Move to end Marginal Lands Board welcomed

Press, 2 June 1982, Page 2

Move to end Marginal Lands Board welcomed

PA' Wellington Labour yesterday “cautiously welcomed" the Government announcement that the' Marginal Lands Board will be abolished. Labour's spokesman on agriculture. Sir Basil Arthur, said that the move to have the Rural Banking and Finance Corporation take over the board's role was in line with Labour Party policy. However, Labour also wanted an “inbuilt protection for the role of lender of last resort." “Our plan involves expanding the whole role 1 of the Rural Bank, so that it can operate as a true bank," he said.

“We believe there should be a separate division within the bank to be the lender of last resort." Announcing the winding-up of the board, the Minister "of Lands (Mr Elworthy) said that a structure would be set up in the Rural Bank to take over the role of last-resort lender. “This is part of the 3 per cent savings I am finding for the Lands and Survey Department,” Mr Elworthy said. There would be a reduction in total lending to the farming community, he said. “The Rural Bank will, I presume, have to live within its allocation,” Mr Elworthy said. "But let us remember that Federated Farmers has been asking us to control inflation ... that has been its main request. As part of that request it has. been asking us to cut Government expenditure.”;

Mr Elworthy said that the move had nothing to do with the Fitzgerald 1 land loan affair.

A decision by the board to ' lend money to a Wellington couple, Mr James Fitzgerald and Mrs Audrey Fitzgerald — the son-in-law and’daughter of a Cabinet Minister, Mr Duncan Maclntyre — started a. furor two years ago. One board member, Mr Roly White, resigned in protest,' and a Commission of Inquiry was held. Mr Maclntyre was' found by the inquiry to have been "extremely unwise”<and the

then Lands Minister. Mr V. S. Young, to have been "unwise" in their involvement in the affair. ;

Mr Elworthy said yesterday that the Fitzgerald case was in the past. He had not heard it raised once in discussions leading to the bpard's abolition. The decision was “purely a matter of savings." The Lands Department was aiming at a $1.6 million saving over all as its part of the 3 per cent exercise. Mr Elworthy would not give details of the savings made by abolishing the board, saying these would be made public on Budget night. The Minister said that he was “full of admiration” for the work of the board.

“It has done a good job and played an important role in settling first farmers on difficult country, and developing land that would otherwise have remained unproductive," he said. The acting president of Federated Farmers, Mr Peter Elworthy, said yesterday that the board had served a valuable role in the past, providing funding for development on land that might otherwise remain undeveloped. “The federation considers that provided the Rural Bank can continue to fill the same role, with the same funding, the modified situation is acceptable,” he said.

“The federation has established a special lands subcommittee to examine a number of land-settlement matters, particularly in relation to the future existence apd functioning of the Lands and Survey Department.” A member of the board, Mr G. Kj A. Ferguson, of Waipuna,.on the West Coast, said yesterday that the worst aspect of the disbanding of the board was that the Rural Bank was not going to get the extra money for the type of work carped out by the board, according to “The Press” reporter at Greymouth.

Mr Ferguson said that he had enjoyed his term on the board. He believed that the board had done a big job in assisting,, more than 2000 Many of? these would' inqt be in "farming otherwise

Mr Ferguson said he was hopeful that the Rural Bank would establish a type of appeal similar to that which existed with the board. He thought that any views and suggestions from the board could be offered to the Rural Bank in discussions soon.