NATIVE TRUSTEE

Evening Post, Volume CXVIII, Issue 106, 1 November 1934, Page 17

NATIVE TRUSTEE

COMPLAINTS WELL

LACK OF READY MONEY'

The. view that .complaints made, against the.Native*.Trustee were .well; founded, i and. that ; a '-review^ of, Jiis policy was-necessary was expressed- by the Commission.. . .: ■

Tho report stated that a strong attack oil the administration of the Native Trustee . was. made by two representatives of . beneficiaries. They both stressed tho fact that the;result of the operations of the Native.Trustee .was such .that, notwithstanding the State guarantee of t:he common fund, his Native beneficiaries had been serir ously inconvenienced because ho did not have at his disposal when required during the years 1932 and 1933 sufiicient ready money. Complaints were also made by officers of various Maori land boards that they had deposited large funds with- the Native Trustee, and that the beneficiaries of the Maori laud boards had also- been: seriously inconvenienced for the same'reason. "We have come to the conclusion that the complaints were well founded," stated the Commission, "that there is. at present a dislike of the' Native Trustee among, many Natives, and that a review of his policy is necessary. ; TRUSTEE AND FABMING..;. "The question. now;, ;is-' whether. ttie existing control of fanning expenditure by tho Native/Land Settlement'fßoard is sufficient to: justify tho continuance of tho poworsy of' the Native' Trustee to conduct large farming .operations with his trust.-"funds. Assumingv.the Native Land ■ Settlement Boards to' be an •:■ excellent * board ;< of <■ farm manage^ rient^'it cannot: Coi?troltlie prices '? at. primary "products'..:.-.ltiia.:";a.' common-'' place that th c: prosperity :bf,'the (ionritry is bound up with those prices/ but there is a difference between conducting a- trust business'which: is .directly dependent;'on .the vicissitudes .of those prices and: one which is only indirectly dependent on them. In the former class is a trust business which conducts farming operations on its own account;, In the latter class is an investment trust business which lends on/ mortgage on an estimated safe margin of security. "We think that when there is any undue fall: in prices it should only affect the- investment's of theY NativeTrustee indirectly. • He, should : not be placed in tho position, bn the one hand, of cither attempting to save his farming properties by expending his funds on them and of letting his ordinary beneficiaries go short, if, as.actually occurred, the State does not make up the or. on the other hand, of paying his ordinary beneficiaries and allowing his favming properties: to deteriorate. It might be,-of course, that the farming operations of v the Native Trustee contributed so largely to the welfare of a largo' body of Natives that these risks should.bo run,

j but the facts are to the 'c.o'ntrary. On theso large sheep stations,:;:very-few Natives are employed," except "for seasonable occupations such'"asfishearing and crutching.::■■'•; The': Natiyb vTrustee may, and does, make "advaiieea for sustenaiieo to tho Native owners against I their, interests in the land, but tho amounts so paid are an accumulating debit which must be met before tha property can be resumed by them; but, quito apart from this and in any event, tho prospect that the Native "owners will bo able to resume possession, and farm as settlers on their own account is very remote. If they were so able, only a few Natives would be benefited. SAFE INVESTMENTS. "In our opinion, there is need for a tiustoe who will act as a safe investment trustee for'the: Natives. We think that the Native-Trustee should ba limited to the> funeions of such a trustee and should not be permitted to act as a farmer, except in so far as lie' is a mortgagee in possession, or i 3 otherwise^ protecting a security upon, which'he has advanced'moneys subject to the safeguards proper to a, trustee board of investment. We think that tho schemes for the development of Native lands and for granting farming assistance to Natives should be carried on by the State and by the "Maori land boards (whose funds are not-guar-anteed by tho State) and should not be'undertaken by tho Native Tr-ustee; arid wo make, recommendation ingly"As an investment trustee the Native Trustee should hold substantial liquid assets, but, if he ,is to continue farming operations with trust funds as part of his -business, wo .recommend that a. large proportion of his funds, exceeding perhaps one-third, should be invested and kept invested in liquid securities -easily realisable. Again, when the Native Trustee requires to buy stock for his farms, arrangements should.be,made to, ensure that:he: does not buy in competition with buyeirs for tile State development schemes or tha Maori land boards. Wehave had evidence indicating that this precautioa is necessary. Furthermore, if the Native _ Trustee- is to be used for tha purpose' of assisting Native farming, we think that for the same reasons as we have advanced in connection with the Maori\land boards, assistance given to approved units is a'much'.'more useful method of settling. Natives on the land than the development arid farming of comparatively large areas. ' "We recognise that these' Targe, waste areas require control, but, {o repeat our view, we, do not think , that' that control should be exercised by a trustee ;,whose common1 fund is' guaranteed Jtfy the State, and whose funds are of'the kind held by the Native Trustee, v \ ' ,:«"We'havo mado-'a serious, criticism of the administration of the Native Trustee, and we are glad to' say, in* conclusion, that the accounts of the Native •Trustee aro in order and that no complaint has been made to us of the accounting methods of the office. He was shown himself to be capable of acting as an investment trustee. We think, however, that, with tho arnal- . gamation of the positions of Native Trustee and TJnder-Secretary of the Native Department, better service will bo given to the beneficiaries of the Native Trustee by decentralising, where . possible, the accounts of beneficiaries. We think, too, that the Natives will bo happier'in their association -with him. if they can obtain information by a personal visit to his representative at a district' office rather than by correspondence with head office."