POLITICAL NOTES

Press, Volume LXXI, Issue 21400, 16 February 1935, Page 12

POLITICAL NOTES

[From Our Parliamentary Reporter.] WELLINGTON, February 15. Good Progress Made The House of Representatives made good progress to-day with the second reading debate on the Mortgage Corporation of New Zealand Bill. The Minister for Finance (the fit. Hon. J. G. Coates) completed his long explanatory speech. The leader of the Opposition (Mr M. J. Savage), replying, complained that the Government was still shutting its eyes to the benefits of credit expansion. | The Minister for Land: (the Hon. E. A. Ransom) countered with a denunciation of inflation, and several other members on both sides of the House added their views. Greatest interest was centred on the speech of Mr W. J. Poison (G, Stratford), who claims to speak purely from the farmers' standpoint. He promised his vote for the bill, but assured the Government that he would not hesitate to support certain amendments in committee. The House rose at ii.3o p.m., and will resume the debate when it assembles again on Tuesday. Local Body Kates The relationship of the proposed Mortgage Corporation to the payment of local body rates was further explained by the Minister for Finance (the Rt. Hon J. G. Coates) in the House of Representatives today. The Minister made it clear that the corporation would be liable for rates on new mortgages, but the position in relation to existing State mortgages taken over would remain as at present. Mr E. J. Howard (Lab., Christchurch South): Which is very unfair. Mr-Coates: If it were otherwise, th extra charge would fall on the corporation, which would be in no way responsible for the position. The Minister added that it would cost £500,000 a year to meet the charges of local bodies in this direction. Mr W. Nash (Lab., Hutt): That means that thi local bodies are losing £500,000 a year. Mr Coates: Whichever way you may put it. Under the rehabilitation proposals to be submitted to the House next week, the rates would be placed in the first category of liabilities to fall on the receipts of the farmers. Mr Nash: Before interest.' Mr Coates: Alongside interest. Shareholders' Capital The Minister also explained that the introduction of private shareholder capital into the scheme was a method of giving investors a security stronger and more attractive than by any other method. Some had suggested that there should be a State guarantee, but it was not possible for New Zealand if it wished to preserve the value qt existing and 'future securities, to give a general blank guarantee. But bv 'the Crown providing half the capital and putting in reserves Mr Coates believed that it would be possible to borrow money at a/ gutedgod rate, and give borrowers finance ft the cheapest possible rale.' yell-gates of Unemployed Forma) recognition of delegates representing unemployed workers in their representations to employing ! authorities was sought by Mr E. J. Howard (Lab., Christchurch South) m tm urgent question which he adilvcssed to the Acting-Minister tor Employment (the Hon. Sir Alexander Young) in the House of Representatives to-day. Mr Howard said that complaints were constantly being made that job delegates, as soon as thev became active in the interests of the men, were required to stand down for a week or fortnight, and that then they were sent to other jobs. The Minister in reply said that unemployed workers who received work on relief under scheme No. 5 were employees of the local bodies concerned. Job conditions and disputes applied to the relations between the men and the employing bodies, who doubtless followed their normal practice in according recognition to representatives of the men. The board had no authority over local bodies in such a matter. Farmers and the Future "The farming community has been too long chained to vested interests not to desire some form of relief which will give some hope for the future," declared Mr W. J. Poison (C, Stratford) in his speech on the j | Mortgage Corporation Bill in the j j House of Representatives to-day.' "The farmer wants to know when the Government will approve a plan to rid him for ever of complete domination by financial interests." Mortgage Bill Criticising aspects of the Mortgage Corporation Bill, promoted by. the Government he supports, Mr Poison nevertheless announced in the House to-day that he would not deny the measure a second reading. "Are you going to vote for the bill?" asked the Minister for Finance (the Rt. Hon. J. G. Coates) after listening for some time to Mr Poison's views. Mr Poison said he was expressing his opinion as a trustee of the farmers. He had a right to express the official views of the farmers' organisation—views with which he was in thorough agreement. He was just as much the representative of the farmers as was Mr Coates, and he resented any threats from the Minister. Mr Coates: There was no threat. Mr Poison said he would fight against shareholder control as long as he had a voice in the House. He would not make allegiance tc a party superior to every other consideration. Mr Coates: I fail to see how you can support the principle of the bill. Mr Poison: I am going to oppose many things in this bill. I will not deny it a second reading; but in committee I will vote in support of such amendments as I think are desirable.