FARMERS’ FINANCE

Hawke's Bay Tribune, Volume XXV, Issue 77, 14 March 1935, Page 9

FARMERS’ FINANCE

Corporation Bill Passed THIRD READING SPEECHES By Telegraph—Press Association WELLINGTON, March 13. When the House of Representatives met at 2.30, the third reading debate on the Mortgage Corporation Bill was resumed. Air W. J. Polson (Independent, Stratford) reiterated that the Bill, in its present form, was not acceptable to the farmers, lie thought the Minister had allowed certain interests to warp his judgment. He had put the clock back 30 or 40 years when capita! dictated to the country entirely. He had found that scores of : branches of the Farmers’ Union had supported him in the action he took. Judging from all the evidence he could get from tho farming community, endorsed by evidence from the urban community, the Bill had no friends. The supporters of the Government were not all satisfied with the Bill, particularly tho inclusion of shareholder capital. It was clear, in his opinion, that party loyalty had transcended the interests of the country. The Government was disguising the fact that it was behind the Corporation if anything happened. The Government must meet any failure of the Corporation to meet its liabilities. Mr Downie Stewart (Govt., Dunedin West) said that the object of the Minister was quite commendable, but the same result could have been achieved in a much less cumbrous manner ii effect had been given to the report oi the Rural Credits Commission. Hud that been done it would have obviated all the complications of the present legislation. Mr W. Nash (Lab., Hutt) said that the Minister had not shown one fraction of advantage that would come to the country by the introduction of private shareholders. He also protested against the fixation of the dividend at 11 per cent., and said money could 6e secured much more cheaply if the Government desired. The Government was simply building a barrier round financial institutions, as it had erected barriers round other institutions. Mr A. M. Samuel (Independent, Thames) urged that commissioners of Crown lands should be made associate directors of the Corporation, as they were fully acquainted with, and were sympathetic with, the needs of tho returned soldier. Mr Coates said that it was not correct to say that fixation of the dividend rate raised the rate by half per cent, because the original provision was 4 per cent, or one per cent above the bond rate. He also claimed that there was no relationship between the inrerest and dividend rate. The question of liability of the Crown for rates was a broad question and should not have been raised on a bill of that sort. He admitted it was a hardship, but no Finance Minister would be justified by making the country at the present time, liable for £500,000. He sincerely hoped that when the final vote was taken and the Bill passed, members would give every assistance to make it a success. He also agreed to take Mr Samuel’s suggestion into consideration. The third reading was challenged, and on a division being called for the Bill was read for the third time by 10 votes to 28 and passed. As Ministers wished to be present at Government House to-night, the House rose at 5.35 till to-morrow afternoon