RELIEF LEGISLATION

New Zealand Herald, Volume LXXI, Issue 21935, 19 October 1934, Page 13

RELIEF LEGISLATION

USEFUL AS EXPEDIENT NOW DELAYING RECOVERY [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday Qualified approval is given by th® Dairy Industry Commission to the .financial relief legislation of the past three years as having had the effect of giving protection and a breathing space to deserving cases, and of maintaining production on a large aggregate area of land that would otherwise have cc-ased to be productive. The report comments that 'jhe legislation was intended only as a temporary measure, that its protracted continuance is fraught with serious possibilities, and then goes'on to say:— "Our view is that an examination of the present position reveals a state ot suspended farm debt and frozen mortgage finance that calls for early and positive action. The inertia of the system is disheartening to mortgagors and « mortgagees alike, and is destructive of confidence. The choice lies between a complete abandonment of the system, which, because of the serious position that would result, cannot be recommended, and a rationalisation of the system, which will enable mortgagor whose position is basically sound to be refinanced on a permanent and inexpensive basis. We recommend the adoption of the latter alternative, and we further recommend that the protection given to mortgagors whose position is basically unsound be withdrawn after the expiry of the existing legislation. The withdrawal of protection in these cases will not necessarily result in the dispossession of the mortgagors, for it is probable that many mortgagees will prefer to compromise with their mortgagors rather than risk making a greater loss through a forced sale. "In this connection, it appears to us that the continuance of the relief legislation tends to prevent the making of permanent settlements, because mortgagees are inclined to regard the legislation as a temporary expedient and prefer to delay action until tiio situation is more clearly defined." . . ' •;