456
(d). The roads coloured brown on plan to be formed, surfaced
and channelled by Government at its own cost.
(e). Crown Rent for the new lots coloured red on plan, to be
at the same rate per acre as that for Inland Lot 84 and
to commence from the date of notification that such lots
are available.
3.
The financial aspect of the transaction
appears to be as follows:-
Estimated present value of I.L. 84.......... Estimated loss of income derived from
lot for 5 years.
$245,000
45,000
£290,000
Estimated value of areas coloured red after
hill has been cut down....545,776
square feet at 81...
Estimated profit.
545,776
.8255,776.
13
4.
Mr. Landale has, however, asked that a further portion of land should be given, and has pointed out in a letter of which I enclose a copy that considerable expenditure would have to be incurred in developing the land handed back. He enquired whether the Government would, as an alternative, resume the lot as it stands and, if so, at what price. I am of opinion that this course would be the better one for the Government to take from every point of view the only question to be decided being the amount to be paid.
5.
-ly these:-
My reasons for advocating resumption are main-
(a). The Government will obtain the entire area and will be free to develop it to the best advantage without any hindrance from private owners.
(b). The most suitable levels to be adopted when the
nature of the cutting has been discovered can be settled without any questions of breach of agree-
-ment