SMALL FARMS BILL

Hawke's Bay Tribune, Volume XXIII, Issue 74, 9 March 1933, Page 7

SMALL FARMS BILL

MR. COATES EXPLAINS

PRINCIPLES OF RENT PAYMENT

LUMP ILSOR Y ACQ VISITION PROBLEM. B> Telegraph—Press Association parliament Buildings, March 9. Explaining the {small Tarins Bill Amendments passed in the House oi Kepreseutalives last night, the Kt. Hun. J. G. Coates said that authority would be given lor the payment ot rent fur the first thiee years of the term •I a small farm lease. As the clause •tood in the Bill, unpaid rent was definitely charged on the Unemployment Hoard ; now it was left to the board to determine in any case whether or not the payment ot rent should be made. As originally passed the clause might •asily have encouraged lessees to default in their payments. The Minister said the necessary Parliamentary machinery for taking land for the purposes oi the scheme was provided by another amendment which Uivoked the aid of the Public Works A< t and the Land for Settlement Act »i respect to compulsory acquisition. A proviso allowed a board to be set ap under legislation to determine in Case of a dispute the amount of compensation or purchase money to be paid for land compulsorily acquired. Another proviso gave a greater mea»ure ot protection to mortgagees whose security might be land intended to be acquired tor the scheme. This required notice of the board’s intention to acquire or lease the land being given to the mortgagee. It further required that his representations should be dealt with by the I - <1 before other action is taken. An additional clui. provided that where the mortgagor of land leased as a small farm defaulted in interest payments the rent paid under the lease was to be applied in satisfaction of the unpaid interest. In cases where the rent was more than sufficient to meet the first mortgagee’s claims it could be applied for the benefit of the second or other mortgagees in order of priority. A corresponding provision was mailc concerning application for the benefit of the mortgagees of purchase money paid on the acquisition by the lessee of the fee simple.