A CANDID FRIEND

Press, Volume LXXI, Issue 21436, 30 March 1935, Page 12

A CANDID FRIEND

! MR BURNETT SPEAKS HIS MIND . i i FEAR OF LAND BOOM j OPPOSITION TO MORTGAGORS j ADJUSTMENT BILL j —.——- [From Our Parliamentary Keparterj WELLINGTON, March 29. Stating that he would rather resign his seat than be associated with another measure that would cause a second land boom in the Dominion, Mr T. D. Burnett (C., Temuka) told the House of Representatives early this morning why he objected so strongly to the Rural Mortgagors Final Adjustment Bill. "At the present time, and until we reach a completely socialist state," said Mr Burnett, "there is no question that the State and all industry, primary and secondary, are dependent on the saving and lending habits of the people, and this measure will undoubtedly have a blanketing effect on both. There is no doubt that primary industry is in want of new money, but can anyone imagine that this measure, having for its objective the control of money lent to farmers, is going to be an inducement for fresh money to flow into the channels of the farming industry? One can take for an illustration a company that is financing primary producers. It may have to lend in the dead season of the year some hundreds of pounds to carry a man on until returns begin to come in in the summer producing months. Do you think the company will continue to advance ,£SOO or £IOOO of fresh money when, by the passing of this bill, it is losing a very large control over it'.'"

I Advice for Mr (~'oates j Mr Burnett said lie wished the Government had seen its course clear to defer consideration of the bill until next session. The Minister for Finance would have done well had he followed the precedent of Sir George Grey (when he set up the constitution of the country) in retiring to the; centre of the North Island with the bill for a month or so, which would have then come down in a more practical form, and more in keeping with the needs of all sections of the community. The Government, was setting up what practically meant a constitutional departure, in as much as the estate of a man presumably solvent was to be under the control and dictation of a court, a trustee, and a supervisor, and the mortgagor in possession was to be left there in order to find out the basic value and earning capacity of that farm. Was that practicable? "Supervisor control is entirely different, and 1 am speaking now as a practical man, and as one who knows Canterbury conditions and the ways of running sheep stations and farms," .said Mr Burnett. "The setting up of supervisor control is an implication that the controlling authority has lost | faith in that man. Budgetary control is not the same, and with a tactful man in control it can be completely successful, but this new departure of trusteeship and supervision in order to find out the earning capacity and basic value of a farm is foredoomed to failure, and does not appeal to practical men who know the conditions, at all events in Canterbury. However keen our desire to help the man on the land, in this measure, we are only dealing with effects, not causes." Cause of the Troubles The root cause of the troubles was mad speculation in land, said Mr Burnett, and the bill, instead of discouraging land speculation, did not provide one control feature to discourage further land speculation, and prevent another disastrousboom. The root causes of the mess I this country had got itself into were j in the first place the ballot system, i in the next place cheap money, in the next easy credit, and in the next competing firms eager for business trying to outdo one another and; putting men into farm properties : with insufficient capital. Now the ; country was asking the Government j to clean up the mess, but it was ; not taking any steps to prevent an- 1 other boom, and a consequent i slump, perhaps even worse than this j one. i

"Rather than have to go through my experience of the last two or three years again, hearing tragic tales of farmers who have been overwhelmed with ruin, I would put in my resignation Mr Speaker, ana get back to my mountain home as fast as possible, because I do not want to be associated with another measure that will cause another land boom in this country, and continue the tragedy we are now passing through," said Mr Burnett. "This bill is not a national measure. It deals only with the rural side of the problem, but in every city and in every country town there is tragedy in workers' homes and little store keepers' businesses which have not been looked to. So I cannot see my way to support this measure, and whether as a result I lose my farmer friends or not, I must pursue my plan."