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1926. NEW ZEALAND.

LAND FOR SETTLEMENTS ACT, 1925 (REPORT ON THE).

Presented to both Houses of the General Assembly in compliance with Section 109 of the Land for Settlements Act, 1925.

The Land Purchase Controller to the Hon. the Minister op Lands. Sir,— Wellington, 2nd August, 1926. I have the honour to submit the report of the Department for the year ended 31st March, 1926. The extremely high prices ruling for wool, mutton, and lamb during 1924 and the early part of 1925 had the effect of hardening the values asked for pastoral lands, and consequently the sales of large properties, either to the Crown or privately, have been practically negligible during the financial year just closed. Although during that period the Board closely inspected several large properties, which at first glance appeared reasonable in price, careful calculations showed that the loading necessary for roading, fencing, and buildings would have raised the rental values to prospective settlers to such a high point that success could not be reasonably assured, and therefore purchase by the Crown could not be recommended. Offers received during the present calendar year indicate that owners of large properties suitable for subdivision are now willing to offer them at a more reasonable figure, and since the close of the financial year three estates, totalling 14,252 acres, have been purchased ; while negotiations in respect of two other properties, approximating 20,000 acres, have reached a stage that gives reasonable prospect of successful negotiation. During the year, also, considerable areas of second- and third-class lands, mostly in localities difficult of access, have been placed under offer to the Crown, but the Board has not been able to recommend the purchase of such areas, for the reason that it is of the opinion that they are entirely unsuited for closer settlement—being only suitable for holding in comparatively large areas by those having capital available to work them. It is considered that in purely sheep-grazing land of lowgrade fattening-capacity a minimum of from 1,000 to 1,500 acres is required to assure a reasonable living for a family, for the reason that with such land there is a strong tendency towards reversion to manuka and native grasses every few years. Although for many years such lands have been successfully farmed by capable men in areas of 2,500 acres and upwards, recent investigations under the discharged soldiers revaluation have gone to show that this type of land cannot be settled successfully in small areas unless it is in close proximity to good transportation facilities which will permit of the use of lime and other top-dressing mixtures at the lowest possible prices. During the year there have been several applications for the formation of associations under the Land Settlement Finance Act, which undoubtedly offers facilities for the subdivision of improved properties. The legislation, however, is in need of amendment in several respects before it can be applied with any prospect of success, and pending action in that direction it is not proposed to form any new associations. In conjunction with the Railway Department the purchase of 681 acres in the Hutt Valley has been completed at a total first cost of £180,741. The necessary roading, sewerage, &c., of the area is being pushed on as quickly as possible, and although these purchases hardly come under the heading of closer settlement, as the term is generally understood, it is confidently anticipated, in view of the demand existing for urban and suburban allotments, that the Department will shortly be reimbursed for its expenditure, leaving, it is hoped, a substantial surplus towards meeting the cost of railwayconstruction.