MORTGAGE BILL

Otago Daily Times, Issue 22505, 25 February 1935, Page 4

MORTGAGE BILL

RATING OF CROWN PROPERTIES NEW MORTGAGES TO BE LIABLE (From Oub Parliamentary Reporter; WELLINGTON, February 23. A revision of the clause in the Mortgage Corporation Bill relating to the liability of institutions for rates and taxes will be made by the Government, and an amendment to the existing clause will be introduced when the measure' is under further consideration in committee^ While the nature* of the redrafted clause has not been disclosed, it is stated that the alteration will be, in the direction of meeting to some, extent the complaints made by local bodies that an unfair would be placed on their general ratepayers because of the nonliability of the Crown" for rates and taxes on properties which have reyerted to it. That point was settled in the Inglewood case. Fortified by .that decision, the Government is not expected to be willing "to forego ? the * right there established, but it is probable that the redraft of the clause will modify the existing position to the extent that 'liability for rates will be provided for; as a first charge in' the case of new mortgages arranged by the corporation. ' It has been estimated that about £500.000 would be. required to give effect 'to the plea of the local bodies for the payment of rates on State mortgaged properties. Under the present economic circumstances—even if there, were no other objections—tile Government is not able to provide such a large sum to help local bodies to overcome their difficulties.

The Government has under, consideration the possibility of reducing general taxation, and if it is to do that it must watch its expenditure closely. That point was evidently in the mind of the Minister of Finance, Mr Coates, when he said that the local bodies should be prepared to carry the burden. .. This general aspect of the Bill, loomed large in this week's 'caucus discussions by Government members, and it is as. a response : to the representations there made that the Cabinet has decided to redraft the clause. ■..'•-■ * ' ■ '•'■': ;Included in other amendments to be made will be a provision for the appointment of.associate directors in the provinces as was announced by -Mr-Coates in the House,, and "it is understood that other machinery ■ alterations : are, - proposed. . It can. be definitely asserted, however, that no alteration will be made to the share-capital provision which was the feature of the Bill most : severely criticised in,the House.,,