DEVELOPMENT OF LAND.

New Zealand Herald, Volume LXIII, Issue 19453, 8 October 1926, Page 12

DEVELOPMENT OF LAND.

THE MINISTER'S ATTITUDE. COST AND PRODUCTION. [BT TET.EGH.IPH. —OWN CORRESPONDENT. ] WELLINGTON, Thursday. The Minister of Lands, Hon. A. D. McLeod, has made clear to Parliament his opinion that the wide benefit to the Dominion through increased land settlement warrants the State in even going the length of subsidising such activities where they bring fresh areas into productivity, but in such a policy his Department is handicapped, for if it buys land the borrowed money involves definite charges for interest and sinking fund. Where the State makes a good purchase it turns the areas over to settlers without attempting to make a profit; it reclaims swamp areas at such high cost that Parliament has had to approve of hoavy writings down of capital, otherwise settlers could not carry on.

This, on strict balance-sheet lines, if only the Lands Department's figures are taken into account, looks like a dead loss, but Mr. McLeod, when this aspect was mentioned, said his officers had reported that the value of dairy products from Rangataiki swamp lands last year was £189,000, and that, other, products, such as cattle, sheep, and maize, were also raised. Last year's production from Hauraki Plains, a reclaimed swamp area, was worth £575,000, so the Minister said that, viewed from a broader angle than, the Lands Department balance-sheet, tho writing down of capital, when accompanied by good production, was justified when it put fresh heart into settlers. "There is good authority for saying that land protected by dykes in Holland has cost for improvements, over a period of 150 years, £4OO per acre, but it is saleable to-day at only £2OO per acre," remarked the Minister, "and Holland is one of the wealthiest countries in the world because 'of its high production. That is the view I prefer to tako of tho situation. Development must not be too hasty. Holland could not spend £4OO an aero in five years; this would be ruinous, but development must be progressive. There is a great amount of cleaning-up to be dono in connection with soldier settlement and deteriorated lands, and I feel that until much of this has been dono I would not be justified in bringing down a comprehensive policy for development of unoccupied land, which I know cannot be done on an interest paying basis with money costing what it docs to-day."