FARM MORTGAGES

Hawera Star, Volume LIV, 22 February 1935, Page 10

FARM MORTGAGES

MR. C. A. WILKINSON’S VIEWS

“ABOLISH THEM FOR ALL TIME” BOLD POLICY NEEDED. “Abolish all farm mortgages once and for all,” answered Mr C. A. Wilkinson (Independent-Egmont) when asked during his second reading speech in the House of Representatives ou the Mortgage Corporation Bill to propound a better remedy for the solution of mortgage difficulties than that suggested in the Government’s measure. Mr. Wilkinson asked Avhy the problem could not bo dealt ivith outside party lilies so that the best possible plan could be produced. The Bill Avas not one to rehabilitate farmers, but to set up a money-lending institution Avith safeguards to preserve the interests of money. Mr. Wilkinson said he would certainly give the Government credit for good intentions. It had probably gone as far a$ it dared to go, but in his view it should go much further, if it wanted to tackle the problem pro|>erly, whether money interests liked it or not. PARLIAMENT’S PLAIN DUTY. The moralty of the question Avas not at issue, said Mr. Wilkinson. The fact Avas it was Parliament’s plain duty to help farmers in difficulties out of their trouble. If the GoA'ernmont would come forward Avith a bold policy to that end he would help it. Mr. T. D. Burnett (Government — Tc-muka) : What Avould you do ? Mr. Wilkinson: Abolish all farm mortgages once and for all. Mr. Burnett: Now we knoAv. Mr. Wilkinson : You would not understand. It is foreign to you. Mr. Burnett: Absolutely, and thank God for that. Mr. Wilkinson commented that Mr. Burnett might not be in the same need of assistance as some farmers. Mr. Burnett: Whatever I have 1 have earned. v Mr. Wilkinson : I don’t doubt that you are a very worthy citizen, but you should allow that other members have ideas as well as yourself and you should be more tolerant.

Continuing, Mr. Wilkinson said the Bill Avould not re-establish those Avho were in trouble. If nothing better could be obtained he Avould like to seo a lower rate of interest for farmers. He believed the Government could borrow in the open market at 3 per cent. Let the Government take over the mortgages on a readjusted basis. If there Avere any losses let the taxpayers stand them.

MINISTER'S INTERJECTION. Thoso who had invested in land had taken a safe course, added Mr Wilkinson, in believing their investment was gilt-edged. It now turned out that many of the investors had lost money and Avliat was the use of trying to sustain a mass of old values. The Minister of Finance, Mr Coates : Do you suggest all dud mortgages should be taken over by the State?

Mr. Wilkinson said he would not snggost that sueji mortgages should be Avrittcn off as lie. himself had had to do, but other mortgages should be taken over at their existing values. If he were an embarrassed farmer the terms offered by the Bill would not suit him.

Mr. W. A. Bodkin : Would you hand the farm back to the mortgagee, then? Mr. Wilkinson : Yes, in many cases and the mortgagees Avould be quite content to take the farm back. If the Government will not settle this question we must look for a Government that will. The general policy of this corporation Avill be to keep loans down and interest rates up, Avhich is just t.he opposite to what I want. It has been said mortgagees have been generous. Speaking from my oAVn experience. I lniA'e never knoAvn a mortgagee to give UAvay any concession he did not have to.