PARLIAMENT IN SESSION

Dominion, Volume 27, Issue 70, 15 December 1933, Page 12

PARLIAMENT IN SESSION

Findings of Public Accounts Committee

NATIVE AFFAIRS ADMINISTRATION Appointment of Commission of Inquiry Recommended ' Conclusions arrived at by the Public/Accounts Committee as a result of consideration given to the Controller and AuditoiGeneral’s annual report were submitted to the House of Representatives yesterday afternoon. Discussion on these was held over until the evening to enable copies of the report to be printed and circulated to members. Evidence given before the committee during its two days* inquiry was also tabled. Urgency was taken by the Prime Minister, Rt. Hon. G. W. Forbes, for the debate on the committee’s findings. . , , The view was taken by the committee that the prominence given to the Auditor-General’s report had created an erroneous impression in respect to more or less minor matters of a technical nature. It l expressed the view that the public accounts represented a true -and correct position' of -the financial administration of the ■ Dominion. The committee felt that efforts should be made by the departments concerned to reach an agreement as to the accountancy practice to be adopted in the cases referred to in the AuditorGeneral’s report. ... In dealing with the alleged irregularities in- the administration of the Native Affairs Department, the committee recommended that a commission be appointed to investigate not only matters arising out of the report of the Auditor-General, but the whole of the administration of Native affairs, especially in regard to the development of Native land and the administration of the estates of Maori people. . '. Two Bills were introduced by Governor-General’s Message at the commencement of the afternoon sitting. They were the Mortgagors and Tenants Relief Bill consolidating the existing legislation, and a Rating Amendment Bill giving legislative effect to the recommendations of the committee which recently investigated rating on Native lands. This report was also tabled in the House . yesterday. Eleven clauses of the Finance Bill were put through committee in the afternoon.

POOLING SCHEME Mortgage Relief Law CONSOLIDATING BILL New Power for the Courts Power for the Court to deal with stock mortgages tn cases of disagreement by compelling the mortgagor and • the mortgagee,to enter into a pooling scheme is the 7 principal new feature in the Mortgagors and Tenants Relief Bill, a. measure consolidating the relief legislation passed since 1931, which . was introduced into the House of Representatives yesterday, read a second time pro forma, and referred to the Statutes Revision Committee. Briefly the clause provides that upon service on the stock mortgagee of a copy of the mortgagor’s application for relief in respect of the land mortgage . the stock , mortgagee shall rule off his account with the mortgagor (referred to as the No. 1 account and shall forthwith open a new account (known as , the No. 2 account). Thereafter all moneys received by the stock mortgagee on account! of the mortgagor shall be credited'to the No. 2 account and held in trust for disposal as provided in the Bill subject to any agreement that may be made between the parties. The following are to be first charges on the No. 2 account in priority to other payments (a) Current advances made by the stock mortgagee with. interest at current rates for farming or living expenses and for the of stock, etc. (b) Current interest on the No. 1 r account at a rate agreed upon by the parties or fixed by the Court. Disposal of Balance. The balance in the No. 2 account after the payment of these first charges is to be applied, after the payment Of rates and taxes owing, in. such a manner as the Court thinks fit toward the payment of principal and interest owing to the land mortgagee and the stock mortgagee and.of any other debts whether secured or unsecured.

religious, charitable, or educational bodies, it is made unlawful for the mortgagee to sue in court for any of the principal or interest due under the mortgage except where the property is being Used for personal profit. The court is given power to discharge or vary orders for relief. To the section of the Act defining the jurisdiction of the Supreme and Magistrate’s Courts in the administration of the Act a clause is added- empowering the Governor-General-in-Council to vary this jurisdiction where it is considered desirable. The Act is made applicable to the exercise by a guarantor or indemnified person of his rights against a mortgagor or lessee. Finally, powers are given for the granting of relief voluntarily by any mortgagee or lessor. TRADE AGREEMENT Belgium and New Zealand UPPER HOUSE APPROVAL The Trade Arrangement (New Zealand and Belgium) Ratification Bill, designed to foster reciprocal trade between the two countries in a number of specific commodities, was put through all stages and passed by the Legislative Council yesterday afternoon. In moving the second reading of the Bill, the Hon. R. Masters said that although it had only been placed in the hands of the members of the Council half an hour previously, he would ask the Council to pass it through all stages that afternoon as the Belgian Government was desirous of ratifying the agreement on Friday. During his visit to London, the Minister said, he had the opportunity of negotiating the agreement with representatives of the Belgian Government, and he would like to put on record his appreciation of the manner in which' he was met in connection with it. In view of the surplus of primary produce On the British market, it was highly desirable that New Zealand' should extend her operations so far as the possibility of making agreements with other countries was concerned. Whereas 93 per cent, of New Zealand’s exports were to Great Britain and her possessions, 6 per cent only going to foreign countries, in Australia 62 per cent, went to Great Britain or her possessions and 38 per cent, to foreign countries. He hoped the agreement would be the means of further negotiation between Belgium and New Zealand. There was no reason, except perhaps lack of initiative, why New Zealand should not be doing a bigger trade. The Hon. J. A. Hanan said he believed it was in the interests of all countries that international trade should be restored. Tariff barriers and restrictions upon trade were the cause, of much of the world’s troubles to-day. IMMIGRATION LAW Restrictions Maintained The Immigration Restriction Amendment Bill passed through all stages In the Legislative Council yesterday afternoon. The Bill provides for the continuance until December 31, 1935, of the Immigration Restriction Amendment Act,* 1931, which would Otherwise expire on December 31 next. The Hon. Sir William Hall-Jones said he Was surprised to see that New Zealand had actually lost population during the past two years. He wondered whether the restrictions should be kept in force for two years. He could never get out of Ids mind the fact that half of the population of the world was domiciled in Asia. Great things had yet to happen in China and he believed it would pay this country well to send a representative into some of the Eastern countries to see if reciprocal trade could be developed. He would like to see New Zealand’s population increase, not decrease. The Hon. R. Masters said there was a serious aspect so far as New Zealand’s population was concerned. In 1036 it was estimated- there would be 6200 fewer children In the schools than there were to-day, which showed that the population of the country was decreasing. BILLS BEFORE COUNCIL The Legislative Council yesterday afternoon passed the following Bills: The Trade Arrangement (New Zealand and Belgium) Ratification Bill, the Immigration Restriction Bill, the Companies Bill, the Harbours Amendment Bill, and the Trustees Amendment Bill,

Provision is made for the application of the proceeds of a previous year’s farming operations received during the current pooling year. The value of any proceeds of the current year's farming operations which have not been disposed of at the end of the pooling year are also to be taken Into account in arriving at the distributable balance in the No. 2 account. Provision Is: made for an adjustment on account of any diminution or increase in stock during the currency of the pooling year. . • A memorandum on the Bill says “it is considered beyond dispute that the stock mortgagee Is entitled before any other disbursements are made to recoup himself out of the proceeds for the current year for any advances made by him during the year and for a reasonable rate of interest on them. It is considered that the stock mortgagee is entitled before anything is paid to the land mortgagee to current Interest at a reasonable rate on the No. 1 account Or oh the value of the stock, whichever is the smaller. “The argument has been advanced that If the stock mortgagee sold up under his mortgage the mortgagor would have to stock up afresh, for which he would be obliged to pay the ruling rate of interest." Further, It is stated that “while the land mortgagee has a practically Indestructible security, the stock mortgagee’s security Is not so safe, and he runs the risk of losses due to drought, disease, and other mishaps. For these reasons it is regarded as only just and equitable that the stock mortgagee should have a prior right to current interest on the value of his security.” Rights of Creditors. Another new elapse limits the rights of creditors to proceed with any execution or other process by way of bankruptcy proceedings which would have the effect of vitiating any pooling scheme'or other arrangement made for relief. The limitations apply while an application for relief is pending or in order for relief or a pooling scheme is In force. The other new clauses do not affect the basic principle of the Act, but are considered necessary to correct various anomalies which have been discovered since the last amendment of the original Act. A mortgagor who has received relief is. given power to apply to the court for further relief, but no such application is to be made after the expiration of the period for which relief has previously been granted except by leave of the court. In cases where property is owned by