VIGOROUS ATTACK

New Zealand Herald, Volume LXXIII, Issue 22525, 16 September 1936, Page 15

VIGOROUS ATTACK

RESULTS OF THE BILL FARMER'S LOSS OF EQUITY "WAGE WORKER FOR STATE" ANALYSIS BY MR COATES [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Tuesday A vigorous attack on what lie termed "the Government's triangular plan for farming" was delivered bv the Rt. Hon. J. G. C'oates (Opposition—Kaipara) during the second reading debate on the Mortgagors and Lessees Rehabilitation Bill in the House of Representatives to-night. The one result of the Government's legislation, Mr. Coates said, would be the loss by the farmer of any equity in his land so that he would be reduced to the position of a wage worker for the State.

Mr. Coates said he had listened to two Government speakers, who had put up the worst case he had heard for a long time. It was impossible to reconcile the interests of farmer mortgagors and mortgagees. Mr. J. Thorn (Government — Thames): You had a shot at that yourself. Equity Provision Taken Away "1 am bound to say that this bill is no improvement on past legislation," said Mr. Coates. "In the past there was provision for a 20 per cent equity. That is to be taken away. I would like any member of the Government to show me where a penny piece of equity exists in this bill. The Prime Minister promifcxl to restore equities. Either the Minister of Finance has let him down badly or else he has gone back on the promises which he made to the farming community.

" It is impossible to approach this mortgage bill as an isolated piece of legislation," Mr. Coates continued. "It is part of the triangular plan for farmers. First we had the guaranteed price, which is lower than the ruling market rate; the second leg of the triangle was the statutory minimum wage for farm labourers, which was fixed at a rate below the wage fixed for general labourers, and now wo have the readjustment of mortgages. The mortgagor is to be allowed a reasonable standard of comfort, but at the same time he will be left mortgaged 100 per cent.

Retort to Interjection

Mr. Thorn: He is mortgaged 150 per cent at present. Mr. Coates said it was true that the legislation in many respects was based on the Acts passed by the last Government.

Mr. J. Christie (Government —Waipawa) :• Why complain about it? Mr. Coates: The hon. gentleman will get all the complaints he wants when he goes back to his own constituency. Mortgages could not be adjusted on the basis of the guaranteed price, Mr. Coates continued. The price itself was to vary from year to year. The Minister had referred to community values in land. If those were to be taken away under the bill, the farmer's claims would not go beyond his reasonable standard of comfort. He would be put on to the same basis of wages as his own farm labourers. .

The intentions of the Government were clear. It aimed at securing all equity in land for the State. If the farmer lost his equity and all reasonable chance of an equity, he would be reduced to the standard of a peasant. When the first mortgage legislation was introduced a few years ago, there was a real necessity to improve the hopeless position of the farmer. There were many who were in danger of losing the results not only of their own work, but also of tho work of their forbears. Help By Last Government

Something had to be done, and the last Government, at the risk of unpopularity, set out to help the mortgagor on sound principles, continued Mr. Coates. The Labour Party % had promised more, but it was very questionable whether the present bill gave the mortgagor what he had been led to exl)ect - , < Dealing with the detailed provisions of the bill, Mr. Coates referred to the case of a farmer with £ISOO of mortgage liability. Oil the basis of productive value his farm might be valued at £IOOO and his mortgage automatically reduced to that amount. The terms of the mortgage could be varied by the adjustment commission dealing with the case, or repayment could be ordered. The majority of farmers would still be left mortgaged 100 per cent and in that case it would be impossible for them to refinance. "A Servant of the State" The balance of £SOO after the reduction of the mortgage would become an adjustable debt and might or might not be discharged by the commission. There was nothing in the bill to say that it would automatically disappear and if the farmer thought that his mortgage was to be reduced and the amount of reduction wiped off then he would have another think coming. "The bill before the House does nothing to simplify the position,'- said Mr. Coates. "Indeed, it makes it more complicated and involved. It is all part of an attempt by the Government to take over the land, with the farmer as a servant of the State. The bill certainly does not measure up to the declarations of the Government, and in this respect can only be viewed with disappointment."