SOLDIER SETTLERS

Evening Post, Volume CVIII, Issue 99, 23 October 1924, Page 15

SOLDIER SETTLERS

DEBTS TO THE CROWN

WEITTNG OFF -LOSSES,

In the House of Representatives recently Mr: R. Masters (Stratford) drew attention to the fact that Commissioners of Crown Lands were requirisg soldier settlers, or soldier settlers who had abandoned their farms, to sign declarations that they would meet their obligations to the Crown before paying off other creditors. He made representations to the Minister'of Lands (the Hon. A. D. M'Leod) on the matter, and yesterday received a reply as follows:— _ "With reference to the representations that have been made by you regarding declaration asked for by the Commissioner of Crown Lands as to the financial position of those soldiers who give up their farms, I have to advise that a. mortgagor is liable under the personal covenants of his mortgage for any deficiency resulting from the realisation of his security, and before a loss can be definitely written off in accordance with the provisions of the Public 'Revenues Act, the Controller and Audi-tor-General insists upon being furnished with a definite statement as to the means and resources of the defaulting mortgagor. '. ' - "Up till recently, it had been th» practise of the Department to require the Land Board, through the Commissioner, to make a reasonable investigation as to the ability or otherwise of 1 soldiers to make good losses resulting from the realisation of securities,- and the recommendations of the board were in due course approved by the Minister. The Audit Department, however, maintains—and apparently rightly so—that the authority to write off any loss is controlled by the Public Revenues Act and Regulations thereunder, and that the only means by which losses can be definitely written off would be by consent of the_ Controller and AuditorGeneral, with the ratification of Parliament, through the Appropriation Act. >It mm also laid down by the Audit Department that before authority could be issued to write off losses it was necessary to adopt one' or other of the following. courses:— ( (1) Declaration as to financial posi- . tion. ' (2) Investigation by the Polica. (3) Investigation by Crown Solicitor. • ; "Taking aU things into consideration, it .wag ■ considered that less publicity would be _ given to a soldier's affairs by his _ submitting a declaration as to his position.. In cases, however, where it ib fairly evident that fraud has been committed, investigations are made by the Police or the Crown Soliictor. ■*■ "Regarding the complaint that has been made that the form of declaration ties._a man down to the extent that by signing it he would be prevented from paying living and personal accounts, I have to advise that it is intended by the declaration that priority should not be given to unsecured -creditors, over the secured creditor (the Crown) in respect of debts incurred in I connection with the farm.' The term 'unsecured debt' excludes debts of a personal nature, uuch as debts incurred in connection with living expenses while on the farm. ; Audit has laid it down that payment of moneys due to unsecured creditors in connection with a farm shall not be given preference over the> secured creditor (the Crown). "Possibly, Clause 8 of the declaration is^not sufficiently clear so as to exempt debts for living expenses while on the farm, but the form of declaration is sufficiently clear to indicate that a soldier is not prevented from discharging debts incurred subsequent to his leaving the farm from his subsequent earnings. "I may state that it is proposed to introduce legislation shortly enabling the Minister, on the reocmmendation- of the Land Board, to write off losses incurred through realisation of securities, but it must necessarily follow tlint a thorough investigation must be made into the man's affairs before a Land Board can submit a recommendation. This is only "business, and the State must be assured that losses are genuine."