BILL PASSED

Ashburton Guardian, Volume 55, Issue 130, 14 March 1935, Page 3

BILL PASSED

MORTGAGE CORPORATION. MR POLSON ATTACKS MR COATES (Per Press Association). WELLINGTON, March 13. The third reading debate on the Mortgage Corporation Bill Avas resumed in the House to-day. Mr W. J. Poison (C, Stratford) reiterated that the Bill in its present form was not acceptable to farmers. There was no assurance in the Bill of a sufficient fall in interest rates to do the farmer any good. He thought the Minister had allowed certain interests to warp his judgment. He had put the clock back 30 or 40 years, when capital dictated to the country entirely. Judging from all the evidence he could gei from the farming community, endorsed by evidence from the urban community, the Bill had no friends. The supporters of the Government were not at all satisfied with the Bill, 'particularly with the inclusion of shareholders' capital. It was clear in his opinion that party loyalty had transcended the interests of the country. The Government was disguising the fact that it was behind the Corporation. The Government must meet any failure of the Corporation to meet its liabilities. The Hon. W. Downie Stewart (C, Dunedin West) said the object of the Minister was quite commendable, but the same (result could have been achieved in a much less cumbrous manner if effect had been given to the report of the Rural Credits Commission. Had that been done it would have obviated all the complications of the present legislation. A . Mr W. Nash (Lab., Hutt) said that the Minister had not shown one traction of advantage that would come to the country by the introduction of private shareholders. He also protested against the fixation of the dividend at U per cent., and; said that money could be secured much more cheaply if the Government desired, the (jrevernment was'simply building a barrier round the financial institutions as it had erected barriers round other institutions. _. , Mr A M. Samuel (Ind., Thames) urged that the Commissioners of Crown Lands should be made associate directors of the Corporation as they were fully acquainted with and were sympathetic with the needs of returned soldiers.

Minister's Reply. Mr Coates said it was not correct to say that the fixation of the dividend rate raised the rate by a half per cent., because the original provision was tour per cent, or one per cent, above the bond rate. He also claimed that there was no relationship, between the interest rate and the dividend rate. The question of the liability of the Crown •for rates was a broad question and should not have been raised on a, Bill of that sort. The position some local bodies were in as a result of a Court decision that the Crown was not liable for rates was being prepared, ne admitted that, it was a hardship, but no Finance Minister would be justified in making, the country at the present time liable for £500,000. He sincerely hoped that when the final vote was taken and the Bill passed, members would give every assistance to make it a success. He also agreed to take Mr Samuel's suggestion into consideration. The third reading was challenged, and on a division being called lor the Bill was read" a third time by 40 votes to 28, and passed. As Ministers wished to be present at Government House to-night the House rose at 5.35 p.m. till to-morrow afternoon.