MORTGAGE BURDEN

Evening Post, Volume CXII, Issue 33, 9 February 1927, Page 10

MORTGAGE BURDEN

REUEF FOR SETTLERS

DIFFICULTIES IN HAURAKI

. Concessions byway of remission of rent and arrears, and, in some cases, cancellation of arrears, are recommended by a committee set up by the Government to inquire into the difficulties being experienced by the settlers in the Patetonga riding on the Hauraki Plains. :....-.■■-

"The problem is an economic one," states the committee in recommending a scheme of improvement for the consideration of engineers in connection with roading and drainage." . "Can the country concerned stand the cost? If not, is it a fair thirig to ask the Dominion as a whole to shoulder a , large proportion of this cost!"/

The Minister of Lands (the Hon. A. D. M'Leod), while agreeing to have the committee's proposals investigated, cannot see how an expenditure of £.150,000 can be economically ircurred at present. ,

With regard to the position of sottiers who are heavily involved because of mortgages, the . cominitteo, . while agreeing that it is a delicate matter to interfere in any way with mortgages, considers that it would be justifiable, where amounts are notoriously too high, for the Department to incnm the mortgagees that reductions tc reasonable amounts must be mads, otherwise any benefits that the settlers themselves would derive from any reductions in upsets and rentals would practically be transferred to the mortgagee. The Minister believes that it is very doubtful whether mortgagees will agree to reduce their mortgages although the reduction recommended appear to be reasonable. Mr. M'Leod indicates his preparedness to introduce legislation authorising reductions in the value of certain land subject to flooding from £6 10s to £2 an. acre, and suggests that mortgagees should be invited to consider making, adjustments where security for loans is impaired. The matter is one for negotiation, but any reduction in. value should not necessarily be subject to reduction in encumbrance.