LAND AND HOMES

Otago Daily Times, Issue 22834, 19 March 1936, Page 10

LAND AND HOMES

RESTORATION OF EQUITIES READJUSTMENT OF MORTGAGES GOVERNMENT'S FUTURE PROGRAMME (Per United Press Association) WELLINGTON. March 18. A readjustment of private mortgages as well as State mortgages and the restoration of equities in land and homes is an important part of the Government's future programme. The Prime Minister, Mr M. J. Savage, stated today that the Government intended to set itself to the task of restoring these equities by promoting legislation authorising a readjustment of mortgages on the basis of the average of the prices received for primary produce during the past eight or ten years, and on the average of incomes during that period. The readjustments must be general, he said, and the basis of what a man could pay must be his income. "We say to the dairy farmer," said Mr Savage, "that wc are going to pay him so much for his butter, and we will base that price upon the average worked out over the last eight or ten years. We will go to the mortgagee and the mortgagor and say their mortgage must be treated on the same basis. Our job is to keep the people on the land and in their homes. The basis of the whole scheme is New Zealand's power to produce. As we level up the prices for the dairy farmer so must the wages increase in both country and town. "We expect that when the Arbitration Court starts operating under the amended legislation it will start to base the wages of the men in the towns on the same basis as we propose to fix the prices for the farmers in the country. The wage-earner is entitled to as much consideration in regard to mortgages as the farmer with- his mortgage." Mr Savage said the only basis upon which to review mortgages was on the average of incomes over the. last eight or ten years. The previous Government adopted the opposite policy in dealing with the farmers. It said, "We are going to put you under observation for a period of five years, and then we will have reached a basis upon which to work." That was not the present Government's way. It intended to work on the average prices for the past eight or ten years and thus arrive at a reasonable price for the farmer's products. If that statement were analysed its basis would be found to be sound. " Unless something is done to increase the farmer's money income progressively with the increase in production, then any increase of production under supervision will not assist him at all," added the Prime Minister. "His money income will remain about the same." The farmers' experience for the 10 years ended 1933 proved that statement. If we base our valuation of farm securities upon the average of the value of production over a period of past years, say eight or ten years, we can begin at once to rehabilitate the farmer who is in difficulties."