ROYAL COMMISSION OF INQUIRY INTO VESTED MAORI LANDS

Wanganui Chronicle, 17 May 1950, Page 6

ROYAL COMMISSION OF INQUIRY INTO VESTED MAORI LANDS

Sittings Open In Wanganui; 115,209 Acres Involved; Question Of Improvements

The Royal Commission set up to inquire generally into vested Maori lands in the Wanganui district, with particular regard to leases and payment for compensation for improvements, began sittings in the City Council Chambers yesterday which are expected to last two,weeks. Mr. N. M. Izard, who is appearing for the Aotea Maori Land Board, emphasised in his opening that if the valuation of improvements proceeded on the same lines as when leases expired after the first term of 21 years, the Maori owners would have little equity left and would not be in a position to pay for improvements.

The total area of land involved in the commission's present inquiry consists of 115,209 acres and is vested in the board, which looks after it on behalf of the Maori owners and beneficiaries. Some of the land is in the Ohakune and Raetihi districts. Other portions are on the Pipiriki-Rae-tihi Road, and the main belt extends petween Ranana and Koroniti, on the Wanganui River, and almost as far as Rangataua, on the Main Trunk line. Chairman of the Commission is Judge Dalglish, other members being Messrs. R. Ormsby (Te Kuiti) and H. M. Christie (Wellington). ORDER OF REFERENCE. The Commission’s order of reference is as follows: (1) To inquire and report whether there should be any modification of, or alteration in, the existing provisions of law or of the terms of the leases so far as they, concern or relate to: «.) The sort or character of the improvements in respect of which the lessees are entitled to compensation: <b) the method of ascertaining the value of the improvements in respect of which the lessees are entitled to compensation, and (c) the manner in which the liability for compensation for improvements shall be discharged. (2) To inquire and report whether the incidence of the liability for compensation for improvements renders it necessary or desirable that the Maori land boards should be given, in respect of the vested lands, additional powers and authorities whether in relation to leasing or otherwise howsoever, and if it be reported that such additional powers and authorities should be given, then to recommend in detail the nature and extent of such additional powers and authorities. (3) Generally, to inquire into and report upon such other matters arising out of the premises as may come under the notice of the Commission. (4) To make such proposals for the amendment of the law as the Commission may think necessary and desirable. MR. IZARD'S OPENING. Mr. Izard is appearing for the Aotea Maori Land Board district, Wanganui, Messrs. A. D. Brodie, J. B. Jack, and C. E. Taylor (Feilding) are for the lessees, and Sir Alexander Johnstone, K.C. (Auckland), with him Mr. J. S. Rumbold (Wanganui) is appearing for the beneficial owners of the land in the Aotea board's district. Other counsel were present, representing various interests in other Maori land districts. At the conclusion of the day’s sitting they conferred with the commission regarding fixtures in their own centres. Mr. Izard, opening for the Aotea Maori Land Board, submitted general facts and documentary evidence covering a considerable extent of territory over a long period of years. Total area of land vested in the board under the provisions of the 1900 Maori Land Act. he said, was 115,209 acres, of which 7668 acres were in the Wharetoto Block, disconnected from the principal Maori vested lands and of small value. The principal blpck and also the one containing the most valuable land was the Ohotu. It was split into four blocks and the total area was 62,444 acres. Other blocks were: Retaruke, 1164 and 1387 acres; Paetawa, 3226 acres; Raetihi. 4377 acres; Tauakira. 9117 acres; Morikau (two) 14,333 acres; Waharangi, 10,146 acres; Otiranui, 1296 acres; There was also a small area of 50 acres known as the Rakautaua Block, near Whangaehu, said Mr. Izard.

In general, counsel added, the lands had been leased by the board for 42 years, made up of two periods of 21

years each. Rentals for the first term were fixed by tender, and for the second term at five per cent, of a valuation carried out in terms of the lease. In practically all cases the leases contained provision for compensation for improvements. The first lease was granted in 1903 and the second term expired in 1945. All the leases would expire some time prior to November, 1957. ATTITUDE OF MAORIS. It was admitted by the board, and probably by the Maori owners also, that the lessees were entitled to fair and reasonable compensation for improvements made on the properties, said Mr. Izard. When the land was taken up it was generally in an unimproved state and consisted mainly of virgin bush. Minutes of the early Maori Council, which controlled the land, and later the board, clearly indicated the attitude of the Maoris toward their land. It was the intention of the Maoris that these lands should be cleared and used, and that at the end of 42 years they be returned to the Maoris. The board and the Maoris felt, however, that if the valuation of improvements proceeded on the same lines as when the leases expired after the first terms of 21 years, the owners would have little equity left and w-ould not be in a position to pay for improvements. From rentals received the board had spent money on surveys and roading. It may be contended, Mr. Izard added, that the work done was insufficient, but it was to the extent of funds available. Total rentals for the firs: term of 21 years amounted to £8667 a year, and the value of improvements, as assessed by valuation at the end of the term, was £460,350. The owners' value was £90,897, and the total capital value £551,256. The owners’ interest represented approximately onesixth of the capital value. Total rental assessed for the second term was £4874, about 55 per cent, of the rental for the first term, when the land was in an unimproved condition. As a result of application of the National Expenditure and Adjustment Act and other statutory authorities, second term rentals were further reduced by £693, bringing the net rent for the greater part of the second term to £4OOl. This meant that only part of the value of improvements would be paid for, leaving out interest, cost of collecting rents, roads, and surveys. Total rental for the first term amounted to £220,000, and for the second, term it would be approximately £82,000. It would be manifestly impossible, said Mr. Izard, to pay full compensation for improvements out of accumulated rents. So far, £12,000 had been spent on roading, surveys, and other charges associated with opening up these blocks. The board felt that if the provisions for arbitration were carried out as done at the expiry of the first term, there would be very little equity left for the Maoris after provision was made for payment of compensation. How rentals for properties in the various blocks had been reduced com siderably was described by Leslie John Brooker, Registrar of the Aotea Maori Land Court and also a member of the board. Rentals for the Ohotu Blocks, he said in evidence, had previously averaged Is 4d an acre, but were now lid. In the Morikau No. 2 block rentals had dropped from Is 8d an acre to 3d, and, in the Waharangi block from Is 9d to 6d. Other reductions were Paetawa Is to 4d, Retaruke lOd to 5d and Is 2d to 9d, and Raetihi 6s to Is 2d. Various reductions and remissions in rents and royalties brought about by the National Expenditure and Adjustment Act, the Court of Review, and other factors, had totalled £2O-873 for the various blocks, said witness. The sittings were adjourned till 10.15 a.m. today.