FARMERS’ PROBLEM

Evening Star, Issue 20917, 7 October 1931, Page 6

FARMERS’ PROBLEM

POSTPONED INTEREST PROPOSALS £250,000 RELIEF IN RATES While it is not considered advisable to make an arbitrary reduction in interest charges it is considered that tho position can best bo met by some extension of emergency [lowers. The Government is of opinion that the provisions of tho Mortgagors’ Relief Act should he enlarged. Justice could bo more fully done by this means than by a fixed reduction in interest which would work out inequitably, sometimes granting insufficient relief and sometimes too much. It is therefore proposed to enlarge the powers of the court so that it may not merely postpone payment of interest for twelve months, but may make such remission, reduction, or postponement of interest on existing mortgages as seems just and equitable. Moreover, where the mortgagee is tho vendor for unpaid purchase money, tho court may make reduction or postponement of principal or interest to a mortgagor. The court will also ho empowered to authorise a fair distribution between the mortgagor, mortgagee, and tho holder of tho chattel securities of the proceeds of the farm to enable the best to be done for all parties, and to ensure that production will bo carried on.

H also appears expedient, in view of tho rapidly changing circumstances, that the legislation should enable the powers of the court to bo extended by Order in Council as circumstances may render necessary. REDUCTION IN RATES.

Apart from interest, the principal items in tho farmers’ fixed charges are rates and taxes. Rates in particular are a heavy burden under present conditions. These rates have been heavily increased by the cost of road improvements and maintenance through tho iiso of tlio roads by motor traffic. Qnjtc re tly the Main Highways Board increased tho subsidy to local bodies for maintenance of highways from a basis of £2 for £1 to £3 for 1 as from April 1 last, thereby assuming a greater proportion of tho burden of highways. An examination of tho finances of tho highways revenue fund shows that, after providing for all tho normal requirements for maintenance, interest, sinking fund, and the subsidies on rates to local authorities, the probable revenue receipts for the year from tho existing taxes and license fees, etc., together with tho balance carried forward on April 1 last, will provide a balance at tho end of the year of not less than 11250,000. This balance, or tho greater part of it, the Highways Board would normally have transferred to highways construction, but under present circumstances it is considered that it would be better to somewhat curtail construction work for this year and apply the £250,000 by way of a special subsidy to rural local authorities in relief of the existing burden of rates. The basis on which the amount will be distributed has not yet been finalised, but will be announced later, when tho necessary empowering legislation is brought down. , . These measures will give somo relief from the burden of rates. As a means of providing more permanent and inrrcaehiug relief the Government proposes to proceed with the inquiry by Royal Commission into tho possibilities of national economy through the amalgamation of local authorities and a general overhaul and reorganisation of tho whole system of local government.