AID FOR FARMER

Dominion, Volume 26, Issue 70, 15 December 1932, Page 10

AID FOR FARMER

Mr. Wilkinson’s Scheme PLANS MADE PUBLIC Relieving Interest Burden By Telegraph.—Press Association. New Plymouth, Dec. 14. A scheme to aid farmers in their difficulty formulated by Mr. C. A. Wilkinson, M.P. for Egmont, was made public at New Plymouth to-night. In brief, it is that all farm lands in New Zealand should be entirely freed from mortgage liability, both capital and interest, and that henceforth no mortgage liability should be allowed on farm land. Also that in view of the freeing of land from all mortgage debt all farm land over and above what is considered a reasonable area should be resumed by the State without payment for further settlement purposes, and land thus resumed by the Crown should be acquired on the basis of the reduction made by the abolition of the mortgage debt on the land concerned. “These drastic steps,” said Mr. Wilkinson, “would place primary producers in a position to compete with any country in the world and do more to rehabilitate the country than any other proposal yet suggested. The main feature of my scheme is that I propose to bring money values into line with farm production values. After arriving at the true value of the mortgages the interest payments should be made on a 3 per cent, basis, and to provide for fluctuations up or down on an index system, according to export values. I propose that all existing farm mortgages should be reduced in value commensurate with the present-day export prices. All farm mortgage contracts made before September 30. 1929, and still outstanding, should have • their value based on the average of export prices from September 30. 1925, to September 30, 1929, and be reduced proportionately, according to export values existing between October 1, 1930, and March 31, 1933. “All outstanding mortgages entered into between October 1, 1929, and September 30, 1930, should be calculated in similar manner, and in subsequent years I propose the State should take over the whole liability under the mortgages, as adjusted, by issuing State bonds payable to the bearer and saleable on stock exchanges. I estimate this liability would not, under any circumstances, exceed £200,000,000, possibly considerably less, which would entail a burden of interest payments not exceeding £6,000.000 per annum. “In order to provide funds for the payment of such an annual amount, I propose to impose income tax upon the net profit of all farmers, or a sales tax on all produce or stock sold from farms or income tax on the gross receipts from farms, the balance to be made up by‘general taxation.

“I am of opinion nothing short of revolutionary measures will do what is required,” continued Mr. Wilkinson. “It is agreed the greatest burden upon the primary producer is interest, rent and taxation.”

A representative meeting held tonight set up a committee to investigate the scheme.