PARLIAMENT

Manawatu Standard, Volume LVI, Issue 248, 17 September 1936, Page 11

PARLIAMENT

VALUE OF LAND. CONFLICTING VIEWS. Per Press Association. AVELLINGTON, .Sept. 16. The House of Representatives met at 2.30 p.m. After formal business the Alortgagors arid Lessees Rehabilitation Bill was considered in Committee.

Hon. A. Hamilton urged that existing members of Adjustment Commisisions should, where possible, be reappointed so that advantage could be taken of the experience they had gained since their appointment. Dealing with farm properties was a job that needed experience, and he thought the Alinister should consider appointing former members before appointing newon es.

Air AV. A. Bodkin said it would be an extreme disaster if bias were shown in the appointment of the members of the Commissions. He said the basic value of property should be what it could produce under efficient management. It was necessary to do a certain amount of adjustment, but lie claimed that it was not as urgent as most people believed. The mere fact that, notwithstanding there were £125,000,000 worth of rural securities, the total value of mortgages regarding which adjustment was sought, was only £3,"700.000 did definitely suggest that the matter was not as urgent as most people were given to believe. Air AV. J. Poison said the tiro vision to exempt certain mortgages should not be left to the Governor-Gonoral-in-Couneil to decide, but should be a matter for the Court. In fixing the productive value of land, no provision was made for profit. He thought an amount representing sinking fund should he provided so that a farmer could look forward to the day when lie would be able to pay off his mortgage. He asked if a flat mortgage, when refinanced at the end of five vea-rs, became a second mortgage. If that were done it might place a farmer in a verv difficult position.

PRIOR IT A"’ OF MORTGAGES. Hon. AV. Nash, Alinister of Finance, said tlie principle of priority of mortgages was in operation in Britain where it had served a useful purpose ‘to many occupiers of land. It was definitely for the purpose of ensuring the maximum production of the land. iTliere had to be some provision that (those who supplied farmers with seed iand manures received their money, otherwise the farmer would not get seed and manure. Referring to sales of properties, Air Nash said power would be taken to ensure that the farmer who was given some benefits by the adjustment would not be able to sell his property within the period of iiidjustment. He assured Air Hamilton that people who had experience (would be appointed to the Commissions.

Refer ring to another argument, Air Nash said that under another Bill to be passed there would be higher taxation to be paid by companies. He said at present the load ol taxation fell on the ordinary shareholder, and steps would be taken to bring in interest paid to debenture holders and preference shareholders. J f preference shareholders felt they they were not getting justice, they could make application to the Court, said the Alinister. He upheld the provision that large estates could be subdivided or a portion sold if the Commission thought it advisable that this should be done. Air Bodkin contended that the whole of the adjustable debt should not he written off. hut that- some hope for the future should be held out for the mortgagee as well as for the mortgagor. After all, if a property were mortgaged to the extent of 100 per cent, the real owner was the mortgagee and not the mortgagor, and he should receive some consideration. Rt. Hon. J. G. Coates said that, although it was not expressed, it evidently was intended to give the farmer an equity in his property, but if the farmer missed one payment as arranged for bv the Court he was gone. He believed more farmers would go out under that part of the Bill than under the five-year budgetary system.

Air Nash stated that there were a number of amendments to be introduced and lie suggested that the Bill should be reprinted with the amendments inserted.

The short title of the Bill was passed and also two machinery clauses.

Progress was reported and the House rose at 9.30.