RURAL MORTGAGES

Ashburton Guardian, Volume 55, Issue 137, 22 March 1935, Page 3

RURAL MORTGAGES

THE ADJUSTMENT BILL. SECOND READING CARRIED. iPer Press Association). WELLINGTON, March 21. In the ikouse of Representatives today the second reading debate on the Rural Mortgages Bill was resumed. Mr R. Semple (Labour, Wellington East) said he did not think it was possible to bring the country back to prosperity until they helped all the people—not one section. AH the measures of i ecent years had centred round farmers, but there were others in distress besides farmers. He did not think the present Bill would assist anyone. He deprecated the action of the Government in taking the pension of returned soldiers in payment of interest on mortgages. Mr F. Jones (Lab., Dunedin South) said that a bold constructive policy had brought 50 per cent, of the dairy farmers to the verge of bankruptcy and had antagonised the buyers of New Zealand produce. He quoted a number of articles the prices of which he declared had been increased by the increase of the exchange rate and the imposition of the sales tax. The present Bill, he added, was a continuation of the Government's deflationary policy and was class legislation. While workers in cities received no relief, a bondholders security was made [secure. The present Bill would increase costs, and those costs would have to be borne by the farmer, as well as other sections of the community. He expressed regret that no Minister had indicated to the House the result of the recent caucus and whether the Bill was to be proceeded with. Mr J. A. Nash (C., Palmerston) said the main object of the Bill was to enable the farmer to remain on the land. Referring to the Adjustment Commisions, he said that to I ebruaiy 28 last the applications referred to i the Commissions numbered 12,147 and the estimated number of applications filed was 14,000. The ratio of rural to urban applications was 60 to t. The ratio of applications refused to those filed was 1 to 8, or 1550. The number of applications in which relief had heen granted was 10,850, and the ratio of applications filed to those settled privately, that was without recourse to the court, was 1 to 2, therefore the estimated number of cases settled was 21 700, and the total number of cases in* which relief had been granted, privately or by recourse to the court, was 32,550. He thought the Mortgagors Relief Commissions had accomplished a great deal in the short time that they had been operating.

Mr Coates in Reply Mr Coates, in reply, said it was the very last thing a man brought up m New Zealand or Britain wanted to do was to interfere with contracts. H had listened to a number or members who had said that contracts should not be interfered with, but the wondered it that was so in a time of , e ™ evg ®“^ p The House had to decide whether thei e should be a general adjustment between creditor and debtor. H was recognised that much of the indebtedness on rural land to-day could not be recovered, and it was not fair that it should be recovered. He believed that a number of people did not leaks the tremendous difficulty that faced the primary industry on which they depended so much. He thought it was indicated in the Bill that the Government’s intention was to keep all eneigetic, capable farmers on the land, and he considered that the best adjustmen could be achieved if it were left to a body of capable men skilled in all departments. He had not heard anyone in the House say that it was not a problem, and it had been said that something might be done. The Government had decided that it was essential and necessary that the position should be faced up to, and as a result of careful consideration over the last two years it had achieved certain results, but it had not dealt with the overburden. The provisions of the Bill were really compulsory conciliation. He indicated that his party was free to vote as it wished. Mr W. E. Barnard (Lab., Napier): Does the Minister infer that the Bill will go to a free vote of the House? Mr Coates: “If it is suggested that the screw has been put on any membei s of the party, I have never heard oi such a ridiculous suggestion: Every members of the party, if he has definite opinions, can exercise them.” He contended that it had been the making of thousands of farmers in the country to-day. They had agreed to work under a budget. It was a foolish nation that did not live under a budget, and every individual in the nation should live according to the budget. The Bill was read a second time by 44 votes to 26, the division list being as follows: —

Ayes, Ansel! Linklater Bitchener Lye Bodkin McDougall Broadfoot McLeod Campbell McSkimnnng Olinkardi Macmillan Coates Macpherson Cobbe Massey, J. N. Dickie Massey, W. W. Endean Murdoch Field Nash, J. A. Forbes ]Ngata, Sir A. Hamilton Poison Hargest Ransom Harris Hawke Samuel Healy Smith Henare Stuart Holland. Sykes Holyoake Te Tomo Jull Wilkinson Kyle Young Noes. Armstrong Nash, W. Atmore O’Brien Barnard Parry Carr Richards Coleman Rushworth Fraser Savage Howard Schramm Jones Semple Jordan Stallworthy 'Langstone Stewart, W. DDee Tirikatene MeKeen Veitch Munro Webb