GEORGINA BEYER (NZ Labour--Wairarapa): I move, That the Masterton Trust Lands Bill be now read a first time. It is a pleasure to bring forward this bill for a first reading. The Masterton Trust Lands Trust is a body corporate that holds certain land for educational purposes and for the purposes of public utility in the trust district, and the promotion and assistance of such purposes. It has four particular purposes. First, it assists educational establishments and educational activities in the trust district.

Second, it assists libraries in the trust district. Third, it is concerned with the promotion, advancement, or encouragement in or for the trust district of education, science, literature, art, physical welfare, and other cultural purposes. Fourth, it promotes and fosters in the trust district, or among persons who are, or at some time have been, resident within the trust district, education generally, and is concerned with the promotion, advancement, encouragement, or imparting of knowledge, proficiency, or skill in education, science, literature, art, technical subjects, physical welfare, and other cultural purposes.

The term "trust district" means all the area within the district of the borough of Masterton as that district was constituted on 31 October 1989, and all the area for the time being within the Masterton Small Farm Settlement. The trust had its origins in a small farm association that was formed in 1853. Its purpose was to settle 100 settlers on each of the two chosen sites of Masterton and Greytown.

In 1870 the Wairarapa Town Lands Management Act vested in trustees, and otherwise made better provision for the management of, certain land in the townships of Masterton and Greytown. That land was, before the passing of that Act, vested in Charles Rooking Carter. In part, it was land set apart for the formation of a settlement upon the principle of a small farm association, and in part it was land set apart for public purposes for the service of the settlement. The responsibilities of those trustees, in relation to the parts of that land that were in the township of Masterton, have devolved to the body corporate known as the Masterton Trust Lands Trust, which was constituted under the name of the Masterton Trust Lands Trustees by the Masterton Trust Lands Act of 1889.

The Masterton Trust Lands Trust is now constituted under the Masterton Trust Lands Act of 1966. This bill consolidates and amends that Act in order to bring it into line with current language and best business practice. In addition, the bill requires both electors and members of the trust to reside within the trust district. On that point I say there may be some questions around clause 23, so I hope the select committee---and I indicate to members now that I hope that it will be the Local Government and Environment Committee---may scrutinise clause 23 a little and clarify it. That is a suggestion.

The bill abolishes the distinction between "general trust lands" and "scholarship lands". Historically, the land owned by the trust has been in those two categories. The current allocations of funds for scholarships and education far exceed the returns from scholarship lands. The distinction between the two types of land, accordingly, has no practical significance, and it is proposed that it be abolished by this legislation.

In addition, the bill enlarges the powers of the trust in relation to the disposal of land. The trust's power to dispose of land is subject to a number of restrictions. For example, the powers conferred on the trust by section 38 of the 1966 Act are limited to lands zoned for residential purposes. This bill would widen that power so that it would apply not only to residential land but also to any other land, including commercial and industrial land. That would enable the trust to dispose of land in any case where the trust resolves that its retention is not in the interests of the trust. That will also enable the trust to maintain a more balanced property portfolio.

Further, clause 9 enlarges the powers of the trust in relation to the granting of leases, tenancies, licences, and occupation rights in respect of the trust lands. Section 27 of the 1966 Act declared the trust to be a leasing authority within the meaning of the Public Bodies Leases Act 1908, and the Public Bodies Leases Act 1969, with some modifications, applies in relation to the power of the trust to grant leases and tenancies. It is proposed that that provision not be re-enacted and that the trust cease to be a leasing authority for the purposes of the Public Bodies Leases Act 1969. That change will not affect leases and tenancies that are current when the bill comes into force.

Clause 14 enlarges the powers the trust has in relation to the investment of money not immediately required for use. The existing powers of investment are set out in section 34 of the 1966 Act. Clause 15 enlarges the trust's borrowing powers. Under sections 40 and 41 of the 1966 Act those powers are subject to a number of restrictions. For example, the powers conferred by section 41 may be exercised only with the consent of the Minister of Finance, and upon and subject to such conditions as the Minister thinks fit. The requirement to obtain the consent of the Minister of Finance is not included in this bill. In addition, clauses 10 and 11 of schedule 2 of the bill change the provision made by sections 43 and 44 of the 1966 Act in relation to the accounts of the trust.

Obviously, the Masterton Trust Lands Trust has been a major contributor to society in Masterton and the Wairarapa. I commend this bill to the House. I look forward to support, I hope, from across the House---

Hon. Tony Ryall: A good speech.

GEORGINA BEYER: I thank Mr Ryall for his congratulations on that. I am hoping that he will support us.