MORTGAGE RELIEF

New Zealand Herald, Volume LXIX, Issue 21349, 25 November 1932, Page 13

MORTGAGE RELIEF

EIGHTS OF PARTIES

STEERING MIDDLE COURSE

PERSONAL COVENANT

NEED FOR LEGAL ADVICE

[rtv TELEGRAPH —SPECIAL RE PORT Ell] WELLINGTON. Thursday The need for preserving the balance between both parties when making adjustments between motgagors and mortgagees was emphasised by the Minister of Justice, the Hc|i. J. G. Cobbe, when replying to the second reading debate on the Mortgagors and Tenants' Further Relief Bill in the House of Representatives today. It had been impressed upon adjustment commissions that mortgagees had rights as well as mortgagors. In moving the second reading, the Minister said he thought it would be generally agreed that when a mortgagor had a reasonable chance of surmounting his difficulties, he should bo given every encouragement to do so. The farmer was the main source of national income and it was paramount that there should not be any diminution at present. There was nothing in the bill to inflict hardship upon anyone.

Successive Amendments Mr. W. E. Barnard (Labour —Napier) recalled that the original mortgagors' relief legislation had been passed in April of last year. The first amendment was brought down in November of that year. There was a further amendment in March of the present year, and now they had a third amendment. With each successive amendment the position became more involved. People were entitled to know exactly where they stood. Even members of the legal profession found jt difficult to keep pace with the flood of amendments.

He could not agree with the Minister when lie said the bill inflicted no hardship 011 anyone. Surely the Government realised that continuous - arbitrary interference must inflict hardship on a not inconsiderable number of people. Mr. Barnard suggested that if any pressure. were exerted to alter the law in respect to the personal covenant, the Minister should refer the matter to 1110 Statutes Revision Committee, because perhaps it was only lawyers who appreciated the difficulties involved.

Demanding of Documents

Mr. H, G. Dickie (Government —Patea) agreed with the observations of Mr. Barnard in connection with the personal covenant. A case had come under his notice where a solicitor had a lien over documents and had refused to give them up to a commission. He thought the commission should have power to demand all documents.

The Hon. A. D. McLeod (Government —Wairarapa) said that in any adjustments numerous anomalies were bound to crop up. He realised to the full the Government's difficulty in meeting them. In his opinion, the initial and amending legislation did not go far enough to meet the serious position of the country as a whole. He felt that all of the legislation was only a palliative to deal with a very serious problem. The legislation fell far short of requirements. " The bill is designed to meet cases of very great hardship," said Mr. Cobbe, in reply. Referring to the statement of Mr. McLeod that the legislation fell short of the country's needs, the Minister said that if they went too far it would be an injustice to the mortgagee. They had to endeavour to steer a middle course.

When the chairmen of the Adjustment Commissions had met in conference, it had been impressed upon them that mort gagees had certain rights as well as mortgagors, and that every effort was to be made to hold the balance between both parties. He believed the bill would be very helpful and appreciated throughout the country. The bill was read a second time.

LEAVE FOR MEMBERS

" URGENT PUBLIC BUSINESS "

CAMPAIGNING IN MOTUEKA [BX TELEGRAPH —SPECIAL REPORTER.] WELLINGTON, Thursday "Urgent public business," on account of which members of Parliament are frequently granted leave of absence, may relate to a wide variety of circumstances. However, when that reason was given when leave was applied for on behalf of two Labour members in the House today, there seemed to be no doubt among members as to the real nature of the "urgent public business." Loud laughter greeted the request for three days' leave for Mr. J. A. Lee (Labour —Grey Lynn) on that account, and the general merriment was renewed when a similar application was made on behalf of Mr. W. J. Jordan (Labour — Manukau). Both members have been busily campaigning in the Motueka electorate during the past week or two on behalf of the Labour candidate, Mr. P. C. Webb.

EMERGENCY LAWS

DOUBTFUL POINTS CLEARED

SECOND READING OF BILL

[BY TELEGRAPH—PRESS ASSOCIATION]

WELLINGTON. Thursday

Moving the second reading of the National Expenditure Adjustment Amendment Bill in the House to-day, the Prime Minister, Mr. Forbes, outlined the clauses i : n the bill, stating that they were designed to clear up points raised after the passage of the main Act. There had been some doubt whether loans on life insurance policies came under the category of ordinary mortgage, or whether they should be classed as chattel securities and thus be subject to the minimum interest rate of per cent. The bill clearly placed them under the definition of an ordinary mortgage, subject to the 5 per cent minimum interest rate. ,•/.,» 1 1 Exemption was being lifted from local body ground rents in order to bring them into line with the general policy of reducing fixed charges. There was no reason why local bodies should not be subjected to the same provisions as private institutions and individuals. The bill was read a second time.

MUNICIPAL ASSOCIATION progress of the bill [by telegram—press association] WELLINGTON, Thursday The Municipal Association Bill, establishing the association as a corporate body was read a second time in the House of Representatives this evening.