H.—29a.

(c) Recommendations regarding Crown Leases and Licenses. Evidence tendered to the Commission indicated that generally the interests of Crown tenants are fully protected in that provision is made for a right of renewal at the end of the terms of leases and for the protection in favour of the tenants of improvements purchased or effected by them. Lessees also have a right to have rents on renewal fixed by arbitration. It was apparent to us, however, that with a view to the provision of means whereby tenants may, if necessary, be compelled to devote attention to the proper utilization and maintenance of Crown land, covenants should be incorporated in Crown leases and licenses whereby the tenants bind themselves to practise regularly good husbandry methods. At present Crown leases and licenses contain little or no provision for ensuring that the lands are properly maintained, and defaulters in this connection cannot be penalized. We are of the opinion that Land Boards, with the consent of the Minister of Lands, should have power to forfeit leases and licenses if good husbandry covenants are not complied with. We recommend, therefore, that action be taken to incorporate the proposed covenants in all leases and licenses granted or renewed in the future and that special covenants be included to suit special circumstances. With regard to existing leases and licenses, the suggestion is made that if any concession or financial assistance is granted by the Crown, such concession or assistance be subject to the execution of a new lease containing appropriate covenants of the nature mentioned above. It is thought that, particularly in districts where deterioration of land is common, where noxious weeds and other pests are prevalent, or where tenants do not practise prudent farming methods, the lack of powers of Land Boards to compel tenants to rectify the position has been a factor contributing to the decline of the productive capacities of the areas concerned. A number of witnesses complained that some leases of Education Reserves are defective in that they do not give adequate protection to the tenants because of the absence of rights of renewal and the lack of protection for improvements effected. It has been asserted that under this type of lease tenants neglect their properties towards the end of the terms of the leases. No doubt this is correct in many instances, but as section 26 of the Education Reserves Act, 1928, provides for the issue of new leases in such circumstances, rectifying the position at the end of the first term of such new leases, we would suggest that every endeavour should be made to induce lessees of education reserves who are affected to apply for new leases in terms of this enactment, thus improving their own interests as well as those of the Crown. (d) Leases of Native Lands. Our attention was drawn on several occasions to the unsatisfactory position which exists in respect of leases of Native lands to Europeans, where little or no provision, is made for payment of compensation for improvements at the end of the terms of the leases and where there are no rights of renewal. Almost invariably the improvements on Native lands held under such tenures are neglected as the expiry dates of the leases are approached. Such areas often become a menace to adjoining lands, and the nature of the tenure does not foster the best use being made of the lands by the tenants. We appreciate fully the difficulties confronting the authorities controlling the leasing of Native lands, but we arc of opinion that the national interests and the interests of the Natives would be better served if a more satisfactory type of tenure were arranged, particularly in cases where there is no immediate prospect of the Native lands being required for the settlement of Natives. We recommend, in particular, that in cases in which tenants are entitled to a charge on the land for the value of their improvements, consideration should be given to the possibility of compounding, for a cash payment, the amount reasonably found to be payable, if renewed leases cannot be granted. The Price ov Land. The evidence submitted in respect of the price of land was so scanty and incomplete as to make it impossible for any conclusive statements to be based upon it except the following : The price of land so greatly affects farming economy that a full investigation into all aspects of the prices of farming land is highly desirable. The Deterioration of Sheep-farming Land. In the main the evidence submitted in respect of deterioration of land was of a general character. This general evidence was supplemented by some striking specific evidence of land deterioration in several districts. The evidence • considered establishes the following facts :— (a) Land deterioration is widespead: (b) It varies greatly in its intensity not only from district to district according to soil and climatic conditions, but also within the one district according to the methods of land utilization which are adopted : (c) It could be greatly minimized by suitable modifications in farming practice, but while in some instances such, modifications would be economic, in other instances they would not be economic, and in still other instances it is not as yet known whether or not they would be economic :

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