INTEREST AND RENT

Ashburton Guardian, Volume 52, Issue 145, 31 March 1932, Page 6

INTEREST AND RENT

CABINET APPROVES REDUCTION. TWENTY PER. CENT. OBJECTIVE. PREPARING. LEGISLATION. (Special to. the " Guardian.") WELLINGTON, March 30. Cabinet settled to-day to its task of preparing legislation for the remainder of the emergency session by sitting morning, afternoon and evening. One of the first questions to receive consideration was that of an arbitrary reduction in interest and rents. It is believed that the principle of reduction has been approved by the Ministry, but the method of effecting it has yet to be determined. Instructions are understood to have been given, however, for the preparation of suitable, machinery which will be submitted to Cabinet merely as the basis of a .scheme for bringing about the desired reductions. This draft legislation is necessarily intricate and will receive close scrutiny. The aim of Ministers is to achieve a 20 per cent, reduction. There is a general belief that the Government by reducing rents, will relieve the position of those holding weekly tenancies. This will be problematical, because the lack of continuity makes this class of security difficult to handle, while agreements may bo terminated or adjusted without much trouble. The Mortgagors and Tenants Relief Bill paved the way for a reduction of rents of land under lease, and no provision was made for other rentals. There is a possibility that the new legislation will merely apply to leases of dwellings and' other buildings in spite of the fact that pressure is being brought to bear upon tho Government to provide for house rents on a weekly basis. The B,t. Hon. G. W. Forbes is reticent upon the work of Cabinet and refused to make any comment at tho tea adjournment to-day. He said anything to be made known would be revealed in the legislation to be placed before Parliament when it resumed on Tuesday. Cabinet was considering the whole position, he added. It is known that the Government realises its work of financial reconstruction must be subjected to a definite plan of action extending possibly over three or four years. To bring about a sudden readjustment would probably be followed by more harm than good owing to the upsetting of the country's financial arrangements. This plan will embrace the readjustment of the State finances and the economic position of producers. It is not likely that it will be possible to frame all the legislation before the session is resumed, but by that time the programme should be well forward and the country soon apprised of the procedure. Life of Parliament, Arising out of this is the question of the length of the life of the present Parliament. So far no more has been done concerning the extension of the life of Parliament from three to four years, although it is considered almost certain tho issue will be before the Cabinet in the near future. The argument is advanced. that the Government cannot be expected to complete its plan at short notice and it would bo unwise to have the programme interrupted. Any extension of tho life of Parliament will bo made, permanent, and it is extremely likely that a move in this direction will be made before the end ; of the emergency session.