893. Grouping them?—Yes.

894. By. Mr. Richardson: Grouping them where practicable?—Yes.

895. By the Chairman: If that estimate of £50 per mile turns out to be £70 per mile, your £160,000 would have to be increased to £240,000?—Yes; there would be a corresponding increase.

896. By. Hon. R. G. Burges: Do you know whether the Government have taken any steps to stop the invasion of the rabbits?—Not from my own knowledge, but from reports I have seen that parties were to be sent out; whether they have gone or not, I do not know.

897. If that is so, why issue instructions to people who carry out what is not in accordance with the Land Act, not to put up a certain fence?—I did not issue instructions.

898. By the Chairman: Is it accordance with the Land Act?—We have a fence put up suitable for large stock.

899. By Mr. Richardson: I understand that you have only advised your clients in their own interests?—No instructions have been given.

900. You have not told them to do it?—No; I have not.

901. By Hon. R. G. Burges: But you have the power to lend the money, and you need not lend it?—It is optional whether I recommend it or not.

902. And if a man will not do what you ask him, you need not lend him the money; you have that power?—I certainly need not to lend him the money.

903. By the Chairman: Mr. Burges evidently does not like the idea of you being able to lend the public funds on a fence that does not come within the Land Act?—When a man makes application, we ask him if his property is fenced. We do not ask him to put up a six-wire fence if his land is fenced with three wires. Then we advance him the money. We do not think so much of the fence, but of the land as security. We will lend him the money if the land is fenced with three wires, because we feel sure that before long he will be obliged to put up a proper fence.

904. You do not have to keep to any Fencing Act?—I do not think so. The land in time is visited by the inspector, who looks after the fencing. I think it would be a hardship if a man was obliged to put up a rabbit-proof fence at once.

905. Hon. R. G. Burges: Ought not to the Government to alter the Land Act, and allow conditional purchase holders to put up a wire fence in lieu of improvements?

906. By Mr. Richardson: I take it that three wires are required by the Lands Trespass Act?—Yes; to keep out large and small stock. I cannot enforce a rabbit-proof fence on them, or any fence. The Inspector of Conditional Purchases comes round an does that.

907. By Mr. Loton: I suppose you would not make any advance on conditional purchase land unless it was fenced?—Oh no; often we lend money to persons who have not the boundary fence up, on condition that we hold back a certain portion of the money to complete the fence, and the person puts up the fence before he draws the full amount.

908. You do not lend money in advance of the conditions of improvements?—Oh, no.

909. If you do lend it at all, it is on the condition that the improvements have to be done within a certain time, and the money goes towards those improvements?—Yes.

910. By the Chairman: Let us make your point clear. As manager of the Agricultural Bank, you consider your securities are already prejudicially affected?—Oh, I think they are.

911. And in the future you can cause for very great alarm, on account of the most expensive improvements that these clients of yours will have to make?—Yes, I do so; I certainly think there is trouble ahead.

912. And you think already it would be advisable, even at this time, to take some steps to encourage to the greatest extent the erection of rabbit-proof fencing?—I have suggested the way they should start with the fencing. People far back, who may be affected, I have asked to put up a three-wire fence. I do not enforce it. I only suggest the fence be put up in two sections. The rabbit-proof netting put to the ground, and a narrower gauge put on and fastened to the lower one.

913. Have you made any representations to your Minister?—Only in a casual way.

914. Only verbally?—Only verbally.

915. No official account?—No; just talked the matter over with him.

916. By Hon. R. G. Burges: What power would you have, after you have advanced the money to the men, to make them put this additional fence on the bottom?—It would be to their own interests to do it; I have no power without stipulation.

917. By the Chairman: Supposing a new applicant came for some money to improve his land to-morrow, have you power to insist on his putting up a rabbit-proof fence?—Yes, I may have, but I do not know how to do it, because it is such an expensive fence.

918. You have just touched upon a point which it is advisable to bring out, and that is, in consequence of this invasion, the country is going to be put to a tremendously increased expenditure on account of your clients in the future?—It should be.

919. Therefore you, as manager of the Agricultural Bank, will have, in the interests of the country, to get some increased powers?—I have the power to do it. I think the last part of the Act gives great power to the manager, but it would stop progress immensely and entail expense, to put a rabbit-proof fence around a conditional purchase; it would stop all other improvements and a lot of clearing.