DAMAGED FARM LANDS

Evening Post, Volume CXXV, Issue 144, 21 June 1938, Page 11

DAMAGED FARM LANDS

APPEAL BY MINISTER

MORTGAGEES' PART

REHABILITATION WORK

In making an appeal to mortgagees to co-operate in the rehabilitation of farm lands involved in the recent I Hawke's Bay floods, the Minister of Finance (the Hon. W. Nash) pointed lout last evening that the assistance given to the settlers by the Government would be of little benefit unless mortgagees were prepared to assure the farmers concerned that no action would be taken to dispossess them if revenue were insufficient in the meantime to enable interest to be paid in full.

Mr. Nash said that the Government was concerned as to the position which might arise in the case of some of the settlers who were being assisted by the Government to rehabilitate their properties after the disastrous floods which had occurred in the Hawke's Bay district recently. The Government was making the necessary finance available on easy terms, and was also providing substantial assistance in necessitous cases in the form of free labour for moving houses, removing debris, repairing or re-erecting fences, and sowing grass-seed on silted areas. LOANS WITHOUT INTEREST. In most cases, the loans would be free of interest or principal repayments until the property was back to a reasonable revenue-producing basis, but such assistance would be of little benefit to the farmer unless mortgagees were prepared to co-operate by assuring the settlers concerned that no action would be taken to dispossess them of their properties if, for a period of, say, three years, the revenue were insufficient to enable interest to be paid in full. Mortgagees-granting con.cessions of this nature would, of course, be entitled to ask that the farmers make reasonable efforts to meet their obligations according to the income available, and would be perfectly entitled to exercise their rights should the farmers not carry out their part of the moral contract.

"It is recognised," said Mr. Nash, "that the farms in many cases will not be fully restored as economic units for several years, and every inducement must be given to the individual to bring back the property to full production at the earliest possible moment. It is hoped, therefore, that the mortgagees will extend to the settlers a generous measure of assistance on the lines indicated. PROTECTIVE MEASURES? "The Government is glad to learn that in some cases the mortgagees have already granted Concessions to settlers whose properties were flooded, but there are unfortunately cases where sftch sympathetic treatment has not been given. The mortgage relief legislation does not now operate in favour of the mortgagor, and the Government has no desire to reintroduce any such protective measures, but it would be failing in duty if it did not take appropriate steps to ensure that, after a disaster such as occurred in Hawke's Bay, the farmer was given a reasonable opportunity to reinstate- himself. If any instances should occur of harsh or unreasonable j action on behalf of mortgagees, the Government would not hesitate to publish the full facts.

"It is hoped, however," continued Mr. Nash, "that such difficulties will not arise, and that all parties will cooperate and thus ensure, that these unfortunate people will receive the maximum of assistance in rehabilitating themselves."