SWAMP DRAINAGE

Poverty Bay Herald, Volume LII, Issue 17133, 8 September 1926, Page 5

SWAMP DRAINAGE

HEAVY CAPITAL LOSSES

SETTLERS' HOPELESS BURDEN

(Parliamentary Reporter.)

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"Tin's is another example <-i th< difficult v in making lands lit for setfipinent," remarked the Minfetpr of Lands, the Hon. A. I). MeLcod, in moving the second reading of t lie Swamp Mrrfinage Amendment Bill in the House yesterday. He believed in faring facis. and it was obvious that the .continuous loading of these development schemes meant atTad '.1111111.11 ion of interest which would create ak'irm -is to the amount which would have to ho written off. 'the drainage sothemes dealt with in the Bill were planned before the war. when the estimates were .low. The work was carried out under condition* of high prices, which were probably 60 per cent in excess of normal.

The sooner the capital cost was written down to a point which the settlers could reasonably pay the better for the country. It was most disheartening if settler's had to struggle, along with a load of debt which tliey were uncertain whether they would be called on to pay. The total expenditure on Kaitaia swamp was .£234.000. including accumulated mtt rest £58,000. There were 61.000 acres of swamp, of which 7000 to 10,000 acres could not be A further £50.000 would be required to complete the scheme. It was intended to write olf £109.000. nearly £ for £. HEAVY STATE SUBSIDY. He had noticed that m the last 30 years the State had subsidised land drainage to the extent of over £IOO.OOO for land in which the Crown had no interest, though .such work was to the general benefit of the Dominion. The Bill also dealt, with the Waihi swamp, in the Bay of Plenty, which included a considerable portion <.i' Crown land. He was satisfied that the settlers' could not pay interest on the full iwipi- > til cost, which, including the capitalised! interest, amounted to £93,000. It would require an expenditure of .£15,000 to complete the scheme, making the total £103,800. It was projwsed to write down £33,800, making the total £75,000. Care had been taken not to write down these, lands so that settler? would start, selling them. Colonel A. Bell, while appreciative of the Government's action, assured the Minister that Kaitaia settlers would still have a heavy burden, and he hoped the 'Capita! cost would be reduced to £IOO.OOO.