POINTS OF PARLIAMENT

Evening Star, Issue 15916, 23 September 1915, Page 3

POINTS OF PARLIAMENT

WAR AND DEBTS. EXTENSION OF MORTGAGES. PREVENTION OF ABUSES. [From Our Parliamentary Reporter.] WELLINGTON, September 23. The House of Representatives dealt yesterday afternoon with policy Bills. Tlie most interesting measure was the Mortgages Extension Bill tHon. Mr Heraman). The Attorney-General explained the efforts of tho Government to meet a difficult position, and mentioned , that some people had taken advantage of the provisions of the principal Act of last year, and had avoided the discharge of their obligations in respect of mortgages. The Hutt Road Bill (Hon. Mr Herries), which apportions among local bodies concerned the cost of construction of the Hutt road, which has caused much controversy in recent years, was put through the committee stagt after a long discussion by Wellington members. At a later stage the third reading was affirmed. MORTGAGES EXTENSION. The Mortgages Extension Amendment Bill was also considered in committee. The Hon. Mr Herdmau said that a great deal of pressure had l been brought to bear upon the Government to repeal the Mortgages Extension Act altogether, but that would be unfair and unjust, and would lead to a great deal' of trouble. Some people thought that instead of the mortgagee applying to the court for relief or for power to exercise his rights under tho original mortgage, the initiative should be taken away from him, and the mortgagor instead be in the position of applying for relief. Since the original Act had been in operation there had come to the knowledge of the Government that some people who had money and could well pay off the debt had taken advantage of the provisions of the Bill, and instead of doing so, had obtained relief and lent their money at a high rate of interest. This Bill would prevent anyone doing that in future. Sometimes, continued the Minister, mortgagors got into arrears with their principals and did not pay other dues, insurance premiums, upkeep, and interest; and under the principal Act so long as a mortgagor paid his interest the mortgagee could not do anything, and the Court had no power to order him to fulfil his covenant obligations. It was proposed in this Bill to give the Court every discretion to empower it to examine every case in which the mortgagee desired to get his money, and to find out if any injustice would be done if an order were made. It could also examine and see if the mortgagor was committing any breach of the terms of the covenant. As the Act was originally drawn up the procedure the mortgagee had to follow was to take out an originating summons. It was now piuposed to simplify the matter, and instead of the originating summons, which was cumbersome, it was now provided in clause 3 of the Bill that application be made to the Court by what was known as a notice of motion. The mortgagee would tile his application and a notice would he gent to the mortgagor, and- a Judge sitting in Chambers would make full investigation. This procedure would be simple and effective, and would avoid the publicity of the Court. A Judge would have full liberty to go into tne whole matter. In some country places it would be difficult to always obtain the services of a Judge, and a new clause would: be inserted in the Bill enabling a registrar in the first instance to take the hearing, but anyone disagreeing with his decision could apply again to a Judge. Mr Herdmtyi said he did not see how any possible injustice could now be none to anyone with the safeguards of this Bill. Replying to a questioner, he -said that the allocation of the cost of the hearing was at the discretion of the Court.

There was a long discussion on the Bill, and very stubborn opposition to its aims.

Ihe Hon. I). Bnddo hoped that members would take care to see that there was no special underlying motive. He was afraid the Minister was considering the specific cases of some people who had seen him, and by so doing was overlooking the interests of the many. The whole business from the beginning had been complicated and made for litigation. Why couldn't they have a simple measure? Mr Payne suspected the intention of the Bill.

Discussion followed on similar lines, and the Minister pointed out (hat the object of the Bill could be accomplished hv the Government, passing an Order in Council and inserting it in the ‘Gazette.’ He had, however, desired to have the matter befoie the House, but if there was objection ho need not go on with it. (Dissent.) Some people were taking advantage of the Act, and it was desirable that a party to a contract should be protected from unfair practices. Ihe Bill would only really affect mortgages entered into before the war broke out. It could be depended upon that any mortgagee lending money at the present time excluded the provisions of the moratorium. F.very lending institution was doing it, Mr Payne again condemned the Bill, which would he only to the interest of the money-lending sharks. Mr Isitt said that while he would like to see the danse providing for higher interest removed, he tl%>ught the Bill generally was a good one. Mr Payne called for a. division on the b rs t clause, with the result that it was retained by 54 votes to 4, the minoritv being Messrs Payne, MTomibs, Webb anil T. A. H. Field.

After further discussion for an lio-i r and a-lialf the Bill was put through its final stages with consequential amendments outlined in the Au-oniey-General's explanatory remarks. OTHER MEASURES.

The Local Railways Amendment Bill, th© Sale of Foods and Drugs Amendment BUI (which provides for the stamping of all imported eggs to distinguish them from fresh eggs), and the Marriage Act Amendment Bill (which, provides that members of the Expeditionary Forces may get married without requiring to reside in any place for three davs as required by the present Jaw) were put through all stages and passed. The House adjourned at 11.40. LEGISLATIVE COUNCIL. Another brief sitting yesterday afternoon. The amendments* made *hy the Elective Chamber in the New Zealand Loans Act Amendment Bill were a creed to. The War Funds Bill was read ;l second time pro forma, and was referred to the Statutes Revision Committee.