MANY AMENDMENTS

Hawera Star, Volume LIV, 1 March 1935, Page 8

MANY AMENDMENTS

Members’ Opinions on Clauses of Mortgage Bill

STATE DIRECTORS’ TERMS

BORROWING POWERS {By Telegraph —Tress Association.) WELLINGTON, To-day. In the House of Representatives today Mr Poison asked the Prime Minister if, in view of. his visit to Britain and the attitude of The British authorities towards quotas and levies, he would give the House an opportunity of discussing those subjects oefore he departed. Mr Forbes said an opportunity would be given for discussion. * Mr Campbell was granted one day’s leave of absence on account of illness.

Urgency was accorded the passing of the Mortgage Corporation Bill, which was further discussed in committee.

Mr Wright urged that State directors should be substantial shareholders in the corporation, but this was strongly opposed by Labour members, who contended that that would take the control of the State away altogether. Mr Veitch criticised the term of seven years for which the joint managing directors were ' to be appointed. He said if a man turned out to be unsuitable he could not be displaced before seven years unless paid substantial compensation. Mr 'Stallworthy moyed as an amendment that the term be reduced from seven to three years. Hon. J. G. Cobbe, who is temporarily in charge of the Bill, said it was desired to obtain the best-men possible for those positions, and it could not be expected that first-class men would take the position unless the term was fairly long. The amendment .was lost on the voices.

Mr Stallworthy moved a further amendment to reduce "the term of appointment of State directors from five years to three. It was also lost on the voices.

Coming to clause sixteen regarding the vacation of office by the directors, Mr. Jordan moved an amendment giving the in Council power to remove from office any director who becomes permanently incapable, or fails to comply with the requirements of the Act, instead of giving that power to the resolution of .the board approved by Governor-Gen-eral in Council, but the amendment was lost, no division being called for. Mr Langstone sought to obtain from the Minister of Finance a statement as to the fees and expenses to be paid to members of the Board. He contended that they should receive the same travelling expenses as a Minister of the Crown (thirty shillings a day). He considered the work could be done for much less than the £3OOO maximum provided. Mr W. Nash raised a point that power seemed to be given to a general meeting of shareholders to fix the annual amount to be given members of the board. It could fix the amount at £IOO if it wished, in which case nobody would act as a director. Mr Coates agreed that that could happen, although it was not likely. However, he agreed to consider the matter further.

FIXING REMUNERATION.

Mr Parry, on Clause IS, moved an amendment, the object of which was to give the Government, by Order-in-■Coumcil, power to fix the remuneration of the managing -directors instead of giving that power to the board, with the approval of the Governor-General in Council. The amendment was lost.

Mr Savage »drew attention to subClause 3 of Clause 21, which read: "All securities issued by the corporationshall constitute a floating charge on all assets of corporation.” He asked if it should read: "Shall constitute a floating charge on all state revenues/’ and if it would not be a stronger way of putting it. Mr Jones asked if the Minister would be allowed to speculate with bonds issued for mortgages taken over by the ■corporation. Mr Coates said that on securities being taken over from the State Advances, the corporation would be able to borrow up to £70,000,000, the bonds issued, of course, being' treated as borrowed money.

Replying to Rushworth,* be said he had -reason to believe the first issue of bonds would be very satisfactory, but *he could not say more than that, and the bonds would: be either bearer bonds, stock or inscribed bonds.

Mr Savage said the issue of bearer bonds meant bringing the printing press into operation. In 99 cases out of 100 bearer bonds could be used as currency.

A machinery amendment was agreed to and the clause was passed. An amendment by the Minister providing for investment by building societies was agreed to. Mr Savage moved an amendment to Clause 24 -which provided that the class of land that may be accepted as security for loan was agricultural, horticultural or pastoral. What he asked was what had become of the advance to workers. He contended that -workers’ homes should come within the scope of the security as much as farm lands. His amendment would put all citizens on the same basis.

Mr Cobbe, in reply, said the present lull was designed to assist the farmer. The point Taised by Mr Savage would be dealt with in a measure that has yet to come down.

At this stage the luncheon adjournment was taken.