D.S.S. MEN.

Auckland Star, Volume LXVI, Issue 55, 6 March 1935, Page 10

D.S.S. MEN.

MEMBERS' FEARS. FUTURE OF SECURITIES. OPPOSITION TO TRANSFER. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Strenuous efforts by returned soldier and other members of the House to have discharged soldier settlement securities excluded from the administration of the Mortgage Corporation proved unavailing yesterday afternoon, when, on a party vote, the com -Jittee considering the legislation negatived the relevant amendment of Mr. A. M. Samuel (Independent, Thames) by 30 votes to "-•"'• Voting again with the Labour Opposition and the Independents was the Government member for Stratford, Mr. W. J. Poison. Fears that under the new organisation the soldier settler would not fare as well as he had uivler Departmental administration did not appear to be allayed by the Minister's assurance to the contrary. It was vigorously urged by supporters of the amendment that the Gr.vernment shouLl ensure that its contract with the soldiers was honoured.

In moving his amendment Mr. Samuel expressed the fear that if mortgages of discharged soldier settlers were transferred from the Lands Department, which had always administered sympathetically the affairs of returned soldier mortgagors, to the Mortgage Corporation, there would be hardship for many of the men. Under the supervision of the corporation the treatment of the soldier mortgagors would be the same as that accorded the general settler and not what the ex-serviceman was entitled to. Many soldier settlers had given orders on then pensions as well as their dairy cheques in order to meet their commitments to the State, and he feared that under the new institution their lot would be difficult.

Assurance Wanted. "If the Minister will assure the House that under the new logisation the discharged soldier settlor will receive the same treatment as he has had in the past, I shall be satisfied," Mr, Samuel said. "But I fear this is the breaking up of the Discharged Soldiers' Settlement Act, which has already cost New Zealand some millions of pounds, which sum the Dominion, realising its obligations to the returned eoldier, has paid willingly. I urge the Minister to consider a revaluation of all discharged soldier settler properties. That would give the men a chance. If no revaluation is made, a lot of these men will be put off their farms. Returned soldiers have met many enemiee in their time, but none so formidable as this corporation may be." Mr. H. M. Rushworth (Country, Bay of Inlands) suggested that while the benefits returned soldiers might obtuin under the Act were problematical, the disadvantages were obvious. "Nothing Right." "I can see nothing right with this clause," eaid the Leader of the Opposition, Mr. M. J. Savage. "Jf it is wrong for returned soldiers, it is wrong for the workers, it is an injustice to all classes of the community. I am opposed to handing workers' securities over to a senii-prjvate corporation, but this committee in large numbers has already voted in favour of the principle." Under the clause the Crown was breaking agreements without consulting the partiee concerned. He indicated that while he was prepared to exclude one section if that were all that could be achieved, lie proposed to divide the House in the hope of securing exclusion for all—rural, local body, workers' and soldiers' advances.

"We want fair treatment to all our people, including the returned soldiers," said Mr. W. J. Jordan (Labour, Manukau). "It is not a case of the returned soldiers against the State Advances mortgagors." Returned Soldiers' Rights. Mr. A. J. Stallworthy (Independent, Eden) said that manifestly the returned soldier would be in a worse position under the corporation since the rate of interest he paid now was lower than that at which, on the Minister's own figures, would be charged by the new institution. Mr. H. G. Dickie (Government, Patea) agreed that the returned soldiers could not possibly reap any benefit under the scheme.' According to Mr. W. J. Poison (Government, Stratford), the returned soldiers had had a fair run from tht» Government, but now it was proposed to hand them over to the tender mercies of a corporation which would havo as its object the necessity of earning dividends. An assurance that the corporation would honour the contract made between the Government and the returned soldiers was sought by Mr. J. Hargeat (Government, Invercarjrill), who asked also that, in the event of money cheapening, contracts would be altered to ensure that the returned soldier mortgagor reaped some benefit from the lower interest rate,

Minister's Promise. Indicating that the present intention was to transfer tho securities to the corporation, the Minister of Finance, Mr. Coates, assured the House that under the operation of the new Act discharged soldier settlers would continue to experience sympathetic administration. Mr. Coates said that Mr. Samuel was unnecessarily alarmed- Under the claine the securities "might be" transferred. Mr, Samuel: The clause says "shall."' Mr. Coates: Yes, but there are qualifications which leave it entirely to Mie Minister to say whether they shall be transferred, and, if so. what proportion, and whether any should come back again. Mr. Coates eaid that the Minister would watch, with transfers, to see what benefits resulted, and if problems arose which, in his opinion, indicated that it would be better for a portion to revert to tho original administration, power wa» taken to enable that to be done, Mr.." Samuel: Has the question beon discussed with the returned soldiers? Replying in the negative, the Minister said he thought it rnuld be loft to the to see that whatever terms nn;l conditions were deemed necessary, the sohlipr settlers would receive the sympathetic consideration to which they were entitled. y Mr. P, Frasor (Labour, Wellington Central): How on earth can they be better under this Act? Mr. Coates said he expected that those who were paying 5 per cent interest would be able to get a substantial reduction in interest rates, with the mortgages arranged over, a period of years that would suit them wore eatisfactorily. .

Tei Prevent Harsh Treatment. Mr. Coates emphasised that there was no implied covenant that mortgages would not be transferred. Everyone who had a mortgage had contracted to payinterest. As a general rule, mortgagors were willin™ to pay, the trouble being with many of them that they could not. The Crown had reserved the right to prevent the organisation from dealing harshly with pases in which it felt eueh a course should not be followed. The same applied with the returned soldiers. Mr. Coatoa declared that the main obligations to the discharged soldier settlers would be maintained. "I think I can now >.iy," he added, "that it will be to the advantage of returned soldier* to come under the administration of the corporation. Circumstances may change and alter that. In the meantime it is wise to keep an open mind. The intention at the moment is that the mortgages will be transferred." Speaking later, the Minister said that if the corporation could render a service to discharged soldier settlers, then ruirclv there could be no objection to their* mortgages being transferred. The stair of the State Advances Department and the Lands Department who were administering thoso mortgages would be taken over by the corporation. Mr. Poison: The staff will not have anything to do with the policy. Mi , . Coates: There can be only one policy—that of sympathetic administration—but if that is taken to moan that no one is to pay interest, I do not agree with it. In answer to an interjection, the Minister- said that if an arrangement had been made whereby payments on loans had been reduced through the inability of the mortgagee to pay his full obligations, then that arrangement had been made whereby payments on loans had been reduced through t.ho inability of the mortgagor to pay his full obligations, then that nrrtingemcnt would stand. There was a file of every ease which had been dealt with by a Government Department, and it was simple to obtain individual histories.