86 HOLDINGS 



one-third of the land which he formerly owned, but 

 with this difference that, whereas his previous hold- 

 ing consisted of unimproved land with no irrigation 

 facilities, the area now returned to him would consist 

 of land properly laid off for irrigation, and with rights 

 to a perennial water supply attached to it. The rest 

 of the area would be reserved by Government for 

 leasing to sugar companies. In this way the essential 

 improvements to the land can be made, the requisite 

 skill and capital can be attracted, a profitable sugar 

 industry created, and many of the difficulties removed 

 from which the present system of canal administration 

 suffers. The sugar companies could afford to pay a 

 water rate far in excess of that which the ordinary 

 cultivator can now pay, and in this way the canals 

 can be made to show a profit. It is calculated that 

 by this method canal schemes, which under the present 

 system will pay interest at the rate of 2 per cent., or 

 less, on capital charges which contain no provision 

 for drainage, road making or laying off the land for 

 irrigation, can be made to pay about 8 per cent, on 

 capital charges which provide for these essential de- 

 velopments. 



The objection may be raised that a number of 

 cultivators will in this way lose two-thirds of the area 

 of their lands. This is so, but the one-third area 

 of improved land, equipped with rights to perennial 

 water, will be far more valuable and far more pro- 

 ductive than the whole of the previous holding. 



