Advances by the State

Manawatu Times, Volume 60, Issue 54, 6 March 1935, Page 7

Advances by the State

Mortgage Corporation Bill Further Debated

TRANSFER OF MORTGAGES

Per Press Association. WELLINGTON, Last Night. iVlicn the House of Representatives met at 2.30 p.ui. 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 30, the object being to exclude lands occupied under the Discharged Soldiers' Settlement Act from thoso being transferred to the corporation. Mr. Samuel said soldiers’ lands had always come under the Lands Department and had been treated sympathetically. Ho was afraid they would not .receive the same treatment under the corporation and that their lot would then be a diflicult one. The soldiers were very perturbed, as they knew it would be a very different matter appearing • before the corporation than appearing before the Lands Boards, which 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. He would bo well satisfied if the Minister for 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. ...

Mi. M. J. Savage said the clause was either right or wrong. Workers were in the'same'position as returned soldiers. Wo:leers had made (10/hii-c contracts with the Government, which wore now :c b-„ handed over to a semiprivate organisation. He did not think any lands should be handed over, inlands were in much safer keeping under the Stale Advances Department. 3t 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. Hon. J. G. Coates said he had power to place any lands cn which mortgages were .held by the State under the corporation and also had the power to take them back again.

>1 .Mr. A. .T. Stallworthy said the returned soldier now paid 44 per cent. Under tiic corporation, according to the Mini stcr’s statement, he would pay £4 12s Gd, or even 5 per cent. “Only the Cream.’’ 1 Mr. W. E. Parry said the corporation would take over only the cream of the mortgages from the State Advances Department. What would happen to the test?

Mr Coates said Mr Samuel was unnecessarily alarmed as to the ultimate treatment of. the returned soldier would receive as a result of transfer to the corporation. Tlio next Bill' provided a means of adjustment between a mortgagor and a mortgagee. He thought it could be left to the Government to see that returned soldiers received a 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 overcapitalisation to find what was a fair thing the mortgagor could be legitimately called upon to pay in the next few years. In transferring mortgages an agreement would bo reached between tho 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 was protected. by. the Bill, and compromises made between the mortgagor arid the department would , stand when the mortgage was transferred to the corporation.

The amendment was lost by Go votes to 26. .

Mr W. Nash asked, if under the Bill, the Statu 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 bo restricted to 66 2-3 oer cent.

Mr Coates said the corporation would consider applications from workers, but the limit would be 66 2-3 per cent.

Iu answer io 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. When the House resumed after the tea adjournment, Mr. Sullivan, referring to the suggestion of the Government that the housing problem could be 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 unable to raise loans for housing, in view of the losses already made on municipal schemes. Closing Up State Advances. Mr. W. E. Parry said it was not a fair deal that the House should bi ksked to put the shutters on the Statfe Advances Department, which had rendered valuable service in providing workers with homes. ~

Mr. P. Eraser asked if the Minister would give an undertaking that tho 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 i'vv'lthiiiiVTlic "Minister ’s consent, but tho

workers’ branch should not go out of cxisteuce.

Mr. Coates said the policy of the Government would bo that the workers were protected. He proposed to havo the workers’ branch reviewed from top to bottom. When the mortgages were to be handed over, if the arrangements 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.

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 a"S between the Minister for 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. Stallworthy’s amendment, which was defeated by 35 votes to 22. Coming to clause 40, Mr. W. J. Poison protested against the corporation taking over the duties of the 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' iinance to the corporation. The farmers’ future would be shackled. The Bill smashed the best co-operative effort that had ever been made in New Zealand.

Tho clause was passed. Progress was reported and the House rose at 12.20.