MORTGAGE BILL AMENDMENTS

Greymouth Evening Star, 21 March 1935, Page 5

MORTGAGE BILL AMENDMENTS

DELAY IN DRAFTING

ANOTHER HOLD-UP ?

[special to “stab.”]

WELLINGTON, March 20. It is practically certain. _ that the amendments Mr Coates is having drafted to the Rural Mortgagors Final Adjustment Bill in substitution for the abandoned 20 per cent, equity provision will not be available for submission to the House to-morrow (Thursday). In any case, so it was authoritatively stated to-night, the new provisions will not be introduced or indicated to the House before their reference to a further caucus of the Coalition. The possibility of another hold-up over this measure cannot be overlooked since it has been made abundantly clear by a section of the Government’s most prominent supporters that any proposal which will tend to make the position of the mortgagee untenable will be fought to the bitter end. As the session cannot possibly end on Saturday, as planned, the Government is now working toward the conclusion of business on Wednesday or Thursday next week. The amendments the Legislative Council will make to the Mortgage Corporation Bill will require consideration by the House, and the Upper Chamber will not rush through the Mortgagors Final Adjustment Bill when it, finally receives Jit* If the next session of Parliament is postponed until August, as some think it will be, the Government will have to pass an Appropriation Bill to obtain supply past the normal period, June, to which it is covered by statutory provisions. The general feeling is that with the general election to be held at the end of the year, Parliament’s final session is likely to open at the end of June, or early in July. UNEXPECTED PROGRESS’.

WELLINGTON, - March 21.

The freshly drafted amendments to the twenty per cent equity section of • the Rural Mortgagors Final Adjustment Bill which were not expected to be ready until to-morrow, were placed before a caucus of the Government Party, which deliberated on them for three hours to-day. Mr Forbes stated subsequently it was hoped to complete the second reading stage of the Bill to-night, and then make a. start with the committee stages.

DEBATE IN HOUSE. - WELLINGTON, March 20. The second, reading of the debate on the Rural Mortgagors Bill was resumed this afternoon. Mr Jull asked the Minister to withdraw Part five of the Bill. It would not come into operation for five years, and there was plenty of time to make provisions contained in that part if necessary. That part was fraught with the greatest danger and he thought it would .be a source of trouble between the .mortgagee and mortgagor. Mr Barnard said he was not at all surprised that some members of the Coalition Party had objections to Part Five of the Bill, and he congratulated Mr Jull on voicing his definite objections to that part. | He contended that when the equity clause was withdrawn, nr amended, there was almost nothing left in the Bill. Mr Wilkinson said the Bill was a step in the right direction and he congratulated the Minister on trying to meet the position in a more liberal way than tlte members of his Party were evidently willing- to go. Nevertheless, he thought the Bill would still be ot vital assistance to the farmer ■who was in dilliculty. Farmers wanted the immediate writing off of lost capital, and also wanted a low rate of interest to tide them over the present crisis. However, they did not want to wait five years. He suggested the term of budgetary control should be reduced to two years. The Bill also gave farmers security of tenure and enabled them to remain on farms in the hope that better times would come along. He suggested that farmers should be provided with legal advice free of charge, in preparation of. cases for the Court or Commission. The debate at this stage was interrupted. Mr Forbes moved a motion placing on record, the recognition of the high services rendered to New Zealand by Mr J. R. Corrigan, a former member of the House, and tendering sympathy to the widow. The motion was carried, and the House adjourned till 7.30 as a mark of respect. The House, in 'the evening, resumed the debate on the Rural Mortgagors Bill. Mr Endean said the Bill was absolutely necessary in the interests of tne farmer. If a competent organisation was appointed, an inefficient farmer who had no chance of succeeding would be quietly put off the laud and someone else nut in his stead. Dealing with the equity clause, he said that the provision would not stand any test. It was absolutely opposed to all legal principles. He agreed with Mr Wilkinson that the period of five years of budgetary control should be substantially cut down, and thought thei mortgagee should have some right to take action. At the same time he congratulated the Government on taking a bold step. Mr Wright said there was a great

DEAL OF SOB-STUFF M)out farmers’ difficulties. In many CiQses, the farmers bought land with tlieir eyes open at too high a price, anG when they got into difficulties, Won-farmers were expected to come oo their aid. If a businessman asked for assistance he worCd/ be sent to a charitable institution. The I3in 'had staggered the business community which was wanting to know what the Government was going to do next. Mr Webb asked what provision the Bill was going to make for the fifty thousand farmers who were on the verge of bankruptcy, seventy-four thousand unemployed workers, and the forty to fifty thousand businessmen who were in difficulties. Mr Stallworthy said that so far as the general interests of the farmers, particularly dairy farmers, were concerned, they were never more misrepresented than they were to-day. The Bill was merely a pretence at doing sonithing for the farmer. He suggested that the Prime Minister should abandon his proposed trip to

England and should immediately ask for a dissolution of Parliament in order to seek a mandate from the people. Mr Lye said the Bill was a genuine attempt to have a national stocktaking. Capital losses had taken place, and adjustment had to be made, and he believed both parties to the contract should make equal sacrifices. Machinery was set up in tho Bill to bring them together, before the Mortgage Adjustment Commission, and he thought both mortgagor and mortgagee would benefit from the probationary period. The debate was adjourned.