3
105
A 414.
Printed
3. The consideration of these proposals was in some degree interrupted by correspondence, the long discussion which arose as to the terms on which Colonial military lands should be surrendered by the War Department to the Colonial Government. Colonial military lands are lands either reserved on the first occupation of a colony, or made over since as a free grant by the Colonial Government, the fee simple of which is held to be vested in the Crown, represented by the Colonial Government, while the War Department has a right of perpetual user for purposes of defence. The settlement arrived at was embodied in the circular despatched by the Colonial Office to Colonial Governors on the 30th December 1894. In this circular, read in conjunction with the previous circular of the 9th June 1890, it was laid down that these properties should be regarded as a permanent defence fund of the Colony, the integrity of which ought to be preserved in kind or value, even though the original lands themselves may be diverted to civil purposes. Accordingly, when such lands ceased to be useful for military purposes, and are, in consequence, surrendered by the military authorities, their value should be treated as forming a capital applicable to providing other lands or buildings which may be required in the Colony for such purposes.
Page 8
Their value so treated would be their full market value at the time, and the Colonial Government would receive the same reversionary rights over the new lands or buildings provided in return as it held over the old ones. The circular provided for a special account to be kept between the two Governments, in which the value of any lands surrendered would be entered to the debit of the Colonial Government, and the cost of those provided in return, up to the said value entered to its credit. It expressly did not legislate for the further provision of lands by the Colonial Government beyond the value of those surrendered. Paragraph 11 states-"The foregoing proposal relates solely to the terms on which Colonial military lands in the hands of the War Department shall be surrendered to a Colonial Government. It does not affect the obligation of a Colony to provide other lands required within its borders for military purposes, whether under some special agreement or under the general obligation resting on every Colony to contribute according to its means to its defence."
A 385 and 523.
4. The question of the cost of provision of barracks for the increased garrison was taken up again in 1892. Eventually the Treasury agreed to the original proposal made by the Committee of 1888, with the modification that, in the special circumstances of the Colony, the condition as to free provision of sites should be waived.
Page 22
A 885.
The agreement arrived at was, therefore, that the full market value of the Colonial military lands and buildings, surrendered by the War Department, would be applied in reduction of the gross cost of the new scheme of works, including new sites, and that the remainder of the cost would be divided between Imperial and Colonial funds, in the proportion of two-thirds to the former and one-third to the latter. The gross cost of the scheme was estimated at 211,000l., or 1,339,536 dollars, in December 1894, and it was proposed to spread the scheme over 10 years; but as it was subsequently considered advisable to press on with the works as soon as possible, and the Colony refused to pay more than a contribution of one-thirtieth of the gross cost in any one year, it was decided that the War Department should execute the whole of the works itself as quickly as possible, and the Colony make an annual contribution, for 10 years, of 45,000 dollars, which was about one-thirtieth of the total cost. The payments by the Colony began with the year 1896, and should therefore continue until 1905.
A 385.
5. It must be observed that up to the present the War Department has not been in a position to surrender any lands to the Colony, so that the portion of the agreement relating to the reduction of the gross cost of the scheme by the value of the surrendered properties is not operative, and practically it is the gross cost that is being divided in the proportion of one-third and two-thirds. The execution of this scheme is now in progress, but is not yet completed. Some land has been already acquired by the War Department for services included in it. In these cases the War Department has paid for the interests of private individuals, where necessary, and included the amounts in the gross cost for purposes of division. But in more than one instance the capitalized value of the Crown rents on the land has been credited to the Colonial Government in the Special Lands Account, instituted in accordance with the Colonial Office circular of the 30th December 1894. This has been done in spite of the fact that practically no land of any value has been surrendered by the War Department, and there are, consequently, no debits against the Colony to be extinguished. The credits could only, therefore, become operative by being set off against the value of surrenders, if ever made, in the future by the War Department. It is probable that more sites will be required for buildings included in the joint scheme, and the question of the proper mode of treating these Crown rents requires settlement.
Page 19
6. In addition, however, to the services included in this scheme there are other new barrack works which will have to be carried out shortly in the Colony, and for which sites may be required. Since the scheme was drawn up in 1894 there has been a further small increase in the strength of the garrison; and the need for small buildings of various kinds connected with the garrison may be expected to arise from time to time. The question of the cost of sites in these cases is one which should be settled, but at present it must be observed that the incidence of the cost of the buildings themselves is wholly unsettled. Their cost is not supposed to be covered by the general contribution of the Colony, and no other arrangement has been made with regard to them.
7. With regard to defence works an arrangement has been arrived at by which the Imperial Government bears the cost of the necessary armament, and the Colonial Government that of the permanent works and sites. This agreement has reference to certain specified works, the Imperial share of which is, under the above arrangement, 28,500l., and the Colonial share, 8,230l.. At the same time (in March 1897) the War Office agreed that certain services, estimated to cost 11,500l., connected with the completion of existing works of defence were to be carried out entirely at War Department expense. No points requiring settlement have arisen with regard to this arrangement about defence works, and there is no proposal to revise it.
RECOMMENDATIONS.
1. It was the opinion of the Conference that it would be impossible to come to any satisfactory permanent arrangement as to the incidence of the cost of sites, apart from the similar question as to the cost of the buildings to be erected. The present situation, with regard to both buildings and lands, was felt to be one that demanded some clear and general settlement. The Conference accordingly decided to recommend that a standing arrangement for the future should be concluded on a principle of division of cost, similar to that adopted in the case of the existing joint scheme, viz., that the gross cost of all buildings, inclusive of new sites, should be divided in the proportion of two-thirds to the War Department, and one-third to the Colonial Government, and that this should be applicable to all works costing 100l. or more in each instance other than what are strictly speaking defence works, with regard to which a satisfactory arrangement exists.
The Conference recognized that it would be very difficult for the War Office to produce, at present, a scheme of contemplated works which would be likely to be final. But it was agreed that one should be prepared and put to the Colony as early as possible. It would be understood to be not an absolutely comprehensive list, but merely as designed, to give the Colony some idea of its additional liabilities in the immediate future under the new arrangement.
2. In the agreement relating to the joint scheme it was clearly intended that any actual cost of buying land from private persons should be divided between the two Governments, but nothing was said as to the method of treating Colonial land, if required, or the Crown rents on property let by the Colonial Government.