MORTGAGE CORPORATION

Nelson Evening Mail, Volume LXVI, 21 February 1935, Page 11

MORTGAGE CORPORATION

DEBATE CONTINUES

MEMBERS EXPRESS THEIR VIEWS

(By Telegraph) (From “The Mail’s’* Parliamentary Reporter)

WELLINGTON.. This Day. The Second Reading debate on the Mortgage Corporation Bill \Vas continued in the House yesterday afternoon. Mr W. S. Parry (Labour, Auckland Central) said the Bill was only a duplicate of the Acts already in existence. Every time a section of the people were in difficulties, the Government passed some law in an endeavour to show the people it was trying to handle the position. Mr C. H. Cliiikard (East Rotorua) criticised dual management of the Coiporation and said the Government should have followed the system as adopted by the Reserve Bank. The Bill provided machinery for collective borrowing which was a step in the right direction as the pooling of assets minimised tile risk and lowered t|je_ rate of interest. Ho considered the dividend o! the Corporation should be limited to 4 per cent, and he favoured a reduction in the number of directors to seven, with only 2 representing the shareholders. The Rev. Clyde Carr (Labour, Timaru) said the Bill was a betrayal of democratic principles. The State was surrendering its rights to maintain equal treat ment for all sections of the people. The legislation was obviously framed by the Government and its advisers to suggest something remedial was being achieved, but it was just window-dressing. The whole proposal was simply to borrow their way out of debt. It was merely postponing the evil day. He wanted to know where the thing was going to end. The Government was handing over Departments to Boards. State Advances had gone. The railways had gone. Broadcasting had gone and Highways and Unemployment had been handed to Boards. Following the Hon. W. Downie Stewart, Mr W. A. Veitch (Government, Wanganui) thought the Bill went too far. He thought that a Bill that contained such vast changes in the existing order, should not bo passed within a few months of a'general election. The matter should be submitted to the people. Ho considered New Zealand should build on the experience of other countries, rather than he indulging in a new scheme of reconstruction for the whole monetary system. There was abundant money awaiting investment in New Zealand. What was wanted was confidence and the feeling that investors would be left alone after tliey bad sunk their money. He contended a search should be made for further markets. Doubtful and safe assets of the Government would he handed over to the Corporation in such a way that profits would go to the Corporation and losses would revert to the Crown. The Hon. A. D. McLeod (Government, Wairarapa) alleged the State Advances Department had been the plaything of political parties since its inception, and he did nob except the Reform Party from that statement. In introducing the present legislation, the Minister of Finance was making an honest attempt to equalise the difficulties that existed between borrowers and lenders, and he congratulated him on his courage. He said he could not work up much enthusiasm about the Bill. Mr A. Stewart (Government, Rangitikei) said as far as he could see, the only direct benefit from the Corporation would be received by the farmer who was unable to meet liis interest charges.

The debate- was adjourned, and the House rose at 10.30 p.m.