MR. POLSON’S FEARS

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

MR. POLSON’S FEARS

MERGER OF RURAL CREDITS CO-OPEEATIVE SYSTEM WANTED “BEEN EMINENTLY SUCCESSFUL” (By Telegraph—Press Association.) WELLINGTON, March 5. Fear that the benefits of co-opera-tion as evidenced in the activities of the rural credit organisations would be lost when those organisations came under tthe control of the Mortgage Corporation was expressed by Mi W. J. Poison in the House to-night when the committee was considering the provision for the merger of the rural credit organisations with the corporation. Intermediate rural credits were established at a time when prices and values were much higher than they were to-day, said Mr Poison, and though they had been through difficult times, yet; managed partly by State directors and partly by the farmers, they had been eminently successful —the most successful organisation lending money to the farmers. The total loss had been only £2OO. Mr Poison contended that it was impossible to join a co-operative system with a- joint stock system, and he saw no reason why the co-operative system should be buried when it was a success. The action of the Government was incomprehensible. Yet in view of the object of the Bill to hand over control of the farmers’ finances to the corporation one could understand the action. The effect would be to tie farmers’ finance, and a sound ;o-operative organisation would be destroyed. . i Mr Coates said the occasion was the irst on which Mr Poison had raised :his objection. Mr Poison: No! I strongly objected ni the second reading. Mr Coates: You have discussed the neasure iji other places and, as far is I know, you have not, raised this joint. Mr Poison: I can show you the proof )f my Hansard. Mr Coates: But you did not conlemn it at that time to the extent you ire condemning it now. Do you suggest the present situation is entirely <ati|factory as far as intermediate credits are concerned? Mr Poison: I say better than the iituation you are going to create. The Minister pointed out that the ntermediate rural credit section would lot. he handed over except under )rder-in-Council and the Government rould have to he satisfied.