8 3 113 11 1 * On the other hand, the Crown in its developmental work does use county roads for carting supplies and there was some evidence to the effect that some county roads were being badly cut up in the process at the present time. f The following two tables are given to show that the Lands and Survey Department has paid a considerable proportion of the rates which would have boon payable by a private individual.