Parliament MORTGAGE CORPORATION BILL

Dominion, Volume 28, Issue 122, 16 February 1935, Page 8

Parliament MORTGAGE CORPORATION BILL

Labour Party’s Attitude To Proposals

GOVERNMENT’S EFFORTS TO REHABILITATE FARMERS

Six speakers participated in the second reading debate on the Mortgage Corporation of New Zealand Bill in the House of Representatives yesterday. These included the Leader of the Opposition, Mr. M. J. Savage, who defined the Labour Party s attitude toward the Government’s proposals. He. considered the weakness of the present system was due to the inability of the State lending institutions to utilise by direct means the credit of the State. This, he contended, was also a fundamental weakness of the proposed Mortgage Corporation. Mr. Savage was of opinion that the problems arising out of the present mortgage system could be solved by a readjustment of mortgages under State control and guaranteed prices for products and services. Mr. Savage was followed by the Minister of Lands, Hon. E. A. Ransom, who said the present Bill and the Rural Mortgagors and Tenants Final Adjustment Bill yet to be introduced would go a long way toward rehabilitating .the primary. producers of the Dominion. He challenged the statement that if the Bill became law there would be a flight of capital from the Dominion. He referred to the large amount of money lying in the banks, and suggested that if better investments had been available abroad that money would have gone there years ago. Certain phases of the Bill were criticised by Mr. W. J. Polson (Govt., Stratford). It was essential that the State be behind the bonds issued by the corporation, he said. When it was built up the mutual guarantee fund of £2,500,000 provided by the borrowers would be five times the share capital subscribed by the shareholders, and yet the former were not to have the slightest say in the control of an organisation in which they were vitally interested. . The House adjourned at 5.20 p.m. until Tuesday afternoon, when the debate will be resumed.