MORTGAGORS' RELIEF

New Zealand Herald, Volume LXXI, Issue 21763, 31 March 1934, Page 13

MORTGAGORS' RELIEF

CRITICISM OF THE ACT RESTRICTIONS ON CREDIT "It looks to me like special pleading for a Terr bad case," said Mr. A. G. Lunn, president of the Chamber of Commerce, at a meeting on Thursday, when a letter was read from the Hon. J. G. Cobbe, Minister of Justice. The Minister's letter was on the proposed amendments to the Mortgagors and Tenants Belief .Act, 1933, and he said he could not agree that the chamber had proved that section 16 had resulted iu or would occasion curtailment of credit generally. "You state," he said, "that the court with the full facts before it is not likely to make an order that will harass a debtor, but might it not be said with equal force that the court is not likely to decline leave to a creditor to proceed if he is able to establish that the mortgagor is merely endeavouring to evade his obligations as you suggest?" The president said merchants were taking matters into their own hands. They could not afford to extend credit over £2O. Mr. E. A. Brown: I think the reply of the Minister is an excellent reply. I think the Act is a very good one. Mr. G. Jackson said he thought section 16 was going to operate in a direction exactly opposite to that intended. Credit was definitely being restricted because of it. It was no longer safe to give credit. It was decided to send the facts known to the chamber to the Associated Chambers of Commerce, which is in communication with the Minister on the matter.