A MOLLION MONTHLY.

Auckland Star, Volume L, Issue 210, 4 September 1919, Page 8

A MOLLION MONTHLY.

BIG. SOLDIER SETTLEMENT LOAN.

ARE PRICES TOO HIGH?

TO FINANCE SETTLEMENT SCHEME? {By Telegraph-—Parliamentary Reporter.) WELLINGTON, Wednesday. A Government bill was introduced toEight authorising a loan of 12* millions this year, two millions annually in 1P"20 and 1021, and a further million each subsequent year. The Finance Minister, Sir Jas. Allen, explained that the bill had become necessary because the authority for one and a half millions taken last year for discharged soldierseettlement became totally inadequate on March 31.- That authority was almost exhausted, and by August 31 eonmiuments had been entered into to the extent of £2.58-2,000. while there were other approved applications held up for want of money totalling £700,000. The balance therefore required to meet commitments was £2,597,000. During the last two months requirements for soldier settlements equalled a million sterling each month, and though it was estimated thS-t future requirements would be about. £300,000 monthly in order to snet teh bio- expenditure in exceso of aiujioritv. the Government had madei «se of "reserve fund securities to the: extent of £SOO.OOO. and also obtained •£l-30.000 from the Unauthorised Expendi- ! Jure Account. These sums would be .repaid from the Loan Bill authorising a loan of twelve and a half millions, with further provision of a two million loan annuailv until 1921. and a million anmiallv thereafter. Provision was made for compulsory contributions, and also to enable ■trust funds to be invested in the loan. The rate of interest was not fixed in this bill, terms being provided under tbe Xew Zealand Loan Act cv loos. Mr. Witty: Is there a maximum? Sir J-as. Allen: Not under this bill. SUPPORT FOP. itEASURE.

Sir Joseph Ward, in supporting the] bill, said that it was never contemplated! in the last financial year that so large an amount would be required so coon, bat events had marched quickly. He would at this point recall the attention | ot the House to the- much criticised £300,000 in securities in London, which was now proving- so valuable. He considered that £500.000 in London should be increased to £2,000.000 for purposes of increasing our financial stability. Comins to the bill, he said there still remains "in the hands of the Finance' LMinister £16,000,000 of unexhausted loan authorities. He bettered it a good thing that these authorities "xisted, and be also thouffht it wise on the part of the Finance Minister to ask for the full amount be bad in 'the bill. It was very necessary that he should be fully equipped" to meet any demands respecting soldier settlement and repatriation requirements. Sir John Findlay desired to know why she Government had reverted to the old ■jvstern in connection with the purchase -of land. The Land for Settlement Act provided for a'limit of compensation ■which landowners could! claim for their Sand, vet- land for soldiers was taken under "The Public "Works Act, under which landowners could secure much higher compensation for then- mud- He urged the Premier to see that some such provision as obtained in tbe Land for Settlement Act was applied to compensation to landowners for land taken for soldiers.

The Premier agreed that Sir John I'indlay was right up to a certain point, ibut he did not think there was much. difference between the different methods of the two Acts. Personally, he believed the system of taking land under the Public Works Act simpler and better for all concerned. In his opinion the operations of the Land Purchase Board had been wonderfully successful. In most cases land had been purchased at a very reasonable price, and of the large number of soldiers placed on the land there had, according to reports presented, been a very small proportion of failures. There would be losses, but they would, he believed, be very small, and it was the duty of the country to help the soldier. CPJTICISM OF —ALUFJS.

Strong criticism of the high prices paid for land wias offered by Mr. G. W. Russell, who explained' that be now felt himself- free to express his opinion on the policy of the Administration. He had made inquiries into the Kopine Estate. ilanawatu, where £39,993 was paid by the State for 412 acres, or over £ 10.00 C more than the value specified in the valu ation roll. He intended, as a duty tc the people, and to the returned soldier to mo-, c for a return showing- all the lands purchased, and the. price comparec ■with, the valuation. This would shot that many soldiers -acre .having- placed or their shoulders a responsibiiitv for in terest and capital which would niaki tiiem interest slaves for life. He eon tiered the Land Purchase Board wamisled by the high price of butterfat, winch was a wrong basis of valuation. ilr. Pearce urged that a good deal of ■tie money provided ior in"the bill be applied to petting ready for settlement from a half to three-quarters oi a million of land in the Urewera country. If production were to be increased Eoldiers should be settled as much as possible on new lands. MINISTER'S DEFENCE OF PRICES. The Hon. D. H. Guthrie, in replying to tne charges that the Government naid too high a price for land for soldiers, reminded the member for Avon that in every case of purchase it was placed, with all details, before Cabinet. If they were buying too high then it was on the best judgment available. On some of the. dearest land also settlement had been most successful. The Kopane settlement, in particular, had been, most s-.-.ccessiul, only one man on it being behind. Every possible care was being taken that ssldie'rs had a good chanced He also_ reminded the House that the men had the choice of leasehold temires besides freeholds. Mr. Parr: What about ZSTorth. Auckland

Mr. Guthrie: We have two lar<re blocks Oi land m Xcrtii Auckland. Mr. Reed-. There are no roads on them. .., r - ut frie: The intention was that bloc ss were set aside so that men woua road them themselves. able " tT But The W » Mt «■»" m " c are -- 1 iwrired soldiers ST*25 * * ****• 1 know soldiers \ iD a Mot for four v ??.*¥.*** still want land. ICt ~ W *■ tiiou^"f*"~ te L_ Ilt ' ent on to say that - the Government! held. **«*£*££ £ * J* 3 *"* acres iv the - ' - *»* been unaMe to-deal

with it up to the ipresent owing to privately-owned Mocks lying within the area* He hoped, however, he would shortly he able to get these 'rands ready for settlement. If finances did not run out temporarily the Government would have settled 5000 men. They came in a rush, for only two applied prior to March, 1016. MORE LOCAL KXOWLEDGE NEEDED. Mr. 'Buddo strongly urged the Government to set up additional authorities for land purchase, as the present board was overworked. He was glad to hear from the Minister of Lands, with whom he liad foeen in communication, that there was a proposal to have local committees comprising men of good standing who would assist the land purchase authorities. While not prepared to deny that prices were high, whatever came about, the Minister of 'Lands should not wait for the possibility of lower values, because they were not coming down. The Government should provide the House with full particulars of expenditure on the war account.

This bill, said ?.fr. Ell, is another indication of the extent of the country's gratitude to returned men. He approved the proposal for local committees assisting in the pur-ihase of land.

Mr. Reed sa ; d he was not satisfied altogether with the administration of the scheme. More local knowledge ought to be utilised in connection with purchases. There were large areas of bush country north of Auckland available, but it was criminal to ask 6oldiers to repeat the unfortunate experience of the pioneers who went away back, and were denied road access for years. Soldiers would have a far better chance in the bush areas than taking up improved 'lands, provided roads were made. It was incorrect to suggest that labour was not availartle for backblocks roading in the northern districts. BAY OF PLEXTY LAXD. Mr. W. D. S. Mac Donald expressed the opinion that it was good to err on the side of caution. It was no good putting j the returned soldier on the land unless the proposition promised to be a good one for him. Many experienced men would hesitate to take on propositions advocated for returned soldiers. So far as settlement prospects were concerned, j he was convinced the greatest prospects in the country lay in the Bay of Plenty. There were, in one portion of his elec-

torate, nearly forty estates, ranging i I from 3,000 to 38,000 acres in area, each I . j owned by one man. There was oppori trinity for soldier settlement, and he ' | trusted the Minister would do something I towards developing the soldier settleJ ment in the Bay of Plenty. ' NATIVE POFXT OF VIEW. ! Air. A. T. iXgata expressed appreciation of what the Xative Minister had done in respect of native lauds. Although the Minister was at present under a cloud, he felt as a political opponent it was due to him to express his ' appreciation of the Minister's work. Many members spoke about the operatipns of the -Native -Department very glibly, but with very superficial and im- : perfect knowledge. Up to June, 1918, . for instance, the Government bad ac- . quired24B,loß acresintheUrewera country out of a total block of 650,000 acres, ' and up to no-.v 330,000 acres had been purchased, 'lne country acquired by the Crown was the finest in the block with the exception of the area on the western side. When Mr. Herries took the portfolio in 191?. the Minister's policy differed entirely from the speaker's, but the Minister ccarried out 'his policy, which was a reversion to that of Sir -John Mackenzie, the procedure being simple. The whole block was plastered with a proclamation to warn off all the world against purchasing from the natives. The Government had no competition, the valuation being put on by the Crown. The best of Urewera country was purchased at 17/6 per acre, down to 12/6 per acre. Purchase of native lands by the Crown was almost the sole safety valve in the soldier settlements, as it could be got cheaply. The only quarrel the countrj- could find with the Xative Minister's operations in Gisborne and the Bay of Plenty was that he was not active enough in pushing on the preparation of the native land acquired by the Crown. He begrudged cutting out Crown areas for fear the process would send up Maori areas another half-crown per acre. Xo class had done less profiteering in land than the native owners of unoccupied land. The Government had badly failed in doing enough to prepare land for soldiers. More returned men could have been uti- i lised for this purpose. He was assured by an officer who had been at the front | that the Maori Pioneer Battalion was ! the best pioneer battalion in the world, and its skill and resource should not j • be lost to the country for development work. Parties of these men were organ- , ised in two East Coast centres, under - oSeers who had been with them at the I front, but the best the Public Works De- - partment could do was to offer the offi- > 1 cers 12/S a day as a sort of timekeeper. , | They were a link between the Depart- !• J ment and the mon. but a promising cxl periment was ruined at its inception, >' and both officers had given up the posii tjon. Thus the project was spoiled, not - because the Public Works Department i lacked sympathy, hut because it was - out of date. This, added Mr. Ngata, is 5 an example of how not to repatriate , i soldiers.

-Sir -Tames Allen rose at 3.30. Answering Labour criticisms, he declared that the Government bad plenty of money, but was short- of authority to spend it. Every source was exhausted from which money could bo obtained far soldiers' settlement purposes, and applications totalling £0(10.000 awaited to be satisfied. It was necessary therefore that the bill be imniejdiately passed. lie denied also that the j Government was pandering to wealth by j providing for tax free interest. If it i were possible to raise money, subject to | income tax. then the tax would be imj posed, but it was imperative for money to be obtained quickly. He -did not think the benefit would •be very material to | lenders if the interest were fixed at 4£ j per cent free of tax.

The Labour group continued its attempt to end the principle of freedom from income tax when the committee stage was reached, challenging the Government to pet the opinion of all the Returned Soldiers' Associations on the subject.

Mr. McCombs moved an amendment in the direction of making the interest on the loan tax-bearing. The Premier appealed to the House to accept the bill a.-, it stood, declaring that it would mean very serious delay if taxbearing interest were insisted upon without option. The loan was really a war loan, and he hoped at this late period of the war the Parliament would do the right thing and help the Government to put the bill through without amendment. jHe believed money had been obtained in Xew Zealand at a lower rate and on beti ter terms during the war than in any other eountrv.

A division was taken at 5.15 a.m.. the amendment being rejected by 21 to 17. The bill passed all its stages, and the House adjourned at •5.25 a,ni, " .