FARMERS' FINANCE

Ashburton Guardian, Volume 55, Issue 127, 11 March 1935, Page 7

FARMERS' FINANCE

Plan for rehabilitation. PROVISIONS OF BILL OUTLINED. (Per Press Association). AUCKLAND, March 10. Efforts which are being made by tlio Government to rehabilitate the farmer were outlined by the Minister of Finance (Mr Coates), speaking at the Kumeu Show. Dealing with the Mortage Corporation Bill the Minister said a good deal of criticism had come from pe ;ple who contended that the Bill would not help the farmer nor reduce his load of debt. “It should be made very clear chat the Mortgage Corporation is ouiy part of our proposals,” said Mr Coates. “The main purposes of the Corporation are to provide finance at lower interest rates and to place mortgages on a sounder basis, that is, long-term table mortgage. In addition the Corporation will lend up to 80 per cent, of the valuation of the property in any case where mortgage adjustments are being made. “The Rural Mortgagors Final Adjustment Bill, to be introduced on Tuesday, is perhaps the major portion of the legislation,” continued the Minister. This provides—“(l.) That no competent farmer will be put off his property merely because the depression has reduced his ability to pay his debts. “(2) No creditor can sue him for debt if his is a case of which the adjustment Commission approves. “(3) For a period he shall work with his income so allocated as to give him reasonable living expenses, working expenses, etc., the rest to go to Ills eieditors.

“(4) At the end of a period the property is valued, mainly on its earning capacity, to determine what amount of debt it can carry. “(5) The rest of the debt wnl be written off. . “(6) That where it is deemed fair and reasonable equity of up to 20 pel cent, in the property may be given to the farmer. This does not mean that in every case 20 per cent, equity will be allotted. Every case will be taken on its merits.” Mr Coates said the whole proposal was designed to put the farmer on a sound footing, where lie is no longer in danger of being sold up. No longer would farmers be losing heart in the fact of an intolerable debt burden.