8.—6

XVII

The five districts in which land is most required for close settlement are Hawke's Bay, Wairarapa, Marlborough, North Canterbury, and North Otago ; and, given the necessary means, our intention this year is, if possible, to double the purchases of the preceding year. There are other districts that in a lesser degree have eligible estates for subdivision. The Auckland Provincial District suffers in this respect, but there has been a large sum expended in the purchase of Native lands, roading and surveying same, as well as in the purchase of several large estates. There is no good ground for complaint, the demands for land in this part of the colony being fairly met. It was thought by many that the graduated land-tax and tax on absentees would have the effect of causing subdivision, and thus promoting close settlement. Such, however, has not been the result. It has been urged upon the Government that the time was ripe for bringing into line direct and indirect taxation, and thus furthering subdivision and increasing the number of small holdings, thus placing a larger number of people on the land. This seems feasible and justifiable at the first glance, but on investigation it will be found that the land comprised within very many of these large estates is entirely unsuited for agriculture or close settlement. Under these circumstances, the Government have come to the conclusion that evolution by purchase is more equitable than taxation, seeing that many who would pay the increased taxation could not cut up or sell their estates : neither would the Government purchase. In other words, where lands are suitable for close settlement, and the necessity exists for providing land wherewith to satisfy the existing earth-hunger, it is by far the wisest course to carry out a vigorous land-for-settlement-purchase policy. This will be done both in the interest of our farming community and also the wage-earners. Land for workmen's homes near the large centres of population must be acquired more expeditiously in the future than it has in the past. In order to encourage the punctual payments of rent, it is proposed to obtain the authority of Parliament to grant a rebate of one-tenth of each half-yearly instalment of rent, equal to per cent., provided the tenant pays within a limited period after the rent falls due. REBATE EENTS, CBOWN TENANTS. The returns in connection with the settlement of the people on the land have disclosed the fact that we have a very large number of Crown tenants, and it is natural to anticipate that the number will yearly increase. Grievances of various kinds must undoubtedly be expected. In some cases the grievance is in regard to the rent, which is claimed to be too high: the Fair Kent Bill is the remedy for this. In others the complaint refers to the size of the sections. If mistakes were made in the classification of the land they should be remedied; and if the sections were large enough when the subdivisions took place, and subsequent changes now render it impossible for tenants to make a living, it is in the best interests of both the State and tenants that amalgamation should be promoted. The law provides for this ; but complaints are made that the Land Boards refuse to give effect to the wishes of the Legislature. It is necessary that tenants should be punctual in the payment of their rents; and I desire to say, inter alia, that, considering that on the 31st March, 1890, out of 11,684 Crown tenants no less than 3,785 were in arrear with their rents to the amount of £52,891, and that such arrears had been reduced on the 31st March last to £16,000, owing by 1,709 tenants, whilst the total number had increased to 16,406, the colony has every reason to congratulate itself on the improved position. To promote the punctual payment of interest due under the Advances to Settlers Act, a rebate is given of \ per cent. Eeductions were made of \ per cent, to the local bodies under the Loans to Local Bodies Act. In order to encourage the punctual payment of rent under the Land for Settlements Act it is proposed that the following provisions shall apply in the case of land already disposed of or hereafter to be disposed of by way of lease : The lessee, not being in arrear with any previous instalment of rent or other money payable under his lease, is to be entitled to a rebate of one-tenth in—B. 6.