MORTGAGE DEBTS

Evening Post, Volume CXXII, Issue 68, 17 September 1936, Page 7

MORTGAGE DEBTS

PROGRESS OF BILL

ADJUSTMENT COMMISSIONS

FITNESS OF MEMBERS

In order to allow the Minister of Finance to frame amendments, the House of Representatives last evening reported progress on the Mortgagors and . Lessees Rehabilitation Bill after the short title and two machinery clauses had been agreed to. When the amendments are prepared the Bill is to be reprinted, the Minister explaining that this would enable members to follow the Government's intentions more clearly. The Leader of the Opposition (the Rt. Hon. G. W. Forbes) asked whether any provision was being made to prevent land, after an adjustment had been made, getting back into its old mortgage position. After rehabilitation, there would' be a certain equity, and he asked what steps were being taken in connection with that equity. The Hon. A. Hamilton (National, Wallace) made a plea for the retention of the present members of the adjustment commissions. They had spent time becoming accustomed to the work and in securing knowledge of farming finance and mortgage adjustments. He suggested that the present members should be reappointed wherever possible. The Minister of Finance (the Hon. W. Nash): All good men will be reappointed. Mr. Hamilton: It's a matter of opinion as to who are good men. SALE OF PUBLIC PROPERTY. Mr. Hamilton questioned the wisdom of selling public property by private contract, as the adjustment commissions would be permitted to do, j and suggested that it would be better in the public interest to have public sale. Mr. W. A. Bodkin (National, Central Otago) supported the plea for the retention of the members of the present tribunals. The Court of Review, he said, would represent the strength or weakness of the legislation, and the public would be reassured if the constitution of the tribunals was unchanged. If the farming community was to be rehabilitated, security must be inspired in rural securities. Mr. W. J. Poison (National. Stratford) asked whether, when a flat portion of an original mortgage was refinanced it would become a second mortgage. If that were so, it would be alarming. Mr. Nash said that an amendment would be made to ensure that a mortgagor who had had some benefit conferred on him by the mortgagee would not be able to take advantage of that benefit by an early sale. To the extent that they possessed the experience and the judicial mind, the present members of the adjustment commissions would be reappointed. Dealing with private sales, he pointed out that varying circumstances would affect sales of properties. "We propose to give every discretion to the Court," said the Minister. The Court would be given power to do anything that it thought would give purpose to the Bill. EQUITY IN THE LAND. The Rt. Hon. J. G. Coates (National, Kaipara) said that it was evidently the intention of the Government to give the farmer an equity. That equity must be in the land, not in stock, as had been suggested by a Government speaker. He believed that the farmer would be worse off under this Bill than under the budgetary system. "If he thinks that this is going to be some protection for him," said Mr. Coates, "he will be sadly disappointed." Mr.' Bodkin thought it would be wrong to put the whole of the burden on the mortgagee in the rehabilitation of the farmer. The Government should be prepared to carry its share. There were many mortgagees who would be prepared to lower the rates of interest so long as their capital was preserved. The future should hold out some hope for the mortgagee as well as the mortgagor.

Mr. R. A. Wright (Independent, Wellington Suburbs) asked what valuation was to be used and how it was to be arrived at.

Mr. Nash said the onus was on the adjustment commissions to interpret the Act in the best way in this matter.

Progress was reported and the House rose at 9.30 p.m.