MORTGAGE PLAN

Evening Post, Volume CXXII, Issue 13, 15 July 1936, Page 9

MORTGAGE PLAN

GOVERNMENT POLICY

ADJUSTMENT ALL ROUND

In view of the close relationship ot guaranteed prices and mortgages under the Government's policy, one of the first measures that will receive the attention of Parliament when the session is resumed next week will be a Bill to provide for the readjustment of all mortgages. • ,'■ ■ In an interview, the Prime Minister (the Rt. Hon. M. J. Savage) stated that it was the Government's intention that the proposed legislation should deal with all mortgages, whether they applied to dairy farms or not. It was the Government's desire to have the legislation passed as soon' as possible, as guaranteed prices for dairy produce would operate from August 1. The mortgage adjustment would complete the picture, for time being, at any rate, as far as "the dairy farmer was concerned. PRODUCTION COSTS: LAND VALUES. "The dairy farmer is not yet out of his difficulties, and.our aim is to help him into a position of security," said Mr. Savage. "The first step has already been taken. By making provision for. a guaranteed price we are providing him with a stabilised income, so that he will have no need to worry about overseas market fluctuations during-the course of a season. As far as the price is concerned, he will know definitely where he stands. The other point to be considered is a proper balance between production prices and land values. In the past, land values have risen, with production prices, but they have not fallen in sympathy, with the result that when prices are low the farmer has to struggle against high capital costs. We are giving the dairy farmer a stabilised income and we. aim also at providing him with stable land values. In doing that we are not robbing anyone. No mortgagee who holds a farm mortgage can hope to get out of that mortgage more than the land can produce. If we base mortgages on the guaranteed price, the result generally will be justice to all parties. Occasional anomalies may arise, but they can be attended to in due course." Activity in the farm property market demonstrated the necessity for Government intervention, said Mr. Savage. The Government was paying a guaranteed price to assist the man who worked his land, not the man who sold his land purely for the sake of selling it. The only way to cope with the position would be through legislation imposing a higher charge on the transfer of farming land. The Government would see to it that all necessary powers were used to prevent the guaranteed price from being manipulated for the benefit of land speculators. At times it was necessary for a man to sell his land, and that man would not be penalised, but the man who tried to capitalise on the guaranteed price without working for his money would not be allowed to get away with it. LONDON BUTTER PRICE. The Prime Minister said that some people appeared to think that because butter was bringing 114s per cwt in London-at present the Government might be placed in an awkward position. Nothing could be further from the truth. The Government's' policy had been settled, and the higher the price went in London the better the Government would be pleased. The dairy farmer had nothing to worry about on that score.