XXV

C.—4

of the most extensive area of pastoral country in the colony, the farm of Mr. John Wilson, of about 1,000 acres, situated near Ophir, is an object-lesson as to what can be acomplished by irrigation. In his evidence he says, " I may state that 600 acres, partially irrigated, supported 1,200 crossbred ewes since lambing, and there was 100 per cent, of lambs, and it supported them well. They are all fat. The lambs were prime freezers; there were no turnips in the summer, but I fed with turnips in (he winter. Irrigation would make central Otago the most fertile district in the colony." This great pastoral country can only be improved by the willing co-opera-tion of tenants with capital, and to secure that there must be an absolute security of tenure on lease for a term of at least twenty-one years, with valuation for improvements at the end of the term, and right of renewal at an arbitrated rent. There are a number of ways suggested in evidence that would improve the pastures, such as requiring the tenant to subdivide and rest a portion of the country during, say, from Ist September to end of February, thus allowing the native grasses to ripen and shed seed. The country might be stocked for some months afterwards, and again shut up for another period. Another way would be to restrict the number of sheep carried during the first five years of the lease, and provide the tenant with a certain quantity of good seed, which he would find the labour to sow. It would be advisable at once to establish experimental plots to test different grasses for the respective districts. The suitability of the native grasses should, however, not be overlooked in carrying out any experiments. The present law restricting the area and number of sheep to be held is considered unsuitable for much of the higher country —it is impossible to work this country except in large blocks—Part VI. of " The Land Act, 1892," should be amended accordingly. In runs within proclaimed goldfields, it would be necessary to have power "to reserve to the tenant the area that he was allowed to cultivate during'the currency of his lease. It would also be desirable to have power to make exchanges of land for suitable areas for cultivation and sites for homesteads. SMALL GRAZING-RUNS. This is an important class of agricultural—pastoral country which, in the Middle Island, has been promoted to some extent to the detriment of the higher country held under pastoral tenure. As it may become desirable to resume some of the country held under this tenure, it is unfortunate that " The Land Act, 1892," provides no power of resumption at the end of twenty-one-years lease; there is only the power of revaluation—the holder has the right of perpetual renewal. It will be advisable to amend the existing law so as to have the power of resumption at the end of each twenty-one years, as in the Land Act of 1885. Of course, there must be no interference with the contracts entered into under the existing law, but the future lands taken up on this tenure should be subject to resumption if required for closer settlement. VALUATIONS. Dissatisfaction has been expressed in regard to the method of apportionment of values laid down in " The Government Valuation of Land Act, 1896," and amendments of 1900 and 1903, under the headings " Capital Value, " Unimproved Value." " Improvements," and " Value of Improvements." Examination of the statutory definitions of these terms, together with the information obtained from inquiry into their practical application to valuation-work, indicates that faults exist. Evidence very clearly exemplifies the extreme difficulty of distinguishing with any degree of accuracy between " unimproved value " and " value of improvements," and it would seem that, despite every precaution by the Department to equitably divide these, the tendency is for the unimproved value to unavoidably increase at the expense of the tenant's improvements. It would appear that ground for graver dissatisfaction arises from the fact that the valuation " definitions " in effect compel the Department to credit to " unim-

iv— C, 4.