MACKENZIE RUNS.

Timaru Herald, Volume XIIC, Issue 13673, 15 August 1908, Page 7

MACKENZIE RUNS.

COMPENSATION- FOR LMPROVEMENi'S. AMENDMENT STILL DESIRED.. The Xaekermie runbokler whose remarks upon the "conditions of pas oral leases, witli tlw _ Minister's reply thereto, have .b'oen. printed in the " Herald" during tlw week, was in .town again yesterday and made some further remarks on the subject. He had comptaimd (1) that kases are put up to auction a year before expiry instead of the tenant having the right of renewal a f > revaluation : (2) that the maxim am compensation for a displaced tenant's improvements was three times the average yearly rental. Mr McNab in au interview published on Wednesday pointed out thati tinder the Amending Act of last year improvements hail now to be valued, ami the incoming tenant had to pay the fall value to himself of those improvements. Mr McNab pointed out that this arrangrnient meant a substantial gift to the tenants as their rents had been based or the assumption that improvements would only be allowwed for at the rate of three years' rental, and tlio tenants were now given full value for thousands: of pounds nf improvements wliich u/lder tho original bargain between the, fJovernment and the tenants would have fallen into the hands of tln> Government; In regard to the withholding of the right of renewal, the Minister said this was necessary 50 that the Government would havei no trouble if it, became desirable iu the future to subdivide its pastoral lands. Yesterday the runholder said he had Tcad Mr MeNab's remarks, which had both enlightened and to a great extent satisfied him. Ho had uoti been aware of the change iu the law about compensation for improvements, and tliere were others like himself—even among members of Parliament. ■ He had had some correspondence with various legislators quite recently, and none of them, from their letters to hhn on the subject, seemed to know about the ■•hange. None of tlierrt. either, Ikm! been able, to tell him why the Government refused the right, of renewal, and he thought Mackenzie runholders'would all'be glad to s»:e the Minister's explanation which was the lirst they had ever had. Personally lia agreed with Mr McNab's view, but he thought the Land Board might be given power to-make an inspection, and when satisfi.<d that there was not likely to.be any iiecwcity- ordesh ability for subdivision for years to come, they might offer the tenant a renewal for another term. As he had explained in his first remarks, runholders whose (leases had now less llian three years to run were in a quandary ■whether to~Yestock or not. It would not he worth while to do so for tlw remaining three years, but if the. Land Board were; to make an inspection as tlu.y d ; d • after the 1895 snowstorm, and were able .to tell the tenants that they could have a renewal, since their runs would not be required for subdivision, the work of re stocking, could start right- away. He thought the Canterbury Land Board would be chary about entertaining subdivision proposals in the Mackenz ; « for a lon<r time, as they had had one experience of the almost disastrous results of 1 similar policy when much of the low count rr had been cut off several runs. The atva of low country had been too small to < liable a man to make a living and the loss of it had practically ruined the big runs, "while in addit : on the cost of mating roads to the. latter had more than swamped the'levenue from, the holdings in the frout. As a result" it had been - ncce?sarv to group quite a number of the small runs aud let them to" a single tenant. Mr Guthrie, the great advocate of subdivision, was hiniself the tenant of-a number of grouped inns. Another -point was that the valuation for improvements ought to be made before the leases-wert; put up to auction, instead of nine months after, just as the leases are on the point of expiry. It would make a differtnee to the bidding- for tiie le;ises if people knew exactly what was the amount to be paid for the improvements, instead of having to buy in the dark. In the case of renewable leases, tue valuation of improvements- was rrade !>-.•- fore and noc, after the sale, if a .-raie was ueeessarv.

THK LAW ABOUT VALUATION. TUo following extracts from last rear"* Act deals with the question of compensation for improvement "in the case Vf pastoral and renewable leases respectively:— ' Pastoral Leases. A pastoral lease .has to be put up lo auction at k\isl uvelve niouUia Ixiuie its eiptry. In the event of the -then lessee or licensee not hav-'ng become the purchaser .the Board shall, at, least, tnree months before ths expiry of anv such l&i&e or license, proceed to have valued by arbitration all improvements consisting of ■ necessary buildings, plantations, fences, (other- than rabbit-proof fences}, and. ditches , for draining made on thii lands the lease or license of which has teen told at auction 1 as -last aforesaid. Such valuation shall ba based on 'he worth of the.said •improvements to the incoming '-tenant, - or,' in the 'case of a. subdivision.of the run,.to the incoming

tenants of the divided portions thereof. Renewable Leases. Renewable- lease.-* for 33 years are granted to tenants on estates repurchased for close settlement and for 66 years to tenants on certain classes of Crown Lands. -Not earlier than three years and not k'.-js than two years before the expiry of a renewable lease, the Board have to value the improvements and givo notice of the valuation to the tenant, who, at least a year before the expiry, must, say wliethei or not he desires to accept a renewal on the terms otl'eied, whether he acoepls the valuation for his improvemenst as fair, or whether he wants the matter to go to arbitration. If he declines or ..omits to take xip the lease again, the value of his improvements as determined by the Board's valuation, or by arb.tration if the tenant has demanded arbitration, becomes ;i debt due. to the tenant, by the Crown.

Jth'MAKKS BT THE HON. J. ANSTEY. When the amending legislation ol last year was before ihe legislative Council, iiiellou. J. Austey made several referenced to tlij .Mackenzie runs. Wo extract the following passages Jiom his speeches in "Hansard'' :-£- " Under most of. the tenures in the Bill there is a very large measure of tenant right conceded, 'lo the fanning community that right has lietu conceded, for many .vwir-o, though not fully iu all cases. "Under the small grazing tenures that right has always been conceded to a large extent, but under the great pastoral-run tenures there, has hitherto been vety little of anything that could be described as a secure tenure. Although in this Bill there is a. vast improvement on the previous position, 1 am sorry to say that the Bill does not go to the lull length of bringing-this tenure into conformity with the other tenures under the Bill. Perhaps honourablemembers are not - aware, of the position with regard to these largo pastoral runs. Until recent years it was the-custom to lease these runs lor terms of seven fourteen, or twenty-one years. The leases were ottered by auction; they'were subject to icoumption without notice at any time, and at tue expiry of tiie lease tUoy •were submitted to auction again without a, penny c'* compensation whatever. It is no wonder that under such conditions tho development of these runs did not make much progress. However, at a subsequent date a slight improvement was made 111 these conditions. At the present time thtce grazmg-runs are allowed compensation at the expiry of the lease, to- an amount not exceeding three times that of the annual rental. JLet honourable .members couoider for a moment what that means on a. comparatively large run, where the rent is only a email sum—£loo or i/ZOO. What is £SOO or so by way of compensation on one of these runs? It is .'.simple'a trifle compared with the amounts 'it coats to make improvements on-the run if they are to be> properly developed. How can a man conduct a sheep-run without a house, a shearingshed, accommodation for workers, fencing, and other necessaries ? 'What, lie ought to no —and what the Government ought to encourage prove, the carrying-capacity of his - run. But how can. a tenant with a.sndi a trumpery'valuation as is given to. these LsSecs properly develop his run? 1 am pl.-ased lo see that the Government have uiade one sttp in improving this condition of things, because in the Bill btfore us the compensation to'tbe outgoing tenant is unlimited, so far as permanent improvements are concerned, tuough Mere- jj a limit to the amount of compensation for grassing —wliich 1 consider is not wise—lo.oOOo acres. That there is a great necessity to allow valuation for improve-: merits' will, I think, be recognised:by the Couucii. Mr Humphries, in giving evidence before the Land Commission caid this woneerning the runs in Canterbury:

"In 1891 thero were 147 runs, <curii-. l.rising 3.140,000 acres, yielding a revenue ■>l £41.491, nr 5 l-sdr per acre; ia 1905 there were 151 runs, with an aiva in' creased to 3,528,892 aqres." liut, nothwithrstanding ibis substantial increase in tlic area, the rent had- dccmiad to £34,075, or'efiual.. to 22-5 d peracre. In oth.r words, although the area, lad increased by nearly four hundied. thousand acr-.s, the rent had decreased by over £7OOO, and the rate per acre had decreased by 25 per cent. If honourable members consider tor ;i moment that durn,g the»e fourteen years there had been a large increase in the value oL sheep and their products, tWy will see that there, must'lia something wrong when wo find such a large decrease in the rent and.the productive capacity of these runs. I will givo one instance to show how-.the depreciation is taking place; and to do that I will refer to the evidence of Mr .Mcr. Whirtcr. who was at ono tinio manager of the Morvcn Hills Station, in Central Otago. In consists of 320,000 acres.. .The original rent was £4500 per annum,-but during Mr McWhirter's time the rent hadbeen reduced to-£2750. There is a direct Tow to the State «of £1750 per annum;. And I ask hoiumrable gentlemen, seeing iucb a'state if affairs as that, is'it not necessary to give - some attention lo the cause that has led to this great loss to the revenue-of-the'State?- Mr McWhirter.

also E aid that the maximum number of sheep he ever knew to be shorn at Morven Hills Station was 110,000; but the year in which ho gave his evidence—l9os—the number had .decreased to 42,000- ' The Hon. Dr EINDLAY —Ab -what time did lie fix?

The Hon. Mr ANSTEY.—I cannot say the time ho fixed. At any rate, ab one time the station was able to carry 110,000 sheep, but in 1905 the 'number, had decreased to 42,000. As ■to the reason of the decrease, Mr MoWhirter told 11b that, the causes were ll) rabbits, (2) lostcs by snow, (3) overstocking, and (4)- indiscriminate burning and lack of regrassing. Mr McWhilter was asked whether ho could give any suggestion as to Low to avoid these decreases ttud to bring the land back to its original carrying-capacity. It had been suggested that, the Government ■i-hould step in and: do the regressing, seeing that the tenants, if they went to any great expense , had 'no security and could srefc very little returned to them if they did anything of the sort- This suggestion of regressing was accepted by quit© a number of the tenants of the Government in o. most indifferent" manner. Home, thought it would be almost Useless even if they wont to the expense- of grassing, and the Government found the seed, and they thought they would get no advantage because they would have to submit to competition at auction at.the end of a Very short lease. When McWbirter was asked if ho counld suggest any other reason, he said the only way was to go in for more subdivision. The run required more subdivision, as it was ' too large for one person to properly manage. The run, in my opinion, had been held by someone without sufficient money or brains to properly manage it, and that was the reason it had been overrun with rabbits. From what I have seen in other districts where land lias been held in reasonable areas, the rabbit nuisance has been steadily.' . disappearing. In addition to proper subdivision, he says, '■' Give a longer lease and full compensation to the tenants. 'lf you concede tlup points the Jand'will .almceb immediately double its J carrying s capacity." There is "the evidence from a gentleman who was the manager of a, very large run, and it will bear out,my. argument that it is absolutely necessary to give, these pastoral tenants a. more secure tenure ttian they have' now. . The recommendation of the Land Commission went one step- further than the" Government hay® gone—they suggested that these runs should be let for terms- of . twenty-one yeare, that the tenant" should-got'-full-value"-for any of his 'improvements at any time he was called upon to go out; and that "he should have' the -right of renewal at an arbitration • rent. Now that the right of renewal has been.- conceded in- the case of aluifcst all the other tenures, 1 am - iit' a. loss to ■ know why it has not also been conceded in the ease of-thcio -grazing-runs'■ as well. There seems to be no reason-why it; should not bj. You could insert a provision—and it might' be attached to : every loim of tenme—giving the Government the right of resuuiuig the whole or : any portion of the land if it nerv required for closer subdivision. .. 1 fecl'quite certain if that were done, we should see an enormous increase in the. llocksof our province. For luany years .the. great difficulty., we have bad in respect to the low-country has been the insuftici-eut supply- of store sheep for iattening.ipurpcsess" but I. feel certain tuat if there was a. uioro secure-tenure, and encouragement given to. improve --tlic-k: runs, the flocks igreat breeiuuggrounds would ba largely increased; ana ilie increase in the bi«cUing-iloeks_ would be followed by an .equally iargo increase m our exports of frozen mutton and other, products." In this connection, i notieem clause 77 of -this.Bill the Government takes power where any. property is acquired under the' Laud tor iSettlemciini Act, if a' portion of the land consist* of pastoral property, to \vC t-ue .'.'same, on renewable lease ; and if it is right to let that land under the renewable lease, which is a perpetual leaso -.subject to .periodical .iv-valuiuavil.-I-.t*e.-iwJeaaonl-why tiieJssanie' system-,should not he also applied to land at, pieseiit -in Shdy.ljands 01 "the i; Crownwhic.li lias not been- purchased.'.' ■...'"'■

V\ lien the Hill-. Was in. Committee in the Council, Mr Aiistey.moved.that "the; holder. of any pasturage, lease or license, shull, in .cases where it is intended to again lea ye the run as a: -whole, be entitled'to a renewal, of his;lease or-license at the valuation rental of. such run, and, in cases where the run is subdivided into smaller/runs,'.to' a l -lease-of: .any one of tb'e subdivisions at. the . valuation rental of such subdivisions itt.th'o Valuation-rental of such subdivision." Mr Aiistey was beat by one'vote-r-9-to-8.. .-.-' • •".-..' On the motion for the third reading of the Bill, Mr Anstey made afinal .'appeal.Preferring to the-above 'proposal, he said: "Tlio amendment, lam sorryto say, was beaten, although the majority", was only one vote,- and-1 hope, therefore, to sea it ultimately carried.: I. trust the in the courtc ofa- year' or two, may see his way to give-the same'rights of-renewal to pastoral tenants as is-givcn'to.tenants of other classes/of land. . I liiiowiof no reason why • this ehould- not'"be done. During the next\few years verjHargc areas of pastoral country will fall'in, and then it. will become, necessary to' re-lease thesa lands, and no doubt tho Minister '.will take steps to do this and sea that the land is cue up in Reasonably sized areas. In doing. this,' .'something.: should*, be done for Loose . pastoral ■ who . have proved themselves good" lessees,'. because : there will be ; very. Jieen competition'- of these lands, and if. submitted'to-auction tho 1 occupants will, bo, subjected thereby-to unfair.' competition. Honourable ' members wiil' recollect" that'l-".quoted soine.ngur.es the other" day showing how unfairly such competition >cts in,such cases. ;.Tho price bid is veiy often much beyond the value of tlie land, 'arid : tlio' consequence is that in the course of a few years the tenants have to fall back on the Government and ask", for a reduction- of their rents. 'As. the Government know, there has been very considerable competition, and this will be-much greater now- owing to the fact that the Government now gives them valuation for their improvements, - which , means that the encouragement thus given will have created many improvements lhat would not otherwise have been made, and so the tenant'who has been the'greatest improver, will be subjected to the greatest competition from outsiders. In'-such-cases I_think the Minister should have'provided for granting, them at least a portion of their l'li'is without this'undue competition. 1 believe, i.f.pbsible, the Government may ■vet f.ee their way/before many of these leases fall jn-to., grant this.condition. I am sure ib;fxviil "be"; an advantage -to the Government!'; js''; >™ll' as to the tenant." . ia/- " reporter yesterdfiv,' Mr- Anstey" said that-if it was ne-civwiiy'--.lo: Preserve-.power! to .resume- for closer* setUeinejiipthe pastoral riitii&y, it was much more necessary-to reserve-this power in the'case-of, the 'small grazing- runs, as these are mere favourably • situated- than the larger runs. Yet. they aio let for 999 veais. or- on renewable- leases. .. The small 'grazing runs on . Cheviot, let- on 21 [years': renewable lead's, blight To * be- .subdivided now. but the terms <jf -the lease* precluded that being done. The Farmers' Union had-been working for. the destructipn of the perpetual lease tenure. - If they had succeeded it would have been, the first step towards the des-'lruction of the; freehold tenure-. ' They would have done more good if they had" tried ■> to give-the run holders N a . scture . tenure (not..; as .against thi stat,e, for there should he a right ; 'of resumption or of subdivision) but-against the competition of others. The -State"should fr>' siitisficd 'to get v a rent at -their, own valuation. ;•" -. . •-' / ' • Regarding, the -division . oiv-his ■•■ amendment, Mr Anstey-eaid he .believed-.it could have been carried if there had been-a moderate ■ amount-.of'agitation-for it! Sir

■\V. J. Steward would have worked for-it in the Lower House. But the runholders had few friends, and- the only Councillor to vote- with him was Mr Lougknan, who accompanied 'the Land Commission round the colony' and knew something abotlt the conditions of runholding. The funs'in many • cases, said Mr Au r ttey, had been badly divided, so ".that the high country was separated from the low and ;l tenant on high hill runs had no soft winter country. The present condition of the Mackenzie Country suggested that the whole of it should be looked upon as summer country, and worked with country below the winter snowline. It might seem wasteful to have the country bare of stock in fine winters when there was no snow except on the mountain tops, but the spell would be beneficial. The deterioration of the hill runs must be largely.due to the sheep eating out the grasses in winter when there was no growth", and in spring,, when selfsown seeds were germinating. Mere subdiyi-. .sioli of tlio runs would Hot check deterioration of. the natural, pasture- from that cause. , . .■'.'... ." . *■■*■■■■■*■■■■■■