PARLIAMENT

Manawatu Standard, Volume LV, Issue 83, 6 March 1935, Page 9

PARLIAMENT

THE MORTGAGE BILL. EX-SOLDIERS’ LANDS. EXCLUSION SOUGHT. Per Press Association. WELLINGTON, March 5. When the House of Representatives met at 2.30 p.m. urgency was accorded the passing of the Mortgage Corporation Bill, which was given further consideration in Committee. Mr A. M. Samuel moved an amendment to clause 36, the object bcing*to exclude lands occupied under the Discharged Soldiers Settlement Act from those being transferred to the comS'/ion. Mr Samuel said soldiers’ 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 their lot would then be a difficult one. The soldiers were very perturbed, as they know it would be a very different matter appearing before the corporation than appearing before the lands boards, wliich were sympathetic to their needs. If left under the Lands Department, the men would always have a chance of receiving the concessions to which they were entitled from the Minister, but what would happen if they -were brought under the corporation P He would be well satisfied if the Minister of Finance would assure him that soldiers would receive the same sympathetic treatment as formerly, but he was afraid the present measure meant breaking up the Discharged Soldiers Settlement Act. Mr M. J. Savage said the clause was either right dr wrong. Workers were in the same position as returned soldiers. Workers had made definite contracts with the Government, which were now to be handed over to a semiprivate organisation. He did not think any lands should be handed over, as lands were in much safer keeping under the State Advances Department. It was the 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. Rt. Hon. J. G. Coates said be had power to place any lands on which mortgages were held by the State under the corporation and also had the power to take them back again. Mr A. J. Stallworthy said the returned soldier now paid 4j per cent. Under the corporation, according to the Minister's statement, he would pay. £4 12s 6d, or even 5 per cent. Mr W. E. Parry said the corporation would take over the cream of tile mortgages from the State Advances Department. What would happen to the rest? “UNNECESSARY ALARM.” Mr Coates said Mr Samuel was unnecessarily alarmed as to' the ultimate treatment the returned soldier would receive as a result of the transfer to the corporation. The next Bill provided a means of adjustment between mortgagor and mortgagee. He thought it could be left to the Government to see that returned soldiers received the sympathetic consideration to which they were entitled. Regarding the figures mentioned by Mr Stallworthy, the rate under the corporation included repayments of capital. The aim of the Government was to get people money and in cases of over-capita-lisation to find what was a fair tiling the mortgagor could be legitimately called upon to pay in the next few 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, and the balance would be dealt with in each individual case. A mortgagor whs protected by the Bill and compromises made between tile mortgagor and tlic department would stand when the mortgage was transferred to the corporation. The amendment was lost by 35 votes to 26. Mr W. Nash asked, if under the Bill, the State Advances Department could be closed down altogether. Mr Coates replied that could be done, and to Mr Langstone Mr Coates said that when the measure became law, the State Advances Department could not consider any further applications for loans. Mr D. G. Sullivan asked if the corporation would make advances to workers requiring homes, and, if so, would workers be restricted to 66 2-3 per cent. Mr Coates said the corporation would consider applications from workers, but tlie limit would be 66 2-3 per cent. HOUSING SCHEMES. In answer to questions regarding slums, Mr Coates said that reports of housing schemes had been received from Great Britain and other countries, and the Government was considering how they could be adapted to New Zealand conditions. Mr Sullivan, referring to the suggestion of the Government that the housing problem could he tackled with the co-operation of local bodies, said their rate burdens put them in an impossible position. Local bodies were losing tens of thousands annually, and if the Government was going to shelter behind the local bodies it would not meet ' the position, because the local bodies would be Tillable to raise lonns for housing, in view of the losses already made on municipal schemes. Mr Parry said it was not a fair deal that the House should be asked to put the shutters up on the State Advances Department, which had rendered valuable service in providing workers with homes. _ , . Mr P. Fraser asked if the Minister would give an undertaking that the corporation would take the same reasonable course as the State Advances Department when a worker was in difficulties. They had the Minister’s undertaking that there would be no evictions without the Minister’s consent, but the workers’ branch should not go out of existence. Mr Coates said the policy of the Government would be that the workers would be protected. He proposed to have the workers’ branch reviewed from top to bottom. When the mortgages were to he handed over, if the arrahgements made were not satisfactory they would not be handed over. Clause 36, which had been under discussion since the House met in the afternoon, was passed at 8.30 o’clock by 33 votes to 22. DETAILS OF AGREEMENTS. Mr Stallworthy moved an amendment to clause 38, making it obligatory on the Government to inform the House of details of all agreements and adjustments made as between the Minister of Finance and the corporation and of the transfer of all classes of securities, and of contingent liabilities and ascertained capital losses. A division was called for on Mr Stalhvortliy’s amendment, which was defeated by. 35 votes to 22. Coming to clause 40, Mr W. J. Poison protested against the corporation taking ovei the duties of ihe Rural Intermediate Credit Board. He paid a 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 the farmers’ finance to the corporation. The farmers’ future would be shackled. The Bill smashed 1

tlie best co-operative effort that had ever been made in New Zealand. The clause was passed. Progress was reported and the House rose at 0,20 a.m. LIABILITYJXm RATES. AMENDMENT DEFEATED. EXEMPTION OF CORPORATION. WELLINGTON, March 6. The question of the effect on local bodies of the p-artial exemption of the Mortgage Corporation from rates was argued in the House of Representatives late last night, when the clause ill the Bill relating to that issue was reached. The clause seeks to give to the corporation the same degree of exemption on mortgages transferred from the Crown as is enjoyed by the Crown itself, and in the earlier discussions on the Bill many members had. urged that the effect should be to throw an unfair burden on local bodies. When the clause was reached last night, Mr W. Nash moved an amendment, the effect of which would be to make the corporation liable for rates and taxes to the same extent as if it were an incorporated company. The Chairman of Committees (Mr J. A. Nash) ruled the amendment out of order. He said that by making the corporation liable for rates on transferred Government mortgages at present exempt the land on which the mortgage was secured would become charged for rates due. That would decrease the capital value of the land, thereby increasing the loss of capital moneys, and would reduce the liability of the corporation to pay the Crown moneys under its contingent liability. It was not in order to reduce by amendment the amount of a debt due to the Crown. Mr A. E. Jull urged that the clause should he deferred to enablo the Minister to review its effect a.nd to see whether he could meet the position, thus helping the local bodies. The Minister of Finance said that the elause was being used to clear up a difficult point which had been discussed on several occasions between the Government and representatives of local bodies. Approximately £500,000 would be involved if Parliament insisted that tlie Government should find all rates due on mortgaged property under the State Advances Department alone. . Mr H. M. Rusbwortli: Should the local bodies be responsible for that? Mr Contes: Which is the most Urgent case? We have many urgent questions to consider, and if we load our Budget up with half a million wc are going to find it impossible to attend to more important matters. Mr D. G. Sullivan: You are collecting rents for these properties. What have you to say to that? Mr “Coates: It is quite clear, in any case, that neither the arrears nor current rates should be the responsibility of the Mortgage Corporation. Mr Sullivan: Other people pay their debts.

Mr Coates: The law of this country says it is not a debt for tho Crown. Mr H. G. Dickie: Cannot you compromise ? Mr Contes: The moment the Crown accepts responsibility for rates as a mortgagee it is in for the lot. The clause bad not been disposed of when the House adjourned.