HUGE LOSSES

Evening Post, Volume CXVIII, Issue 20, 24 July 1934, Page 13

HUGE LOSSES

LAND SETTLEMENT

AUSTRALIAN BLUNDERS

(From "The Post's" Representative.) SYDNEY, July 14.

The State Governments of New South Wales and Victoria have cited further Government land settlement schemes as a means of providing employment and increasing the national wealth. New South Wales has in mind the development of another irrigation area, and Ministers have painted a rosy picture of a great valley transformed from barrenness to -productiveness. The scheme would cost anything up to half a million pounds, and the fact that it would provide work for hundreds of men for three years or more- has been emphasised. That is all very well, but tire public will hope that the Government will bear in mind the losses that have been incurred already in land settlement schemes. These have been enormous. The experiences of other States might also be taken into consideration. The Auditor-General of South Australia reported some months ago after a special, investigation that a considerable portion of tho wheat growers in that State could not possibly pay their way even if the regular price of wheat was five ' shillings a bushel. What hope is there of> this price being approached within the next ten years?

Governments in Australia-have been extremely unfortunate as land dealers.. Victoria's losses on land settlement over ..tho last thirty, years haye amounted to many millions! Not only have the unfortunate ' settlers- lapsed into arrears of repayments; in a great number of cases the State has had to grant sustenance. Had Victoria's settlement rejects fulfilled 50 per cent, of the expectations of their promoters, the State would now have had a handsome surplus!. The deficit on soldier arid civilian settlement ' last year was £864,000, and tho loss on water supply undertakings,' £432,000.

The Victorian Attorney-General recently estimated that Victoria's loss on land settlement would " reach £20,000,000. The outstanding capital

liability on soldier and civilian settlement is £32,772,346, and the cost to the taxpayer increases annually. Last year tho Closer Settlement Commission wiped off £1,180,000 from the settlers' liabilities. Soldier'settlement bad debts were written off to the amount of £1,034,852, while depreciation and miscellaneous losses accounted for another

£854,000. Of interest due jon soldier settlement to the amount of £.8,181,000 only £3,830,000 has been paid. It might be safe to say that the position in some of tho other States is even worse. Tho need "seems to be for a comprehensive stocktaking of land settlement schemes before any of the States decide upon extensions. The taxpayer is entitled to the facts, especially as he will be called upon soon to provide- more money for the rehabilitation' of rural industries.