NATIVE LEASES.

Dominion, Volume 2, Issue 467, 27 March 1909, Page 13

NATIVE LEASES.

A TAUMARUNUI CRIEVANCE.

DISABILITIES OF TENURE AND ■'TAXATION.. 'WHERE THE'MAORI-SCORES. It is a long-standing grievance of Taumarunui settlers that their land is held on Native leases, and the? cannot obtain the i freehold of their properties. Desiro for the freehold and dislike of a Nativo lease seem to be equally strong omotions in tho breast of most New Zealanders. Tho Taumarunui ■leases are for periods of 21 years, and tho settlers say that there is no encouragement for them to erect permanent buildings, and make tho best of their holdings, since, when tho leases expire, the Native owners will reap the benefit, It is stated that this fear of the future is having a serious effect upon tho prospects of Taumarunui.' Situated at the junction of the Wanganui River and Main Trunk Railway routes, this placo should have a splendid future before it, but tho special circumstances of land tenure, it is 'said,, are threatening its greatness in the bud. .-.The owner of a 21 years' lease is not likely to erect permanent and expensive buildings for tho benefit of the Nativo owner or future lessees. A cheap and nasty building of white pine may' be expected to last'his'term, with luck, and buildings of this class, it is alleged, tend to become the fashion in Taumarunui. Their I erection bodes ill for the futuro dignity and attractions of tho township. It is also complained that all the taxes are borne by the lessees, while tho Native -owners 'of large surrounding areas of land, which are not leased, enjoy immunity from taxation. The Official View-Point, 'This is-the plaint of Taumarunui,' which again and again has reached the dull ears of Ministers, and' is understood to be at tho present timo under consideration by the Cabinet. Another sido to tho case' is offi-cially-put forward, and was' thus explained to a Dominion representative. The lands are dealt with under regulations made' in February, 1903. The leases aro for 21 years, 'and it is a condition of tho leases that, not sooner than nine months or later than sis months before the expiration of the term (21 years) two separate valuations shall be made in tho manner laid down by sections 79 and 80 of the Land Act of 1892, so that the lessee, if he wishes to'obtain renewal of tho lease, may do so for a further period of-.21 years.' It is provided that the rental of the renewed lease shall be. assessed at the rate of 5 per cent, on the unimproved value of the land, so that the lessee, it is claimed, has full protection for his improvements. In the printed forms of lease theso provisions are expressed . as ■■■ follow:—"The lessee, faithfully observing -and performing ■ all the covenants, conditions, and agreements on his part herein contained or implied, shall on the expiration by 'effluxion 'of time 'of .* the original-and every renewed term, have a recurrent right, of renewal of. the lease, or to valuation for all substantial improvements of'a permanent' sort made or owned ,by him and then existing on the demised land." It is claimed that this "recurrent right of renewal" is really equivalent to a perpetual leaso. The tenure on which tho Taumarunui' sections aro : held, it has been . stated hy the .Native Department, is very similar to a Glasgow lease, 'since the lessees have a recurrent . right' 'of renewal, . the rental on the expiration of the original term and of each renewed term being based on tho then value of tho land. It is claimed that tho tenure is quite as good •as • valuablo leases which- aro taken of land belonging to the Wellington Harbour Board, and that Taumarunui settlers can erect the finest and most lasting buildings they desire, and im--...prove their towship.ito,,,their, hearts' desire, .'/bccuto in the inowledgoitbat".'their leases .'cannot betaken from them,, and' that they • cannot .be penalised for their improvements. It is suggested that the sole reason why the -settlers complain, is that under a leasehold system the speculative olement in land dealing cannot find full scope, and it is suggested that that is a good thing for Taumarunui. Real Disabilities. For several reasons, however, this departmental explanation will'probably fail to satisfy the settlers. Although, when now rents are fixed on tho renewal of their leases, the residents will not be directly penalised on account of tho improvements they may make the general effect of these must certainly be to enhance the so-called unimproved value of the township, and their rentals will be increased to that extent. At present the settlers are paying very moderate rentals for average rent is said to bo . about £4 quarter-acre section-but as the S P6n *i y ' and tus of T!iu marunui improve under the exertions of tho settlers, their rent burdens will grow steadily larger which ' «JrfV n cn v , coUl ' a g" , e Pfospect to look forward to, when there exists no possible b^ atl^°, f - P , Urol } as - e ' . Itis Emitted that banks and kindred institutions would bo wHich U pnni ng to St , art busines3 on holdings which could never be more than leasehold Moreover, tWI tho provision for recurrent renewals seems' plainly to provide for LHrffl aUd res l*>™ble authorinrrf.H™ that they-can put no other interpretation on tho clauses, the settlers feel tut tl, rt" 1 Point,'and it is stated that the Chief Justice has long held that a perpetual lease is not ensured by the reflations. Again the liability of the settlers to taxation, while Native holdings in the township and largo areas all around them are immune, constitutes a not unnatural , grievance. All improvements in Taumarunui, tor instance, i.have to be carried out by the white settlers, while the Natives who own the unoccupied sections in tho township get all the benefit of enhanced values or their property. Tho law is very tender to the Maoris in this matter of taxation laying down, that Maori land leased to Europeans shall bo taxed at half tho ordinary rate, without provision for the gradual i' i"t that , ail Maori )and wh 'ch is unloasod shall be' free from taxation. It is stated that the Maori owners of this particular land aro far from being so impoverished as to need a differentiation of this nature m their favour, and, beyond Taumarunui, ibe opinion .has been often urged that the Maori is unduly favoured in tliis connection. Prospect of Relief. Although the representations of tho Taumaruimi settlers . are dopartmontnllv doDried, an impression prevails that legislation may yet be introduced which will enable t ' l . c '. n .Ito1 t0 ol, tani tho freehold of their lands Pipinki land is also held on a Maori lease and a grievance has been expressed in that connection With regard to "Jannnrumii it is admitted that when tho original regulations note made, it was not foreseen what an important future tho township had before it. Provisions and restrictions tuitable to a "way-back" wilderness are quite unfitted to a fast-developing town. Tho building up of a race of Maori landlords, who do absolutely nothing to benefit the place, and reap a rich and increasing harvest from the efforts of their tenants, is said to bo a • sore grievance in more phess than one just now.