RENT AND INTEREST

Grey River Argus, 17 March 1932, Page 4

RENT AND INTEREST

THE RELIEF BILL For Mortgagors and Tenants PROVISIONS OUTLINED. (From Our Parliamentary Reporter./ WELLINGTON, March 16. The Mortgagors and Tenants Relict Bill extending the provision of its ex i.-ting legislation for the relief of mor: gagors and tenants was introduced i the House this evening. Replying to Labour queries, Mr Forbes said that under the original Act. passed last year, there had been substantial remissions in interest and mortgagors generally. In Canterbury a great many arrangements have been entered into whereby the proceeds ot farms had been pooled, and an allow ance made to the farmers to carry on. and. after that, the remainder had been divided between the mortgage? tanks or other interested parties. This Bill, he said, would have a general application to all .mortgages, including Grown Mortgages Clause Two gave the mortgagor the right to approach the Court with an action having been taken for forclosure by the mortgagee. Mr McKeen: The present system is very cumbersome Mr Forbes: When an appeal is made to the Court by a mortgagor, his ease is referred to an Adjustment Commissioner, who will .make recommendations to the Court Mr Semple: 7 The cost of approaching the Court has barred a lot of peopleMr Forbes: I have not heard com plaints. He said!there was provision ir the Bill to grant relief to lessees by wav of remission or reduction, while the Court had power, also, to deal with rent as it applied to all premises. Mr Walter Nash: Weekly tenancies? Mr Forbes: No. Unless a weekly"

tenancy has been in operation for some time, it does not apply. There must be some permanent arrangement under which the Court can adjust the rent.

Referring to the personal covenant in mortgages, the Prime Minister said that in cases where hardship had been proved, the Court had power to renew the position. Mr Lee: Does that apply to ail forms of securities? Mr Forbes: Land, but not chattels. The Court is left to decide whether there has been hardship Mr Mason: There is nothing about reducing interest ? Mr Forbes: The Court has power to reduce interest, and to remit or extend the period of the mortgage. The Prime Minister added that if any attempt were made to anticipate the provisions of the Act, the Government would take steps to deal with such offenders. Mr Holland said that it seemed to him that what the Government now proposed was an improvement on the existing legislation, but what disappointed him was the wide difference in the methods of dealing with th* wages of the working men and the money lenders. What was wanted was

a statutorv reduction of interest, rents and so forth to the' fanner and thworker threatened with foreclosure. There was not much satisfaction i.i either being told that he could now move to the Court if he could find the fees to enable him to do so. Mr Forbes: The Court has power to remit interest altogether. The Court had the power to do that with wages, but you have taken it away, replied Mr Holland.

The power which the Prime Mini ster denied to the working man. M: Holland continued, he was using ir connection with the legislation nov before the House. If the method fol lowed was correct in the one case surely th? method used was wrong ir the other. The logical thing to do wa> to reduce fixed charges to enable tho«« who had had their wages reduced t< uicet their commitments.

Mr Forbes: The real wages hav not been reduced.

Mr Holland: With the workinc man’s income in the form of wages pulled down, it means that he is al together in an adverse position, be cause his fixed charges reonain ‘the same