"JUSTICE CAN BE DONE"

Evening Post, Issue 29, 4 February 1935, Page 13

"JUSTICE CAN BE DONE"

ALTERNATIVE PLAN

RELIEF LEGISLATION

"It will be understood from the above that the committee regards; the rehabilitation proposals. as unsound, unjust,'and dangerous. . It believes that justice can be done to all.parties concerned," including the farmer mortgagor, without wholesale repudiation of contracts, and without the unjustdiscrimination against one class of the community—the farmers' creditors. "Again the' problem resolves itself into- two distinct divisions-^State mortgages and private mortgages. The committee makes..the following constructive suggestions in lieu-of the Minister's proposals:— \ ' STATE MORTGAGES. "So far as mortgagors to the various State departments are concerned, the committee has ••• suggested, in this memorandum; the ' creation of boards with full power to effect settlement with these mortgagors. Such "settlement would be at the expense of'the whole community, and would'not prejudicially affect any particular section. PRIVATE MORTGAGES. "It is, in the opinion of the committee, common ground that the- present relief legislation is not altogether satisfactory. From the viewpoint of the mortgagor, the relief afforded, is merely temporary by way of suspending payments with a power of writingoff, limited to arrears of . interest. Mortgagees,'on the other hand, complain, and with some reason, that there is no uniformity of practice. Cases apparently, similar are "dealt with in varying ways in different districts. Much as the committee dislikes any proposal which validates repudiation of a contract, it recognises that there is some necessity for amendment of the present legislation. It urges that,- having instituted a system of dealing with disputes between mortgagors and. mortgagees, . the Government should, if that system has , proved somewhat unsatisfactory, endeavour to improve ' upon it rather than to scrap it and substitute an entirely new and untried system. . . . "The committee therefore suggests in respect of private mortgages, as follows:— "(a) That orders under the present legislation may be made to be operative until December 31, 1939. ■ (The present Act expires on December 31, 1935, and orders may be made under it having a currency of two years.), The proposal of the committee therefore means an extension of two years.

"(b) That the existing Adjustment Commissions be reconstituted on the lines of the proposed special Court of Review, that is, an independent chairman and two associate members— one representing mortgagors'' interests generally, and one representing mortgagees generally—thus increasing public confidence in these tribunals.

"(c) That it be laid down distinctly that the Judge (or Magistrate) is bound to hear and consider evidence offered by either party which was not available at the hearing before the Commission, and if necessary,refer th<* case back to the Commission;

"(d) That a full right of appeal to the Court of Appeal' be conferred. This is essential if public confidence in mortgage lending is to be restored.

"The committee had hoped that before completing the, preparation 'of this statement, advance copies of the legislation would have been available to it. Unfortunately,,such drafts have not-been available, and the foregoing comments are therefore necessarily. based1 on the information given in the pamphlet by the Minister of Finance, together with such further information as was.afforded the committee in its conferences with the Minister and hi 3 staff. . ,

"The committee urges that the Minister circulate the -draft of the proposed legislation at the. earliest possible moment, to give ample time for public consideration before its introduction to Parliament. •■..

"The committee expresses its willing" ness to co-operate with the Government in further consideration of alternative measures for the solution of the admittedly difficult '_ problem^ of. rural ■ finance."