SOLDIER SETTLERS.

Auckland Star, Volume LIV, Issue 182, 1 August 1923, Page 8

SOLDIER SETTLERS.

PROPOSALS FOR RELIEF. TWO YEARS ARREARS SUSPENDED. £300,000 FOR FRESH LOANS. REVALUATION TO PROCEED. ESTIMATED WRITINGS OFF TWO MILLIONS. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Tuesday. The Premier made his promised statement of the Government's policy in relief of soldier settlers when an amendment of the Discharged Soldiers Settlement Act was introduced by Governor's Mes-

nge in the House to-night. It showed that a central board is to be constituted to control the scheme, working with local committees, who will undertake revaluations where needed, this probably involving writing down to the extent of two millions. Further capital is to be provided for loans to settlers. They will be relieved of two yeare' arrears of interest from July, 1921, which will be kept in suspense free of interest, and an attempt will be made to reduce, or amalgamate with Crown mortgages, any second mortgages which exist.

EXPLANATION BY THE PREMIER. The Prime Minister made a complete statement of the principles of the bill. It ■was based, he said, on reports of the eleven inquiry boards set up, but did not embody their conclusions, as there were eleven different sets of recommendations. A very great deal of good work had been done by those boards, but there was a very great deal yet to be done. However, if the House agreed to the proposals now submitted it would put soldier settlers (in a much' better footing than they had ever occupied up to the present. The first important provision was a machinery provision. Jt provided for the getting up of a central board to administer the Act. The chairman would be- the permanent head of the Lands Department, while another member of this central board would be the Valuer-General, and certainly one more, probably two more members. They would have a great deal of work to do, and in connection with this board there would be committees in each land district. THE REVALUATION PROCESS. These committees would do the work of revaluation. "I do not want to suggest or imply/ , continued Mr. Massey, "that every section will be revalued, because, as a matter of fact, a very large proportion of soldier settlers have not indicated their intention to apply for revaluation. Perhaps they-will, or they may not, but it is intended to provide for revaluation for every soldier settler ■who applies for it. This is a big undertaking. There are not only lands held under lease or license, but mortgages Lave also to be taken into consideration. What is intended, so far as mortgagee *re concerned, is that the soldier may, if he thinks he requires it, apply for a reduction. He applies for revaluation and if this results in a reduction of hie value, it has the effect of reducing hie mortgage. It is not nearly so complicated as it might appear at first glance, but there is more work in it than one can imagine. THE SECOND MORTGAGE.

"Then the second mortgage comes In. One of the most serious difficulties (and there is provision in the bill to deal with it) is that of soldier eettlers applying for revaluation of land mortgaged to persons in addition to a mortgage to the Crown. This will go to the Central Board, and the revaluation will give opportunity for negotiating with the mortgagee.

Mr. Masters (Stratford) : What relief will the soldiers get in the meantime? Mr. Massey: The relief in the meantime will be that all arrears will be postponed for a period not exceeding ten years and free of interest. The arrears of interest on mortgage will be postponed in the same way for period not exceeding the term of mortgage. Mr. Masters. Not written off?

Mr. Mas3ey: No, not written off. We propose to give them the opportunity in the meantime of showing what they can do, that in ten years' time, or on expiry of the mortgage, we will be able to do the right thing. In the meantime they will not be called on to reduce their arreare by a copper or to pay interest thereon. That is one of the most important provisions. Where the land mortgaged to the Crown- is also subject to a second mortgage, there is a fresh complication, but, even in connection with that, we will be able to 'find a way out.

Mr. Corrigan (Patea): What do you propose to do to free the second mortgage?

Mr. Massey: In most cases we can do so by negotiation. We cannot -wipe it out; we cannot tear up the "scrap of paper"; but I have not the slightest doubt in most cases a satisfactory arrangement can be made. When the balance that remains and the amount of the first mortgage does not exceed the" value of the land, it is intended that the two together will form one mortgage to the Crown. Mr. J. A. Nash (Palmerston North): Will you allow a soldier to sell his property to a civilian who will take over the mortgage? Mr. Massey: The right to sell must depend on the Minister and the Department. These lands, are not given to soldiers for speculative purposes, but to give soldiers a chance to make a success of their holdings. FURTHER LOANS PROMISED. "There are a number of soldiers who have exceeded their capital. We Villi liave supplies of fresh capital, and there is provision in the bill to that effect." Mr. W. H. Veitch (Wanganui) : Over the present maximum of f2,500? Mr. Massey: Yes. As Finance Minister I have been asked to provide £300,000 additional for this purpose nad 1 expect to do it. A Member: For immediate advances? Mr. Maseey: Yes. And there is another provision of importance to the soldiers. It is this. The Act is retrospective to a certain extent, and it is retrospective for the benefit of soldier settlers wiping off arreare. The wipine off of arrears will date back for two years, namely, to the Ist of July, 1921 Sir John Luke: Wiped off or*in suspense? Mr. Massey. In suspense. Mr. O. J. Bawken (Egmont): Will a portion be written off if the valuation proves too high? Mr. Massey: If the valuation proves to be lower than at present—that will probably be the case when reductions are made on revaluation—these will also count from the let of July, 1921. That will give the soldier settlers the immediate benefit of all the provisions in the bill without waitnig. Therefore he will commence, if not with a clean sheet, with a clear field, and under better conditions than at present.-

Mr. Masters: What about those who are quite up with their payments t Mr. Massey: They have no arrears to hold over. All we can do is to give that man more encouragement. Mr. Masters: Pretty hard on him. Mr. J. R. Corrigan (Patea): Assuming that his land is reduced in 'value, will the man who is up-to-date in his payments get a rebate? Mr. Massey: Yes, it begins as from 1921. Mr. Corrigan: He would get credit for it? Mr. Massey: Yes. Mr. Masters: Even if his arrears arc paid up? Mr. Massey: He will get credit for any overpayment in proportion to any reduction in valuation. There are quite a number of soldiers who are quite satisfied. THE PROBABLE COST. Members: What is it going to cost? Mr. Maesey: It is impossible to say, but, making a rough guess, it will cost two millions. That is only an estimate. Mr. Corrigan: We will get out of it lightly if we get out for that.

Mr. Massey: I have gone into it as thoroughly as possible, but it is quite impossible to say exactly what it will cost. It is not the additional money; it is the writing off. The sum of £300,000 for purposes of new advances has, of course, got to be cash. Mr. S. G. Smith (Taranaki) : We will get it back indirectly. Mr. Massey: Oh, yes. The main object of the bill is to give these men a chance. The reports to hand tell mc those not likely to make a success have been weeded out. There has been a weeding out process all the time, and not many men of that class are left. The men there now are mostly men likely to make good. I have mentioned the main points in the till.

Mr. McKay: Is there any provision made for the* parents who advanced soldiers sums of money that have made certain soldier settlers apparently successful ? Mr. Maseey: That, I take it, is between the soldier and the parent, -with whom we do not interfere unless there happens to be a mortgage. If a parent holds a second mortgage, arrangements will have to be made in the ordinary way. Mr. McKay: In many cases there will be no mortgage. Mr. Massey: I can imagine there will •be each cases, but it is not possible to meet every case. I want to say that right away, but the Central Board will, be given, and must be given, a very great deal of discretion. THE LOCAL COMMITTEES. Mr. Masters: Will local committees only have power of recommendation ? Mr. Maesey -. . Local committees are intendeo. to give valuation. Mr. Masters: And make recommendations.

Mr. Massey: And make recommendations. We intend to bring in as many as possible of those -taen who formed boards of inquiry. In big districtß, such as Wellington or Auckland, there will be two or three committees, but in most eases one committee will be sufficient. • . .

Mr. E. A. Ransom (Pahiatua): How will committees be set up?

Mr. Massey: On the 'recommendation of the Central Board. There must be ■more organisation than we have, ever attempted. I -do not want to give a wrong impression. This revaluation is bound to take a long time; it cannot be done in a month or three months. If we do it in six months we shall do well, but there will be no trouble about dating back. Whatever is the revaluation it' will take effect as from • July, 1921.

Hon. D. Buddo (Kaiapoi) : Is there any provision for soldier settlers meeting their liabilities to local storekeepers who are at present, sharing the annual return with the Land Board? Mr. Massey: That will come in under the heading of advances. Do you, mean tlie possibility- of money being found for it ? Mr. Buddo: Yes. Mr. Massey: I take it that what would happen if the committee recommended a case as one of hardship, that an advance would be made for that purpose. There is no question that we have a number of very- good men on boards of inquiry. Mr. McKeen: Will soldiers have representation ? Mr. Massey: That has not been settled. Mr. W. S. Glenn (Kangitikei )•: Will t£300,()00 cover advances? Mr. Massey: That is my opinion. Mr. Glenn: For stock ? Mr. Massey: Yes, we think £250,000 sufficient, but to make s,ure that there will be no shortage we have made it £300,000. The Bill was then read a first time and referred to the Lands Committee. Mr. .Massey stated that in all probability the other Bill, : dealing with incapacitated soldiers, will be introduced tomorrow. - ■•■"

POINTS FROM THE BILL. There are some provisions in the bill which throw further light on the Premier's statement. Tha district revaluation committee is to consist of three persons, of whom at least two shall have reputed knowledge of local land values, and of farming generally, and snail be appointed to exercise its functions for a particular land district or. for a defined portion of any such district, holding office at the pleasure of the Minister of Lands. Land agents are expressly disqualified from holding office. Provision is made for the payment of members of the Dominion board and district committees. Applications for reduction of rent or revaluation must be made within six months of the passing of the Act. These will be reported on by, district -committees to the Dominion board, which will determine the valuation and readjust rent. If the land is leasehold, applications for a reduction of mortgages are subject to the same procedure, with additional power that the board may extend the terms of the mortgage to 36} years from the date of the reduction.-, Where land is subject to private mortgage, the Dominion board is empowered to negotiate with the mortgagee, and any moneys payable in respect of such mortgage may be paid out of the discharged soldiers' settlement account, or the Minister of Finance may, subject to the consent of the mortgagee, issue debentures charged upon public revenues for the amount of the purchase money, or for any portion, for such a term and bearing interest at a rate not exceeding five per cent. Clause 11 (which gives the Dominion ihtl *2 **** with arrea «) state* «urt the board may remit, wholly, oMn Part, and rent or interest, but such no'.t Ponenenfc i, limits to ten yeaw/ "