CHANGES IN BILL

New Zealand Herald, Volume LXXIII, Issue 22435, 3 June 1936, Page 15

CHANGES IN BILL

NOTICE BY MINISTEH MORTGAGES ON LEASEHOLD SPECIAL PROVISION TO BE MADE [BT TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday Amendments to the State Advances Corporation Bill which are to be moved by the Minister of Finance, Hon. W. Nash, during the committee 6tage, were circulated in the form of a supplementary order paper in the House of Representatives to-night. Originally the bill provided for the payment to shareholders according to the amount paid up on their shares on June 14, although in a following sub-section it was stated that the premium would be computed on the amount paid up as 011 May 27, the date on which the bill was introduced. An amendment provides for calculations as to repayment, to bo made on the amount paid up as at May 27.

In connection with the clause in the bill under which a mortgagor may effect a policy of life assurance as additional security it is provided that the corporation may undertake to collect moneys under any such policy on behalf of any other Government department. A new clause makes special provision with respect to mortgages of leasehold interests. Where ;any loan granted by the corporation, whether before or after the commencement of the new legislation, is secured wholly or in part by a mortgage of a leasehold interest in land, the mortgage will include the mortgagor's interest in any lease that may subsequently be granted to him in renewal of the mortgaged lease or in any other way. - The necessity for the consent of the board of management of the corporation to the sale of any dwelling under the Housing Act is stipulated in another new clause. It is stated that no worker's dwelling is to be disposed of by the purchaser in any way except with the consent of the board which, without the approval of the Minister of Finance, will not be given in any case where the purchaser is not qualified to acquire a worker's dwelling under the Housing Act, 1919. Provision is made for the endorsements of certificates of title when sales are made. .

ALLEGED COMMUNISTS GOVERNMENT ATTITUDE INQUIRY BY MR. W. J. POLSON [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON. Tuesday An inquiry whether the Government approved of the action of two Jillcgcd Communists, in connection with the formation of a clerical workers' union was made by Mr. W. J. Poison (Opposition —Stratfoi'd) in the House of liepresentatives to-day. Mr. Poison gave notice to ask the Prime Minister, Mr. Savage, whether he was aware of the activities of two public servants, who were well known to be leading Communists, in addressing the recent meeting called to form the clerical workers' union. If so, would he indicate whether their action had the approval of the Government? If the Government did not approve, Mr. Poison asked what action the Prime Minister intended to take.

MORTGAGOR'S INSURANCE SECURITY FOR WIDOW DISCUSSION ABOUT COST [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON. Tuesday The clause in the State Advances Corporation Bill under which a mortgagor may effect a policy of life assurance as additional security was the subject of discussion during the debate on the bill in the House of Representatives to-night. In reply to Opposition remarks on the matter, the Minister of Finance. Hon. W. Nash, said the proposal was designed to insure that in the event of the death of a mortgagor who had borrowed money from the corporation his house would become the unencumbered property of the widow. Sir Alfred Ransom (Opposition, Pahiatua): How much a week will that cost ?

The Minister: It depends on the age of the borrower. If the mortgagor was 30 and the loan was £IOOO the payment to cover the whole security on a 30 year basis would be £3 7s 8d a year or Is 5d a week.

Mr. W. A. Bodkin (Opposition— Central Otago): Under what table would you get a policy of £IOOO for £3 a year?

"I am saying that the net cost to a mortgagor to cover a house of £IOOO if lie borrows the money at the age of 30 will work out at £3 7s 8d per annum." Mr. Nash said. "The principles by which the proposals will be worked out would take too long to explain now. The rates will grow as the age increases."

PENSIONS LEGISLATION

ASSURANCE BY MINISTER ACTION AFTER THE RECESS [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday The certainty of the introduction of pensions legislation in the House of Representatives after the approaching mid-winter recess was stressed in an interview to-night by the- Minister of Pensions, Hon. W. E. Parry. " The bill which the Government will bring down cannot be put into definite shape until all the reports on the financial position of the country are completed," Mr. Parry said. " The special legislation for which Parliament wan called together some three months earlier than usual will have been mostly dealt with before the House adjourns. After the recess there will be ainplo opportunity for considering pensions legislation." . Asked whether the pensions bill would be framed to provide only for the restoration of cuts made some time ago, the Minister said the bill would go further than that and would probably cover the civil pensions now in operation.

An indication that a Pensions Bill was being framed and would be introduced this session was given by Mr. Parry in an interview toward the end of 'April. He then stated that it was the aim of the Government to make the pensions system as nearly uniform as possible, and it was probable that the programme of pensions legislation would extend over three years. The restoration of the cut in old age pensions, and an increase of 7J per cent in pensions for widows and miners, and for dependants of soldiers whose pensions were reduced, was made from October 1 last yeftr. The principal pension which has not yet becn_ restored is tho soldiers' economic pension.