DEVASTATED AREAS

Ashburton Guardian, Volume 51, Issue 128, 12 March 1931, Page 6

DEVASTATED AREAS

REHABILITATION POLICY. THE ADJUSTMENT OF FINANCES., STATEMENT BY THE PREMIER. (Special to “The Guardian.”) WELLINGTON, March 11. In the course of his statement regarding the rehabilitation of the earthquake area the Prime Minister also made reference to other matters connected with the earthquake which would engage the attention of Parliament during the session. ■' He stated amongst other things that it had come to the notice of the Government that some creditors are endeavouring to exploit the present .situation to the detriment of others. To prevent this exploitation, and to ensure debtors of a reasonable amount of consideration, under the abnormal circumstances at present existing, the Government proposes to appoint Adjustment Commissioners for the earthquake area. It is intended to give these Commissioners all the powers of a Commission under the Commission of Enquiry Act, and they will be authorised to prevent any person taking steps to foreclose or otherwise take action pending a full inquiry into the circumstances by the Commissioners. _ The Adjustment Commissioners will be given power to reopen any transaction where foreclosure or other action of a like nature has been taken since the earthquake and their powers of inquiry and adjustment will extend to transactions covered by promissory notes, hire purchase agreements and other payments in suspense where it is likely that hardships would result from precipitate action on the part of the creditors.

The Government has given very careful consideration to this phase of the problem created by the earthquake and it is felt that there should be some independent tribunal set up to adjudicate between mortgagees and mortgagors and that definite power of adjustment should be given to a competent authority if undue hardship and suffering is to be avoided. The Government naturally hesitates to interfere with the rights of creditors either secured or otherwise, but there does not appear to be any alternative in this instance. Accordingly with a view to preventing any whole sale exploitation of tHe present situation, the Government proposes that these Adjustment Commissioners shall be given statutory power of adjustment as between debtor and creditor having in view the relative loss of each as the result of the earthquake. In conclusion, the Prime Minister stated that the earthquake had brought to light many problems which had to be faced, and it was highly desirable in a state of emergency such as the present that power should exist' whereby normal statutory provisions might be waived. With this end in view the Government proposed to. introduce legislation to enable the Gov-ernor-General in Council to make such regulations as were necessary for the public benefit, either to authorise any particular Act or proceeding or to validate acts done immediately after the catastrophe! At the moment it was difficult to decide wjiat was prudently necessary in this connection.

CONTROL OF NAPIER. COMMISSION TAKES CHARGE. (Per Press Association). NAPIER, March 11. The Napier Borough Council to-day formally handed over, the control of the town to, the Commission appointed bv the Government, Alessrs J. S. Barton, S.M., and L. B. Campbell (Government engineer). The proposal is that the Commission, shall decided on all matters on their merits, their actions subsequently being confirmed by the Council. On taking over control, Air Barton said Napier presented wonderful prospects to the town-planner. Business people would soon be on an excellent wicket, but no building would be nermitted till the land resumed its stability. As soon as that was reached the first £SOOO would be available from the Government. Mr Campbell said that what was v. anted was a broad outlook, not a confusing mass of detail.

GRANTS TO LOCAL BODIES. * - WELLINGTON, March 11. A grant of £IOOO from the funds of the Unemployment Board has been made available to the Waive.a Borough Council, in conjunction with the local Unemployment Committee. The chairman of the Unemployment Board (the Hon. S. G. Smith) said the conditions included the rationing of work, the selection of which would be left to the discretion of the local authorities in view of the present exceptional circumstances. The Prime Minister announces that the £IO,OOO loan to the Hawke’s Bay River Board will be free of interest for five years, and thereafter spread over a. period of thirty years at 4 per cent. , IN AID OF RELIEF FUND. i • ■' SWIM OF 7\ MILES. (Per Press Association). ROTORUA, March 11. James B. Deas, aged twenty-five, of Hamurana, yesterday swam Lake Rotorua from Hamurana to Rotorua wharf a distance of seven miles and a half in dhr 30min. There was a light northerly wind, and conditions were good. Deas was self-trained. He was fed on brandy and chocolate. Hinemon’s record was broken for the first time in pakeha history. Deas finished swimming strongly despite the severe coldness" of the water. The object of the swim was to benefit the Eeavthquake Fund.

INSURABLE PROPERTY TAX. DUNEDIN, March 11. The Government’s proposal to finance earthquake reconstruction by means of a surtax on the value oi insurable property is opposed by insurance managers in Dunedin, who regard

the imposition of a flat rate since it is an unfair method of raising money. An earthquake disaster is an unknown quantity and rehabilitation a national matter, but a flat rate is opposed to the fundamental principles oi insurance.” Another manager pointed out that owners of large mills and factories would find the surtax of Is Od per cent, a very heavy burden.