PARLIAMENT

Manawatu Standard, Volume LVI, Issue 152, 29 May 1936, Page 9

PARLIAMENT

TO-DAY’S SITTING. THE NEW LENDING BILL. OPPOSITION URGES CAUTION. Per Press Association. WELLINGTON, May 29. The House of Representatives met at 10.30 a.m. The second reading debate on the State Advances Corporation Bill was resumed by lit. Hon. G. W. Forbes, who referred to the establishment of the Mortgage Corporation. He said that, after all, it was not the legislation that mattered but the spirit in which it was administered, and he considered the Mortgage Corporation had meant a forward step, and that more effective work could have been achieved by it than under the State Advances Department. The Prime Minister had set out lus ideals, and not much difference could be found with them, but it was the duty of the Opposition to pmnt out the difficulties that would arise in trying to put them into operation. He mentioned the difficulties of speculation. He said the farmer would be penalised by the provision that no goodwill would be allowed. He said prices must rise, despite the assurances given by the Prime Minister. An attempt to stop prices rising had been made in the past, but had failed. Mr Sa.vage had said the Government intended to reform the monetary system, and Mr Forbes pointed out the difficulties that had been encountered in Alberta when that was tried. He agreed that the system might be improved, but if they could 6crap the present one and establish a new one then he would say the age of miracles was not past. If it were not for the risk that would follow, the attempt would be most interesting. Mr Forbes suggested that a research department should be set up to go into the question of housing construction in an endeavour to get the costs down. He urged the Government to be very careful in embarking on the principle of taking shares in industries, but thought that if it was done after a proper investigation it might be an economic propostion. He hoped the new corporation would be a success, as he wanted to see the present difficulties overcome.

VARIED INTEREST RATES. Mr G. M. Williams said the machine they were building in that Bill would bring great blessings to the people. The Leader of the Opposition had been unable to find any flaws in the measure, and had contented himself with criticising the spirit behind it. The housing of the people was a national need ' and it was only right that the people should pay something towards a national housing scheme. He would not suggest that an advance should be given at a very low rate, but said the interest rate would be varied according to the public utility. At present rates varied according to the value of the security. The former was a new principle. The Bill gave the Government power to direct capital where it was most necessary and where it would give the greatest benefit to the public. POLITICAL CONTROL.

Sir Alfred Ransom said the Bill was a re-enactment of past legislation and was a retrograde movement. It would not operate in the interests of the country, and placed the business of the department directly under political control. He thought it was a wise provision that the Government should guarantee the bonds, but considered the Bill was of a less generous character than the Mortgage Corporation Act. It was conservative rather than liberal. It was regrettable that any weaknesses that might have 'been apparent under the last Act were not likely to be removed b-- the present Bill, because it was more conservative. He thought the provisions of the Bill were based on sound finance, and there was no great variation from the conduct of the Mortgage Corporation. He took it that when the Prime Minister said the Government were going to keep price from rising he referred to interest, and said it would have been better had the Prime Minister said interest instead of prices,, as interest was more applicable to the Bill. Mr J. G. Barclay said the Bill before the House would assist farmers to obtain money at a reasonable cost, and it would assist workers in towns to obtain money to build homes. Air Barclay said Air W. J. Poison was perambulating the country saying the Government were going to nationalise the land, but the Bill showed that the Government were not going to do that, lie did not agree with the members of the Opposition that costs would rise. He thought the Alortgage Corporation did more than anything else to put the last Government out of office. Air Barclay added that the Bills brought before the House had done away with the smug complacency met with a year ago, and lie said that during the coming recess the Government members would go out into the country to discuss that and other measures that had been passed with the electors. Hon. A. Hamilton: So will we. Air Barclay said the Mortgage Corporation had been lending on a conservative basis. He knew of cases where application was made for 33J per cent, of the value of land but the applicant could not get it. He thought the Bill would be accepted by the farming population, who would look to it in future, and with sympathetic administration there was no limit to its possibilities. Air \Y. J. Brondfoot claimed that the Mortgage Corporation had been responsible for lowering interest to a level it had not been at for very many years. The main framework' of the Mortgage Corporation liad been adopted by the Government, and that was a compliment to the past Government. The House rose for the luncheon adjournment.