HOUSE OF REPRESENTATIVES

Otago Daily Times, Issue 21601, 23 March 1932, Page 8

HOUSE OF REPRESENTATIVES

\ • —- i [(Pek United Press Association.) /' WELLINGTON, March 22. I The House of Representatives met at I 2.30 p.m. UNEMPLOYMENT POLICY. Replying to Mr W. E. Parry (Auckland i Central), the Minister in Charge of UnI employment (Mr J. G. Coates) said he hoped to introduce the unemployment I legislation before the House rose for the ' Easter vacation. RECOVERY OF RATES. Replying to Mr J. N. Massey (Frank; ! lin). the Prime Minister (Mr G. W. | Forbes) said it was not intended to intro- ! duce legislation making local body rates ! an absolute first charge on land in priority I to mortgages to the Crown. The effect of i such legislation would be to make the ! Crown liable for the payment of local I body rates in order to protect its securities, and before it could be introduced the whole question of local body taxation would require to be reviewed. The Crown did not make advances for profit, but its activities were in the main intended for settlement purposes and to promote the welfare of the community, and it would not be desirable to restrict these activities by imposing on the Crown a new set of financial liabilities. The interest charged by the State lending departments did not provide any margin out of which the Crown would be abie to meet any additional liability. Private mortgagees were in a different category, inasmuch as the margin of security was generally greater and a higher rate of interest was imposed. INTEREST AND RENTS ADJUSTMENT.

Urgency was accorded the passage of the Mortgagors and Tenants Relief Bill. Mr J. A. Hargest (Invercargill) resumed the debate on the second reading. He expressed admiration for the measure, which he believed would be acclaimed throughout the country as a means of saving the livelihood of many people. It would help to keep the farmers on the land, business people in their shops, and workers in their homes. There was need to protect the mortgagee’s position just as much as that of the mortgagor. Mr R. M'Keen (Wellington South) said #ll that the farmer got under the Bill was the right to go to the court and the court had the right to say what the farmer should get. The farmer needed relief and had been promised it, but apparently this was all the Government was prepared to give. He appealed to the Government to give a greater measure of relief in connection with the operations of the State Advances Department and the Public Trust Office. . Mr H. G. Dickie (Patea) expressed the view that the Bill should be made retroepective, at least to the day of its introduction, as there were many people who were contemplating taking action. He agreed that there should be a scaling down of interest rates. Mr Parry complained that under the Bill it was practically necessary to prove bankruptcy before any relief would be forthcoming. A postponement of payments by the State mortgagors was not enough; there should be power to reduce the payments. He expressed concern that no provision had been made for a person who was renting a house. There should be protection for the tenant as well as for the landlord.

The Minister of Lands (Mr E. A. Ransom) intimated by way of interjection that the legislation to be introduced later would deal with the position of tenants. Mr A. Stuart (Rnngitikei) expressed regret that it had been necessary for' the Government to bring down legislation interfering with private arrangements, but he agreed that desperate diseases required desperate remedies. The Bill would do a great deal of good. He was of opinion that a reduction of interest would meet the position. Mr R. Semple (Wellington East) said he was sorry’Mhat the Bill provided for dealing with house rentals only in cases whore there was a lease or some similar agreement. He believed that the great bulk of the people in the cities had no leases and were in occupation of houses only so long as they could pay rent. The Bill made no provision for these people, and he considered that if there was one section of the community which wag getting “ a tremendous trouncing ” to-day it was that section. Mr A. D. M'Leod (Wairarapa) said that well over 90 per cent of those holding rural lands were farming them more cheaply than any mortgagee could pos-sibly-do. He believed that a personal covenant should be the last of all contracts it might be necessary to break. The early development of the country had taken place almost entirely as the result of personal ■ covenants.