WHAKATANE DRAINAGE SCHEME

Otago Daily Times, Issue 14898, 29 July 1910, Page 2

WHAKATANE DRAINAGE SCHEME

CRITICISM IN THE HOUSE. ALLEGATIONS OF SPECULATION. CFboji Qua Own Correspondent.) WELLINGTON, Jttty 28. The Government's proposals in respect to the drainage of tho Rangitaika Swamp (Bay of Plenty) were subjected to eohie criticism by Mr T. E. Taylor this afternoon when the Whakatane County Drainage Bill was received by Governor's message and read a first time. Tli© Prime Minister, in answer to a question, explained that the bill .was for the purpose of acquiring certain lands with a view to their drainage on a comprehensive 6cale. Tho local authorities which had been authorised'to carry on tho drainage had found themselves in financial difficulties; and were unaMo to repay the loan, Application had been made to the Government by Mr Macdonakl, member for the district, to see if the Government could repay the loan, or if an advance could be.mad© from the State Guaranteed Advances Department. The position was complicated, and if the Government had paid tho -loaji the settlers would not have been enable to carry out what was required. The' Under-secrctary for Lands had visited the district, and it had been agreed that the Government should carry on tlio work of drainage. The Government wanted! to help the Drainage Board and have _ a considerable amount of land for further settlement, out of which it expected to reimburse itself, for the whole of the work.

Mr T. E. Taylor said that there was a tremendous lot of speculation in Whakataive swamp lands, and he hoped that the Government would be able to give the House its positive assurance later that the money of the colony was not going to be used to create land values for groups of speculators. He was very suspicious about the bona fides of the bill. It raised the-, whole issue of the Betterment Act that lirnl been talked about {or the last quarter of a century, but which did not appear to get very much nearer. The Wa-iau bridge, which was being constructed by the Government in North Canterbury, would, create huge fortunes for three or four large landowners in the Amuri 'county. Bclore a pound was spent on that bridge the Government should have resumed every acre of land within cooee of the improvement. The land of neighbouring owners' would be increased 50 times above the value of the bridge.

The Hon. H. M'Kcnzio: It is a railway bridge.

Sir Taylor: That mates it all the worse. The line slioukl not- have been allowed to go a. mile furthel- north until those are?s were resumed by the Crown. He would watch :the progress of the bill very closely, He felt pretty sure that a good deal of daylight should be let into it. It was all right if the Government was going to get • its cash back with interest.

Mr Macdonald (Bay of Plenty),said the swamp was about 90,000 acres in area. There were' many Crown tenants on the land who had spent much money during the past •10 years endeavouring to drain the land. They had got into a hopeless position, and those who had loaned the money put in a receiver,, and a- special rata of Is in the pound had been struck to liquidate the loan. During the recess .lie had brought the position under 'the notice of the Minister, : and the Govern-, mont had agreed to come to the relief of the ssttkrs. Ho understood that the settlers were prepared to pay whatever interest might be required for the work, and by the drainage a large area of fertile ;land would.be opened for settlement. He protested against the insinuations of Mr Taylor.

Mr. Herries (Tauranga) denied thai there was any more speculation in this ■than in any other land. --He agreed ..that this was a work 01" 'colonial importance, and one that should, 011 account-of the; peculiar difficulties connected with it,, be. ;undertaken by State. ..

Mr. Taylor expressed satisfaction with the reply given to his queries.- , Notwithstanding tin's, he knew'that large areas of these lands had been offered to people in the south during the last 12 months; and a good; maiiy sales, had been made.

Sir Joseph Wnril: Kot of this land which is being drained. Mr Taylor said the land he referred to must he part of the area involved in >.the bill. One question which lwd entered into the transactions lie had referred to was whether there; was sufficient fall to allow the land to be drained. Mr Taylor pointed out that the expenditure of £26,000,000 on public works during recent years had raised the. unimproved value of land in New Zealand by £80,000.000—0r more than trebled it. The Waiau railway- bridge, to which he had referred, was a piece of 'pure boodle. Two millions were to be added to the public/ debt. this year, and this would probatily increase land values by £5.000.000 or £6,000.000, while the interest bill of £80.000 per annum would have to be borne by the taxpayers.. _ Mr Taylor contended that the expenditure of public • money without a betterment tax was aggravating one 'of tho most real economic. troubles in this country. He hoped that the Whakatane swamp business was a straight,', clean piece of busi-

ness. Tho drainage of the.swamp would increase the land values, and part of this increase shonld.be retained by the St-ato for the general benefit. ,'

Sir Massey said that what caused the increases in tho value of New Zealand lands was the high price of our products. If there, came a .slump in wool and butter it would prove a heavy blow to the Dominion. He would remind Mr Taylor also that the British Government had not attempted to interfere with agricultural land in connection with its taxation proposals. He did not think that speculators would be the gainers by the proposed works.

The Hon. E. M'Kenzie said that there was little land suitable for closer settlement in the portion of North Canterbury to which Mr Taylor had alluded.- In connection with the bill, it was proposed to-load the land affected wtyh the cost of interest and sinking fund. -The land m question would make some of the finest dairying land in -the Dominion.

Mr Forbes (Hurunui) admitted that the land in North' Canterbury included a lot ojf large blocks. Some scheme would have to be devised whereby it would carry a much larger population. Mr T. is. Taylor declared that Mr M'Kenzie -must be unacquainted with the land ■ north of Cheviot, otherwise he could not have deprecated it in the way in wliich he had done. The Government should supply a' list showing the number of owners affected by the scheme in the bill, and the extent of their holdings, also the amount of Crown land within the area in. question.

The Hon. R. M'Kenzie: They are all small settlers. -

Sir Joseph Ward said he would be glad to give the information desired by Mr Taylor when moving the second reading of the bill. The measure was not going to benefit speculators; it was entirely due to the fact that the settlers who had borrowed money for this work were unable to carry on, and were on the verge of rain. The bill proposed that' the State should take over their assets and liabilities, i It provided for a loan over the properties oti which the settlers would, pay principal arid interest. The expenditure involved, was £50,000. There was much similarity, between' this work and the drainage of tho Hauraki .Plains, except that in the latter case the land was'owned by the Crown, and in t-his case the worit. was undertaken to save settlers who were'threatened with ruin. *