NATIVE RESERVES.

Auckland Star, Volume LXV, Issue 144, 20 June 1934, Page 10

NATIVE RESERVES.

PAYMENT OF RENTS. ADMINISTRATIVE FAULTS. COMMISSION HEARS EVIDENCE (By Telegraph.—Press Association.) WELLINGTON, Tuesday. Evidence on behalf of Maori beneficiaries and concerning the administration of the Native Trust Office was given at a sitting of the Native Affairs Commission in Wellington to-day. The chairman, Mr. Justice Smith, presided. On behalf of beneficiaries of the west 'coast settlement reserves in Taranaki, Mr. A. K. North stated that the West Coast Settlement Reserves Beneficiaries' Association was an incorporated body, with a membership of over 1000. The reserves consisted of an area of 71,920 acres, having a total capital value of £2,130,000. The principal complaint was that the beneficiaries had not been paid the rent due to them promptly or regularly. No interest had been paid on delayed payments. It was proposed, said witness, that statutory provision should be made for the payment of rents, when received by the Native Trustee, into a separate trust account and that definite halfyearly dates should be fixed for distribution of these rents. Compensation should be paid to the beneficiaries for hardship and loss sustained by them through unjustifiable delay in payment of the rents. Proper balance-sheets should be issued to each grant, such balancesheets to contain all proper information usually appearing in well-drawn trustee and beneficiaries' accounts, including full particulars of arrears of rent. "Boiling Point" Grievance. It was also suggested that inquiry should be made into the position regarding all unclaimed rents. The grievance, witness stated, dated from 1931 and reached boiling point after, the July payment, when only two-thirds was paid over.

Mr. H. S. King, deputy-native trustee, said, it would not be a good proposition to have a separate account for the west coast reserves. If that principle was adopted separate accounts would have to be set up for all other reserve accounts and the money might bo lying idle. It was better finance to have a common fund and have the money invested. The first delay in payments to beneficiaries occurred in 1932, continued witness. The distribution was due in Juno of that year, but a difference arose whether lessees of the land were entitled to a reduction of rentals. As soon as the opinion of the Solicitor-General that reductions under the .National. Expenditure Adjustment • Act applied was obtained, the distribution was made. The next distribution was due in December, but was delayed through 110 fault of the office. A number of applications for relief had been received and the flow of current cash, into the office had practically stopped. That prevented the office making a full distribution in December. They had held a number of local body debentures at the time, but these had been, unsaleable. Eventually they had obtained some money from the Treasury, but this was sufficient to pay out only one-third of the credit balance due to the beneficiaries for distribution. In June, 1933, the Cabinet had approved of a grant, of £10,000, but the Treasury would- not-put it through. In the end, however,; they were able to raise the money and _by September, 1933, they were able to bring the payments up to date. ' \ Further Distribution, .. *■» A further distribution had been, made in December last, said witness,- and-there-was another one starting which Avould include all payments made into ; the .office on March 31. . ' r Asked whether he thought compensation should be paid because of tie % delay in payments, Mr. King said .that iOrice the beneficiaries bad been told- of : ,the difficulties which had arisen the majority of them had been satisfied. " Mr. K. C. Sim, native agent/ 'and a' former judge of the Native Land Cqurtj appeared on ibehalf of beneficiaries other than those interested in the west coast settlement reserves. He submitted that the administration by the Native TrvjsteS had been neither beneficial nor satisfactory. "We say," he continued, "that, although, the Native Trustee was created to supply deficiencies found in these reserves, he has failed even worse than the Public Trustee. Certainly he has riot done any better;". » Witness said it was believed that there were combinations of European leaseholders, not only in the case of . the Taranaki reserves, but also with, the west coast and Nelson reserves, which defeated all attempts to get any adequate ground, rent. "• Chairman's Questions. Mr. Justice Smith: Wiltyou bring any definite allegations agaiiist the Native Trustee? " " - Witness;' Well,, broadly,- there are these:—(l) has been a failure; (2) -his financial administration also,has-failed; (3) he. has lack of officers: for making proper, inspections and supervision; of native reserves. Mr/Justice Smith: That is first definite point so far. ""Tie financial position is important seeing that the Native Trustee ha 3 been paid wholly and solely by the Maoris for even the smallest detail of office equipM r - Sim said.- "He has made a ' profit amounting in 12 years to £100,000, yet noiiv ie> is so pressed for money that he cannot pay out rents when they come due." Witness quoted a report of 12 years ago, in which it was stated that natives ■had been sub-letting their-lands for several times the original rental charged, and making in this way sometimes over £350 a year. ?.?■■ 'X Mr. Justice Smith: Do you make that allegation at the present time 1 Witness: I do. Ready Money Not Available; With regard to tie financial position ■witness alleged that the Native Trustee had so involved himself iii transactions that he had not now the ready money to meet his indebtedness. His yearly gross profits had been as high as £23,000 and had never fallen below £14,900. The expenses of upkeep' of the office had steadily risen from £5000 in • 1922 to £15,000 in 1931. He had made net profits as high as £13,000 in a year and _■ as low as £3000, but he had never shown anything other than a profit. If the administration of the Native Trust Office was not better conducted in future it would be to the advantage of the beneficiaries if it were taken back by the Public Trust. " • * • Mr. Sim said the only alternative he •would suggest was that widespreai changes should bo made in the office, such as inclusion of the services of ' officers ofvthe Nat*ve ; Land Court. i : r sChe commission adjourned until to- ] ;>aorrow morning. ~ ' 1