C—l 4.

XXVIII

to the same extent, They recommend, if these Native lands are not purchased by the Crown, that in any legislation giving effect to the recommendations of the Commission there should be provision made that any rates levied shall be capable of being collected as if from a European, and not only after reference to the Native Minister. It is also recommended that similar powers of resumption of riverine lands for the construction of stop-banks and other works should be enforceable against Native lands without compensation, as is proposed for lands. Estimates, £150,000. —Annual expenditure. Whilst the Commissioners have not been enabled to make estimates in greai detail, they have satisfied themselves that the works they recommend, including payment of the compassionate allowances for damage by floods, and including the plant necessary to execute the works, can be carried out probably for £130,000. But, in order that there may be sufficient funds, they recommend that provision should be made for a Government loan to the new Board of the sum of £150,000, which it is presumed can be provided at a rate of 4i- per cent to cover interest and the extinction of the loan, or an annual charge during the existence of the loan of ... ••• ••• ■•• ••■ £6,750 For annual upkeep of the works after completion, for dredging where and when it is required, with office, engineering, and management expenses, including cost of collection of rates, and of elections, the Commission think a liberal allowance would be ... ... 3,250 Or a total annual expenditure to be provided of ... ... ... £10,000 In the proportions recommended by the Commission the gold duty would bear one-half, or a maximum of ... ... . • • £5,000 the mining interests would bear one-sixth, or a maximum of ... 1,667 the Consolidated Fund would bear one-sixth, or a maximum of ... 1,667 rates from the new district would bear one-sixth, or a maximum of ... 1,667 £10,000 Charge per ton of ore on mines. Upon the present output of about 550,000 tons of ore treated per annum, the proposed charge amounts to less than fd. per ton—a tax which cannot affect the working of any low-grade ore, and an amount which it is believed the mining industry can well afford to contribute towards a solution of the difficulty. Rating on lands. The rates on the new district would probably be divided into three classes under the scheme laid down in the River Boards Act, and be assessed at different rates upon the three classes of land interested— i.e., upon those lands directly benefited by the works; upon those lands benefited, but not to so great an extent; and upon those lands deriving no direct benefit from the works, but which, being within the drainage area, contribute to the flooding by letting down the waters more rapidly than would have been the case in a state of nature. Drainage Board. The Commissioners recommend that, in the special legislation which they presume will be needed to give effect to their recommendation, the new Board should be constituted not only a River but a Drainage Board, and that the beneficial and operative clauses of the Land Drainage Act be embodied. As much of the lands on the western side of the Waihou River are at levels that require systematic draining if they are to be made fit for settlement and are to be brought into satisfactory cultivation, and as such drainage must be largely to the Waihou River, it appears to your Commissioners that, in order to prevent overlapping of or interference of duties, the matter of arterial drainage should be intrusted to the new local body, and be carried out as a pari