ATTACK BY LABOUR

New Zealand Herald, Volume LXXII, Issue 22045, 27 February 1935, Page 13

ATTACK BY LABOUR

GOOD-NATURED CLASH

STATE SECURITY QUESTION

GOVERNMENT'S DETERMINATION [BT TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday A good-natured conflict between the Minister of Finance. Mr. Coates, and the Leader of the Opposition, Mr. M. J. Savage, occurred in the House of Representatives to-day when Mr. Savage launched another attack against the proposed Mortgage Corporation on the grounds that it would not be founded on the whole security of the State, as was the case with the State Advances Department. Mr. Savage said the bill was not even acceptable to those it was designed to assist —the fanners, who were holding meetings all over the country protesting against it. Mr. Coates: Well, what are you complaining about? That suits you fine, r Mr. Savage said members of the Labour Party were prepared to meet the Government any tipie on the question of the Mortgage Corporation Bill if they got the chance. The trouble was that the Minister of Finance was always up in the air. Mr. Coates: But I've always made safe landings. What the People Want

Continuing, Mr. Savage said that Mr. Coates did not even have the support of the Prime Minister, who had on one occasion given expression to an opinion that was in direct opposition to some of the proposals outlined in the hill. Sir. Savage referred to the question whether the bonds to be issued by the corporation should have a State guarantee. "We have a responsibility equal to that of the Government," said Mr. Savage, "and we are going to honour that responsibility. I am going to ask members to vote against the bill, because it means the destruction of the State Advances Office. If the people want that sore of thing, well and good, but I know the people don't want it." Referring to the Minister's safe landings, Mr. J. A. Lee (Labour—Grey Lynn) said that on those occasions Mr. Coates was equipped with a parachute, but what sort of landings were the people making? Mr. Coates: If you get in, do you propose to deport me? Mr. Lee: No. The expense would not be warranted. The Minister has caused grave harm to the people, and I would not mind retiring him at the average New Zealand income, under which conditions he would not be able to do any more harm. Reply by Mr. Coates

"I find it very difficult to follow the Leader of the Opposition," said Mr. Coates. "First of all he says no one ■wants this blessed bill. I suppose if we take what appears in the press so far as trading banks, stock and station agents and law societies are concerned, we find they are all opposed to it." Mr. Savage: Did it ever strike you that a sham fight is being carried on ?

Sir. Coates: I only know that unpleasant language has been used. The press is entitled to its opinion. It may be well informed, but I do not agree with what it anys on this bill and the Government does not agree. Mr. Savage: Nobody agrees with the Government. Mr. Coates: Is the Government to be battered about and dragged up this road and down that alley by every opinion that is expressed in the country? I know that under this bill we are going to get cheaper money for those who desire to take advantage of it. Is it wise for the State to borrow all the money necessary to reorganise our system of finance? I think every member will realise that it would mean piling up the national debt to such extent that we would destroy the very security upon which we are depending. OPPOSITION TO PLAN RESOLUTION AT MATAMATA [fhom oph own* correspondent] MATAMATA, Tuesday

In spite of heavy rain, about 250 farmers from the Matamata, Morrinsville and Hauraki Plains districts attended a meeting of protest against the Mortgage Corporation Bill in the Matamata Town Hall last night. The speakers were Mr. W. J. Poison. M.P., president of the New Zealand Farmers' Union, Mr. H. E. Blyde, president of the North Taranaki Farmers Union, and Mr. H. O. Mellsop. president of the Auckland Farmers' Union. Mr. Poison condemned the bill as it stood, and stated he would vote against it in Committee. He urged that .the shareholder capital provision must be abolished. 'lf this were done; he said, and tha bonds guaranteed by the State money could be secured at 3 per cent, and lent to the farmer at 4i per cent. The following motion was approved unanimously:—" This meeting of farmers is of opinion that as an aid to the dairy farmer this Act is perfectly useless since it will neither lower the rate of interest, reduce the capital liability, nor tend to improve our security of tenure. If, however, the Government is determined to force it upon the community, then we urge that it be amended as follows: —' That all shareholder capital be abolished; that the corporation bonds be State guaranteed to ensure the lowest rate of interest being secured.' "