Jan. 7.] THE NEW ZEALAND GAZETTE. 5

72. All dealings with or under leases in contravention of the provisions of the said Act as to transfers of leases shall be absolutely void, and the District Land Registrar shall refuse to register any dealing with or under a lease until he is satisfied that the said provisions have been complied with.

Residence and Improvements.

73. Every lessee shall, within twelve months of the commencement of his term, and thereafter for a period of six consecutive years, reside on some portion of the lands leased by him.

This condition shall not apply to any person who has acquired an interest in any lease under an intestacy or by virtue of a will.

The Council may dispense with the necessity of such residence, in the case of bush or swamp lands, until four years after the commencement of the term, and altogether as to all lands if the lessee resides on lands contiguous to the lands leased. Lands shall be deemed to be contiguous to each other if only separated by a road or stream, or by such interval of space as the Council may in each case determine.

In cases of youths who may become lessees, and who are living within the Maori land district and are residing with their parents or near relatives, the Council may dispense with residence until four years after the commencement of the term.

When any two lessees shall lawfully intermarry, the Council may dispense with residence by either of such lessees on the lands comprised in one of the leases.

74. Every lessee shall bring into cultivation—
    (a.) Within one year from the date of his lease, not less than one-twentieth of the land leased by him;
    (b.) Within two years from the date of his lease, not less than one-tenth of the land leased by him;
    (c.) Within four years from the date of his lease, not less than one-fifth of the land leased by him.

And shall, within six years from the date of his lease, in addition to the cultivation of one-fifth of the land, have put substantial improvements of a permanent character on first-class land to the value of £1 for every acre of such land, and on second-class land to an amount equal to the net price of every acre of such land: Provided that in no case shall the additional improvements required on second-class land be more than 10s. per acre.

Valuation of Improvements.

75. Whenever a lease is to be sold or otherwise disposed of, subject to a payment of the valuation of the improvements made on such lands, such valuation shall, in all cases where it is not otherwise provided by the said Act, be made one month at least before the expiry of the existing lease, in such manner as the Council shall direct; and payment of such valuation shall be made to the Council on or before the day of the commencement of the term of the new lease by the purchaser of such lease.

Whenever a lease is forfeited for breach of conditions, the Council shall cause such valuation to be made on recovering possession of the land.

76. The amount of the valuation of the improvements, when paid by the purchaser of a new lease, shall be paid by the Council to the original lessee, less any arrears of rent or other moneys due in respect of such land by the outgoing tenant; and, in case of forfeiture, less also the amount of expenses incurred in recovering possession of the land and the lease or other disposal thereof.

77. In every case of the forfeiture of a lease for breach of conditions the payment of the amount of the valuation of improvements, or of any part thereof, shall be absolutely at the discretion of the Council.

78. If payment of any such valuation is not made as aforesaid the Council may sue for and recover the same in any Court of competent jurisdiction from the person who should make such payment.

79. No outgoing tenant shall have any right or claim against the Maori owners or the Council in respect of the value of any improvements made by him on the lands in his occupation, in case any person shall fail to pay such value to the Council.

80. All claims for compensation in respect of any matters arising under the said Act, or for value of improvements or other matters, shall, unless otherwise specially provided, be settled in the manner provided in Part III. of “The Public Works Act, 1894,” for which purpose the said Part III. shall be deemed to be incorporated with the said Act.

In every such claim the Council shall be the respondent.

81. Where it is provided or agreed that any matter shall be referred to arbitration, then such reference, unless herein otherwise provided, shall be to one or more arbitrators appointed by the parties on each side respectively, and an umpire to be appointed by such arbitrators.

(a.) If either party shall fail to appoint an arbitrator within twenty-one days after being requested in writing to do so by the other party, then the arbitrator appointed by the other party shall alone conduct the arbitration, and his decision shall be final and binding on both parties.

(b.) If the said arbitrators shall fail to agree upon the matter referred to them within twenty-eight days of the same having been so referred, then the matter so referred shall be decided by an umpire to be appointed by the said arbitrators, whose decision shall be final and binding on both parties.

(c.) Every such arbitration shall be carried on in the manner prescribed by “The Arbitration Act, 1890,” and be subject to such last-mentioned Act in the same manner as if the reference to such arbitration had been made by consent of parties under a deed.

(d.) Each party shall pay his or its costs of such reference; and any costs incidental to the appointment of an umpire shall be paid equally by the parties to the arbitration.

(e.) Such arbitrators or umpire shall have all the powers vested in Commissioners by “The Commissioners’ Powers Act, 1867,” as well as all the powers given to them by “The Arbitration Act, 1890.”

82. Before any appraiser enters into the consideration of any matters referred to him under the said Act, he shall, in the presence of a Justice of the Peace, make and subscribe a declaration as in the Form N in the Schedule hereto, or to the same effect and meaning.

Renewal of Leases.

83. Not sooner than one year and not later than three months before the end of the term for which the lease is granted, a valuation shall be made by arbitration, or in some other manner that may be agreed upon between the Council and the lessee, of the then value of the fee-simple of the lands then included in the lease, and also a valuation of all substantial improvements of a permanent character made by the lessee during the term and then in existence on the land then comprised in the lease.

The publishing of the valuations made as aforesaid may be effected by serving a copy of the same on the lessee and another copy on the Council; and thereafter, but not later than two months before the expiry of the term for which the lessee then holds the lands, the lessee shall elect, by notice in writing delivered to the Council, whether he will accept a fresh lease of the said lands for a further term of twenty-one years from the expiration of the then term, at a rental equal to not less than five pounds per centum on the gross value of the lands after deducting therefrom the value of the substantial improvements of a permanent character as fixed respectively by the valuation.

84. If the lessee shall not elect to accept a renewal as above mentioned, or shall refuse or neglect to execute a lease within seven days after the same is tendered to him for the purpose, a lease of the said lands shall, not later than one month before the end of the term for which the terminating lease was granted, be put up to public competition by public tender for such term of twenty-one years, on the following terms and conditions:—

(a.) The upset rent shall be such rent as shall be fixed by the Council, not being a greater sum than that at which the lease was offered to the outgoing lessee under the last preceding clause.

(b.) The amount of such upset rent shall be stated in the advertisements calling for tenders; and it shall be a condition of tender that the tenderer shall, together with his tender, deposit the amount of one half-year’s rent, which shall be returned to him if he fails to obtain the lease.

(c.) If any person other than the outgoing lessee be declared the purchaser, he shall, within seven days after the day fixed for opening the tenders, pay over to the Council the amount of the value of the substantial improvements of a permanent character as fixed in manner provided by the last preceding clause.

(d.) When the day has arrived on which the terminating lease expires, or thereafter, if the Council shall have satisfied itself that the outgoing lessee has let the new lessee into quiet possession of the lands to be leased, and that none of the improvements on the lands which were thereon when the valuation mentioned in the last preceding clause were made have been destroyed or appreciably damaged, the Council shall pay over to the outgoing lessee the amount received by it from the incoming lessee as aforesaid.

(e.) If any of the improvements as mentioned in the preceding subclause have been destroyed or appreciably damaged, as in the said subclause referred to, then the value of the improvements so destroyed, or the cost of repairing such damage,