—be netted in this summer for the future protection of the infested area. Our idea to have fences to protect the country across from Mt. Marshall and then to fence also into the railway line (indicating on a map). The holdings will be no good without sheep, and the sheep will be no good without tanks? -There has been an agitation for the removal of the fence, but your suggestion of a cross fence is a good one and would not cost much. On the Crown lands which are unoccupied the rabbits should be destroyed at the public expense. If, however, you have a cross fence it will restrict the pest.

7753. We have only dealt with the fencing in of dams? -Are you making that cross-fence suggestion to be undertaken early?

7754. The immediate steps we can recommend are poison and the fencing in of the water. Rabbits scent grass and migrate there? -My conviction is that your suggestion will be a saving of the No. 1 fence. As far as the settlers are concerned I have had no complaints whatever in connection with the present methods of assistance, and there is now before the House an amending Bill which proposes to deal fairly with the selector in the matter of continuing assistance. The Government, in this measure, takes one-fifth, and four-fifths are to be divided under certain conditions among the remaining creditors. The storekeepers will receive more consideration than they have in the past. People are satisfied with the present system of assistance and they have good prospects of adjusting a good deal of their indebtedness to the Board. The one-fifth will only apply to present and subsequent crops and not to past crops.

7755. By Mr Clarkson: Are you in touch with any I.A.B. men? -Yes.

7756. Do you think it would be a good scheme to fund their present liabilities, spreading the repayments over, say, 10 years, so as to give them a good start? -At the moment I am inclined to think considering the class of settler, that it would be as well to carry them on a little longer. many of them might be capable of managing their own affairs if given a free hand with a mortgage over their property, but a guiding hand is necessary. Look at the asset. It is extremely risky. Supposing the State took a mortgage on what was due to the Board and what was due to the merchants and storekeepers. The State at present advances for their living expenses and farming operations. When the harvest is over the State takes the amount advanced and any surplus would be divided, under the Act, among the creditors for the amount due by the farmer. Under this amending Bill the State will take one-fifth instead of the whole of the amount advanced and distribute the rest of the creditors, and are in no way responsible to the merchants for the amount advanced and guaranteed, but that does not affect the old debt.

7757. By the Chairman: The State is acting as assignee under certain conditions, but those conditions do not carry on the merchant's liability indefinitely? -No. In many cases it is over a thousand pounds. Look at the abstract of liabilities which I have seen at the I.A.B. office in a tabulated form.

7758. By Mr Clarkson: Is it anticipated that one-fifth of his crop will suffice? -They take one-fifth of the amount advanced, not the whole advance and one-fifth will be taken away every five years.

7759. Meantime the advances are going on.

7760. By Mr Paynter: It is not provided that prior to any distribution they take out sufficient money to provide the farmer with crops for the ensuing year? -Where we have failed is that the State has never had a Minister of Lands thoroughly conversant with conditions of settlers in virgin country. I consider, in conclusion, that the payment of rent should be deferred.

(The Witness Retired.)