THE CROWN AS MORTGAGEE

New Zealand Herald, Volume LXX, Issue 21555, 28 July 1933, Page 8

THE CROWN AS MORTGAGEE

The Minister of Lands, in his address before the Counties Conference, defended the Government's refusal to assume the responsibilities of the private mortgagee in respect of rating indebtedness by declaring that if it did so extra taxation would have to be imposed. This presupposes the inability of the State to apply with success any further pressure upon its tenants and mortgagors. Unfortunately, many of them are living oh the barest margin, and cannot pay moro than they are now doing. But it is just as true that some, infected by the spirit of default, are not making a reasonable effort to discharge their' obligations either to the Crown or to the local authorities. Mr. Hansom himself has made this clear. He spoke of the clamour for remissions and reductions of rent or interest and of a tendency to act as if the Crown, under no circumstances, would exercise its powers to recover arrears. He is aware of the extent of the county council problem through the default of Crown tenants, and has been informed of cases where such defaulters have nevertheless been able to add to their holdings. If the present system of administration is to continue, doubtless he is quite right in stating that the Consolidated Fund would have to be strengthened to enable the Crown to assume liability, but must the system be continued? There is a very strong case for a change to control by a board, free from political influence, as was recommended by the National Expenditure Commission. Over £32,000,000 of invested capital is at stake. It represents a huge business that should bo run on business principles. With the best of intentions no Government could escape political pressure in its administration, and this inevitably means an added burden for the taxpayer. A board of practical men, possessing the same kind of powers as the Railways Board, is urgently required. It would not require to be harsh to discipline those Crown tenants who are not "pulling their weight" to the measure of their capacity, either in respect of rent or rates. It would deal with each case on its merits and could eliminate the non-triers much more readily than the State is likely to do. The Government should be glad to be relieved of so embarrassing a responsibility.