HAWKE'S BAY DISASTER.

Press, Volume LXVII, Issue 20198, 28 March 1931, Page 15

HAWKE'S BAY DISASTER.

RELIEF BILL BEFORE HOUSE. OUTLINE OF PROPOSALS. DISCUSSION NEXT WEEK. (JBIM AISOC7ATIOK TSLIGKAU.) WELLINGTON, March 27. ' The Hawke's Bay Earthquake Bill was introduced by Governor-General's Message in the House of Representatives this evening. Mr W. E. Barnard (Lab., Napier) asked the Prime Minister, the lit. Hon. G. W. Forbes, "when he would proceed to the second reading and subsequent stages. . V ' Mr Forbes: As soon as the other business, at present before the House, is completed. Mr J. O'Brien (Lab., Westlandj> Hiding behind the .earthquake. ■ ■., The Bt. Hon. j. G. Coates, Leader of the Opposition, asked whether the legislation followed the lines of the statement recently made by the Prime Minister. 1 ' Mr H. E. Holland, Loader of the La-; bour Party, said he wanted to urge Mr Forbes to go right ahead with the earthquake legislation now. Apparently he waa going to endeavour to make use of it for Party political purposes, but he considered the Prime Minister should° be capable of rising above such a proposal. The legislation could be put right through in one night/ (Labour members: Hear, hear!). The Prime Minister was adopting the attitude that until the ''class legislation" at present before the House became law, the people of Napier were to get ho relief. It would be a matter of astonishment to the world that New Zealand had a Government and a Prime Minister so utterly incapable of responding to a great national situation, because of a desire of furthering contentious legislation. There would, throughout New Zealand, be no humanitarian element that would stand for what Mr Forbes was doing. If he thought he was-going to take advantage of the earthquake legislation to fficilitpte -putting through the Finance Bill, which was ' brought down, at the instigation of Sir Otto Niemeyer and financiers in Great' Britain and this country, ho was making a mistake and would find it a fight' right through. Mr Holland-added that he hoped Pfiine Minister would reconsider his decision, Mr R. Semple (Lab., Wellington East): He's xiot big enough. Unreasonable Proposal, Mr Forbes expressed the opinion, that' Mr Holland not retained his usual conunpn sense. - He, was asking ' the House to, put through in one night at' Bill opening up a number, of sew priu-! ciples, and was not at all reasonable. (Reform members: Hear, hear). If the House passed tho legislation in that way it would only react on it. ' Mr Forbes said he had realised it was hie duty to test the" feeling of the Hpuse on the Government's finance proposals before introducing . any other legislation. On the fitst day of the session be had been told that the industrial proposals would mean the defeat of the Government. The debate on the Finance Bill had got beyond reft* sonable argument and-discussion. Exhaustive means had' been adopted to see whether the Government could be broken down physically. After all, he added; a democratic Government depended on a majority decision of Parliament. if Mr P. Fraser (Lab., Wellington Gen- ' tral) declared that Mr . Forbes. had tested the feeling of the House very early in the -session; in' lafct, on a noconfidence motion at (the time of Address-in-Reply debate. He then had a clear indication as to the possibility of getting the Finance Bill, through. k i Much Thought Bequixed. Mr A. E. Jull (U., Wai'pawa) said be considered that the' earthquake legislation would require a good deal more than one night's consideration. # He felt that the House would not be justified in putting tho Bill through before the representations of the people in the affected areas had been placed before members. He himself had certain pro? posals to malje, and might desire to Beek their incorporation in the Bill., Tho time had come when members should refrain from making any accusations or counter-accusations, in regard to the political, aspect of the introduction of the Bill. • Mr Barnard said he agreed that there should be no Party feelings in regard to "the measure, and that the Bill introduced new principles roquiring careful examination and study. That, , how:, ever, was no Teason why there, should bo any delay in. taking the second reading, which he thought might be, discussed on Tuesday or Wednesday next. Mr G. C. Black (Ind., Motueka) asked whether the Bill contained a provision regarding the .transfer of the funds subscribed for sufferers by the West Coast earthquake. ■ Mt Coates 'said his side of' the House was not prepared to agree to ; rushing the legislation through. For instance, the insurance questions involved very careful examination., .. . . Mr H. M. Campbell (E., Hawke s Bay) said he agreed, with the Prime Minister that it was essential that the Bill should be -thoroughly discussed before its passage. ' , ~ V Mr J. McCombs (Lab., Lyttelton) said the Prime Minister had referred to physical exhaustion, When , the United Party camo into office it had a leader physically unfit,. but mentally alert. The Party was now physically fit. (Laughter,) He added that the Bill would have-to be read a second time pro forma befor© being referredto the Select Committee for the hearing of evidence. He considered that ,tffe Bill should 'be read a second time pro forma, and the Committee should be Sot up immediately to commence the hearing of evidence on Tuesday. Bill Explained. Explaining the Bill, Mr Forbes said it was highly technical. • It proposed :'''?. Bet up a tribunal for the adjustment of rights and liabilities, with respect to mortgages, etc., in connexion-with-dam--, aged property. • The, > question of rehabilitation and authority to make payments out of the 1,500,000-fund was included, also authority to make loans to local bodies. There ft Btunber

of machinery clause®, alio a section dealing with theinsuranea tax». HFhat aspect alone introduced. ft new'principle, and it was only right, that the various views on the subject should be considered. The imposition of an inSnra&le property tax was proposed, and there were other items, 1 such as authority for the State Advances Superintendent to allow the usual rebate of interest where prompt payment of instalments .had been prevented by the -earthquake; authority ■ for the transfer of moneys from the West Coast Earthquake Fund; the extension of the power of local authorities to borrow by waj|jbf overdraft; the postponement of wie elec--1 tionrf of Mayor and Councillors for tho boroughs of Napier and Hastings; tho appointment of a special committee by the. Napier Borough Council; the. audit of the earthquake relief funds by the Audit Office; and, power to make regulations rendered necessary by the earthquake. • Mr Semple spoke in defence of the Labour Party's actions. He said the Government was attempting to destroy what Liberalism had built up in the past/and which Labour was trying to preserve now. Mr Barnard Baid it was not right to say that Labour had delayed the Bill, because the Bill had not been ready to present before to-day. It would-be most unfair to tic the Bill to the tail of the Finaniie Bill. 1 No Special Committee. Mr Forbes said he was unable to say what .day the second reading could be taken. It was not his intention to set up a committee, but those' interested would be given an opportunity to place their views before the Government. He was anxious to get the Bill on the Statute Book, but just as anxious to get the Finance Bill there. ; .., Mr Holland reiterated his opinion that any delay would be the responsibility of the Governmeht. * ; The Bill was read a first time. An Adjustment Court. ' .-J Section 1 of the Bill establishes a Hawke's Bay Adjustment Court, comprising the Chief Justice as president, two members to be appointed by the Governor-General, and two reserve nomi- j nated members, and its purpose will be i to consider the claims of those who, as a result' of the earthquake, suffered per- i sonal loss through the.: loss of docu-j ments or the destruction' of property, i and to take such steps* as is thought desirable to re-establish the rights and liabilities of clain'rints and place them ,as far as possi! in the position in which they were jefore the disaster. The Court is empowered also tov consider applications for relief from obligations and encumbrances which- as ; a result of the earthquake have caused - hardship, taking into account themerits of each side of the case and making an. order by variation or amendment as it thinks fit. , , . While any proceedings are pending in i 'the Court, it is unlawful, unless a month 'b notice is given in writing, to execute' any civil judgment, to,* seize, or sell' property by distress for rent,' to exercise the power of sale given by a mortgage or other agreement, to, l reenter into possession, to exercise the power ,of rescission over a. contract, or to file a petition'in bankruptcy or,.in the case of a company, a-petition, for. wind-ing-up. Those who might have by the exercise of &ny of these powers' after the earthquake and before, tho passage of,-the Act may apply to the Court, and the Court may reopen, the case with a View, if it thinks fit, of reestablishing them as nearly as upon their former basis, providing always that application' is mad® withw three months of the completion of the. action. If action is taken after' tho--passage of the Act, • one*J>iQixth's grace is allpwed the applicant.; ( Special eqnitable jurisdiction is given ; the Court, which is empowered to-de-cide upofc a majority decision, thejsasting vote of the presidents® the-event •of an, • equal -,iUvig»i£ : ipf' 'opinion. ,-The President may,, ties consent, adjudicate upon - ticular case. No fees are payable w>--: specting an;y matter before- theHOwftij:: which may sit in Chambers,' take ®W|.j dence in-the or dinary way, and prohibit, I if it fit, publication of xts"*j>rov ceedingß. Only in special arecosts to be -Any Court other, than the Court may stay proceedings; pending; tho decision of tfie Attjwtinflftt' while the Court may refer the cas#\to. a Magistrate for consideration/ /.and# where the parties agree, to aw pertOT in whom they have ling the dispute. These- persons Ts<* appointed, are vested', with"''the;,:poweA'iof the Court .for the purpose' of, the-cwe' under consideration. - i „ ";;l Further machinery clauses protect i the Court f rom any right'of appeal,&ndl extensive provisions are made 1 against contempt ,of. Court on the part ,of:a<ny;,j one jeo'nnected„wsith'a ease, under, alty or*a 'fine .not exceedta# Slower fourteen days' v mini strati va expenses are" tor out of money appropriated by Paxliar ment. .Travelling and„ j expenses are to-' be. met-,by. regulations :to. be*gazetted. * 1 - ~V - The area coming under the junsdic-r tion of 'the Court": embraces' boroughs of Napier,' Hastings W«pawa, and Waipukurau, the town' districts ofTaradate- andsHavelock 3<lort&, and the cpunties of Hawked Bay. and' .Wairoa. v ' Tinancial Proposals, 1 The second■ part'of the.Bill-makes financial provision" for.-,the' rchabilita-' tion of the" area on the lines' of ,-the i statement made■:by the Piime .Minister, oil March' 11th. A total; of £1,#00,000 frill be provided to .meet- the" o£ the situation. Of that. £1,250,000 is to be used in granting assistance to-per-sons who i suffered lops or damage - by; reason of the earthquake,'and £2sftjQQj), is made available *in loans .. to {0691" bodies. Foj' the purpose of making, abch payments, the Minister jfot Finance, may realise reserve -fund .securities. Discretion is given to the' Minister,for granting financial .assistance, which may be made ,by way -of-loan, or. jgjranty or bath. Such loans jnay be made without security' or such' security -as ;the Minister deems fit. A-Hawke's ~, Bay Kehabilitation Committee of five bers to be appointed by the. Minister ,ib to be established to consider applications for assistance, and, "the committee will- make recommendations to- the Minister, If - persons thus assisted should be adjudicated "bankrupt withinfive years of receiving payments under the scheme, the Crown is to have preferential claims to' repayment.'-. The Minister -may waive the, conditions.imposed as,ho thinks fit, and extend the time of repayments. : ~ \ Local bodies may, without -taking a poll'of the ratepayers, borrow moneys' for the purpose .of repairing the earthy quake damage, and such loaiiq may be granted by the State Advances Office ■ out of the account "into which the.&um of £250,000 previously- mentioned is to be paid. The loan may be free, of-in-; . terest for five years. „ The interest rate is four per cont. and the loan -and "interest are to bo repaid by half-yearlyin- • stalments over a.period not exceeding thirty years. The instalments-thus- received shall be credited to the" 1 reserve fund account and: the; interest to;; the ' Consolidated Fund. . , - Insurance .TAX. Section 11., Part HI., deals with the insurance tax and the., insurable - pro? perty tax proposals-concerning 'Which the' Prime Minister recently made . a statement. . The insurance tax, which is required to be paid by every insurance company, Will be assessed 'bli-.tbe. i quarterly totals of amountajof' all conl- - tracts ?or fire- insurance, exclusive 'of h contracts for- reinsurance, and- will, |t e , levied at the rate:of ls 6d per eenfc,',ttf I the amounts ,of such contracts. V"Qtiac* I torly ztturns pt