E.—ll

6

Hawke's Bay Provincial District. The amount set down as estimated present capital value of the leased reserves " includes the total value of the interests of lessors and lessees combined." " Almost the whole of the unleased reserves are lands covered with forest. The Governor by a Proclamation issued the Ist April, 1884, at the request of the Commissioners, declared that 9,700 acres of the forest land referred to should be sold, subject to the provisions of ' The Land Act, 1877.' Of this area, 3,410 acres are set apart under the perpetual-leasing system ; the remainder is in course of survey for sale." " The Commissioners recently offered several forest-clad sections for lease for a term of twentyone years, under their ordinary conditions; but very few were taken up. Without conditions relating to valuations for improvements on such lands, settlers are not inclined to lease them for so short a term. It is intended at an early date to offer the unleased sections referred to on more favourable terms than when last submitted, and there is a very good prospect of the majority of them being taken up if the conditions of lease allow of a valuation for improvements." Conditions of Lease. —"l. The upset price or highest bidding, as the case may be, shall be the amount payable by way of annual rent during the first seven years; the annual rent payable for the next seven years shall be one-fourth more than the amount of such upset price or highest bidding; and, if leased for a term of twenty-one years, the annual rent payable for the last seven years shall be one-half more than the amount of such upset price or highest bidding. The Commissioners may, however, in such cases as they think fit, offer reserves for lease at an even annual rental for the whole term. Where town lands are leased for more than twenty-one years, special conditions as to rent and otherwise may be made if the Commissioners consider it advisable. 2. The lessee shall pay the rent half-yearly, in advance, and shall also bear and pay all taxes, rates, charges, assessments, or impositions, either already made or which may afterwards be made upon or in respect of the lands, and any buildings and improvements which may be made thereon, whether chargeable against owner or occupier. 3. Should the rent not be paid punctually when due, interest at the rate of 10 per cent, per annum shall be charged thereon, from the date on which the same may be due up to the day of payment. If the lessee shall fall six calendar months in arrear of rent, or fail to perform any of the conditions of the lease, the lessors shall have power, without any formal demand having been made, to re-enter and take possession of the premises, and to let, use, and dispose thereof as they shall think fit; but the lessee shall not be thereby discharged from liability for rent due or growing due at the time of such entry, or for or on account of any previous breach or breaches of any of the covenants or conditions on his part contained or implied in the lease. 4. The lessee shall not assign the premises leased without the consent in writing of the lessors previously obtained. 5. The lessee shall not be allowed to erect buildings on any town land unless the plans have been approved by the lessors; and all buildings, fencing, and fixtures on the land shall be kept in good and tenantable repair, and be insured at the cost of the lessee, in the name of the Commissioners, to at least one-half of the cost of buildings, &c, in some responsible company in Napier, to be approved of by the Commissioners : Provided that all moneys received in respect of insurance shall be forthwith applied in or towards rebuilding or repairing the buildings destroyed or damaged by fire. 6. The lessee of any rural or pastoral land shall, if required, surrender sufficient land as a site for school premises, such site not to exceed five acres, for which a reduction in rent shall be made, as may be mutually agreed on or settled by arbitration. 7. A lease shall be granted in terms of the conditions of sale and these regulations, and the purchaser shall be bound to accept and take the said lease upon the terms aforesaid, and to execute a counterpart thereof immediately on the execution of the said lease, and to pay for the said lease and counterpart thereof, and all other fees in connection therewith. If any lessee fails to execute his or her lease within one month after the date on which the land was let, the Commissioners may again offer such land for lease, and rent paid by any person at date of first letting shall become forfeietd. 8. Eesorves may be withdrawn at any time prior to auction." Nelson Provincial District. " The general length of term is fourteen years, but there has been as yet no special distinction made between the different classes of land." Conditions of Lease. —" 1. The lessee shall pay all rates and taxes which shall at any time become payable in respect of the lands leased. 2. He shall not, during the term of the lease, assign, underlet, or otherwise dispose of the reserve or any part of it, otherwise than by will; with the consent in writing of the Commissioners first obtained he may assign the lease, estate, and interest in the entire property. 3. If at any time during the currency of the lease the rent or any portion of it shall be in arrear and unpaid for six months the lessee shall pay double the rent so in arrear. 4. If the double rent or any part of it shall be unpaid for six months after it ought to have been paid, or in case of the breach or non-performance of any of the conditions of the lease, the Commissioners may, if they think fit, cancel the lease and reoccupy the property." Canterbury Provincial District. " The area and value of reserves not leased is very small. These have been advertised 'To Let,' but in no case was any tender received; so the amount put down as probable annual income if leased is only contingent upon any -one being induced to take them. The 997 acres in the Ashley County is contained in one reserve of very poor, stony plain, in a very out-of-the-way part of the country, and the configuration of the reserve is such that to enclose it with a fence would be very costly: hence the difficulty of getting any one to tender. The remainder of unlet land is contained in three reserves in three different counties, and is comparatively valueless, being stony in two cases and sandy hill in the other."