PARLIAMENT

Manawatu Standard, Volume LV, Issue 90, 14 March 1935, Page 9

PARLIAMENT

MORTGAGE BILL PASSED. FARMERS’ LEADER ADAMANT. CRITICISM OF FIXED INTEREST. Per Press Association. WELLINGTON, March 13. The third reading debate on the Mortgage Corporation Bill was resumed in the House of Representatives this afternoon. Mr W. J. Poison reiterated that the Bill in its present form was not acceptable to the farmers. There was no assurance in the Bill of a sufficient fall in interest rates to do the farmer any good. He thought the Minister had allowed certain interests to warp his judgment, and he had put tbe clock back 30 or 40 years, when capital dictated to the country entirely. He had found that scores of branches of the Farmers’ Union had supported him in the action he had taken. Judging from all the evidence he could get from the farming community, endorsed by evidence from the urban community, the Bill had no friend*. The supporters of the Government were not all satisfied with the Bill, particularly the inclusion of the shareholder-capitalist. 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 and if anything happened the Government must meet any failure by the Corporation to meet its liabilities.

Mr W. Downio Stewart said the object of the Minister was quite commendable, but the same result could have been achieved in a much less cumbrous manner if effect had been given to the report of the Rural Credits Commission. Had that been done it would have obviated all the complications of the present legislation. Mr W. Nash said 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 4£ per cent, and said money could be 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 urged that the Commissioners of Crown Lands should be made associate directors of the Corporation, ns they were fully acquainted with and were sympathetic with the needs of the returned soldier. Rt. Hon. J. G. Coates said it was not correct to say that the taxation of the dividend rate raised the rate by one-half per cent, because the original provision was 4 per cent., or 1 per cent, above the bond rate. He also claimed that there was no relationship between the interest rate and the dividend rate. The question of the liability of the Crown for rates was a. broad one and should not have been raised on a Bill of that sort. The position of some local bodies as the result of a Court decision that the Crown was not liable for rates would be considered when the Budget was being prepared. He admitted it was a hardship, but no Finance Minister would be justified in making the country at the present time liable for £500,000. He sincerely hoped that, when the final vote was taken and the Bill was 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 the third time bv 40 votes to 28 and the Bill was passed. As the Ministers wished to be present a.t Government House to-night, the House rose at 5.35 till to-morrow afternoon.