MORTGAGE CORPORATION

Hawera Star, Volume LIV, 6 March 1935, Page 9

MORTGAGE CORPORATION

DEBATE IN THE HOUSE POSITION OF SOLDIER LANDS ALARM OVER TREATMENT. (By Telegraph—Press Association.) WELLINGTON, March 5. Urgency was accorded the passing of the Mortgage Corporation Rill, which was given further consideration in committee in the House of Representatives to-day. Mr. .A. M. Samuel (Independent, Thames) moved an amendment to clause 36,,tii0 object being to exclude lands occupied tinder the Discharged Soldiers’ Settlement Act from those being transferred to the corporation. Mr. Samuel said soldiers’ lands had always come under the Lands Department and had been treated .sympathetically. He was afraid they would not receive the same treatment under the corporation, and that the soldiers’. lot would then be difficult. The soldiers were very perturbed as they knew it to lxi a different matter appearing before the corporation from appearing before the lands boards, which were sympathetic to their needs. lij left under the Lands Department the men would always have a chance of receiving concessions to which they were entitled from the Minister, but w hat would happen if , they were brought under the corporation? He would bo well satisfied if the Minister of Finance would assure him that soldiers tvould receive the same sympa-j thet-io 4 treatment as- formerly, but he was afraid the present measure meant the breaking tip '■ of the Discharged Soldiers’ Settlement Act' Mr. M. «T. Savage (Leader of the Opposition) said the clause was either right or wrong. The workers were in the same position as the returned soldiers. The workers had made a definite contract with the Government and were now to be handed over to a semi-private organisation. He did not think any lands should be handed oyer as lands were in much safer keepingunder the State Advances Department. It wa3 a definite breaking of ; an agreement without consulting the > landholders. He agreed .with _ what Mr ] Samuel had said,'but it applied to all who came under the State Advances , Department. The Rt. Hon. J. G. Coates said he ( had power to place any lands on which _ mortgages were held by the State under the corporation. Be also had power to take them back again. Mr. A. J. Stallworthy (Independent; < Eden) said the returned soldier nowpaid 41 per cent-. Under the corpora- !

tion, according to the Minister’} l statement, he would pay £4 12s (id, or even £5 per cent. Mr W. E. Parry (Labour, Auckland Central.) said the corporation would take over only the cream of the mortgages from the State Advances Department. AVhat would happen to the rest? Mr. Clcates said Mr. Samuel was unnecessarily alarmed as to the ultimate treatment returned soldiers would receive as a result of the transfer to the corporation. The next Bill provided means of adjustment between mortgagor and mortgagee. He thought it could bo left to the Government to see that returned soldiers received the sympathetic consideration to which they were entitled. Rbgarding the figures mentioned by Air .Stallworthy, Air. Coates said the rate under the corporation included repayments of capital. The aim of the Government was to get the people money, and in cases of over-capitalisa-tion to find out what, was a fair thing the mortgagor could be legitimately called upon to' pay in the next five years. In transferring mortgages an agreement would be reached between the Government and the corporation as to how much of the State mortgages was gilt-edged. The balance would be dealt with in each individual case. The mortgagor was protected by tlie Bill ,aud compromises made between the mortgagor and the department would stand when the mortgage was transferred to the corporation. The amendment was lost by 3o votes to 2 G. Air. Stallworthy moved an amendment to clause 3S making it obligatory on the Government to inform the House of the details of all arrangements and adjustments made as. between the Alinister of Finance and tlie corporation and of the transfer of all classes of securities and of contingent liabilities and ascertained capital losses.

A division was called for on 31r. StallworthyV amendment, which was defeated by 35 to 22. Oui clause 40 31r. W. J. Poison protested against the corporation taking over the duties of the Rural Intermediate Credit Board. He paid tribute to the work the board had done and said the provision was the most vicious proposal in the Bill. He believed the* whole Bill was aimed at handing over farmers’ finance to the corporation. Farmers of the future would be shackled. The Bill smashed the best co-operative effort that was ever made in New Zealand. The clause was passed. 3lr. Stallworthy moved an amendment to clause -14 providing that the accounts of the corporation should he audited by the Controller and Audi-tor-General, but this was lost on the voices. Mr. W. Nash had given notice of an amendment to clause 47, making the corporation liable for rates and taxes, but this was ruled out of order as it involved a liability to tlie State. Mr. Nash said the clause was the most unjust one that could be put into any Bill.

31r. A. E. Jull (Co., Wnipawa) -suggested that the corporation, shoiil 1 have to carry 50 per cent, of local body rates. . •

3lr. Sullivan appealed to the 3!imstcr to bo,fair to the local bodies and said that if the Government bad their difficulties the local bodies also had theirs. It was unjust, he said, that local bodies which had all the services to provide should be deprived of rates which the Government was collecting in the shape of rent. The Minister .bad previously stated that the rent payer paid rates, yet lie did not recognise that when the matter of rates on Stato Advances properties was concerned. 3lr. Coates said that in 1933 arrears ratOs on mortgages due to the State Advances Department were £303,000. Since that da)? arrears had increased

by another £200,000. The Government had many urgent questions to consider and if had to lead the Budget with another £500.000 it would be unable to meet ether obligations. If 3Fr Jull’s suggestion were adopted it would a 1 once mean that the State recognised liability for rates. The next measure dodlt with rural matters, and when ii became law rural bodies would bo in a satisfactory position. Progress was reported and the House rose at 12,20 a.m.