LARGE MAJORITY

Poverty Bay Herald, Volume LXII, Issue 18661, 22 March 1935, Page 5

LARGE MAJORITY

RURAL RELIEF BILL SECOND READING PASSED MR. COATES' DEFENCE NO HARDSHIP IMPOSED (Parliamentary Reporter.) WELLINGTON - , this day. With, the Hon. W. Downie Stewart (Coal., Dunodin W.) voting with tho Opposition against the Government, the House last night, by 44 votes to 20, accorded a second reading to the .Rural Mortgagors Final Adjustment Bill.

A spirited dofenco of the budgetary system was made in the course of his reply to the debate by the lit. Hon. J. G. Coates, who, however, did not indicate the nature of the provision which is to replace the abandoned 2C per cent equity clause. 'How many members in this House are working on a budgetary position?" asked Mr. Coates, who declared that the same system had been tinmaking of thousands of fanners of New Zealand. Mr. R. Semple (Labor. Wellington E.): It is a form of serfdom. Mr. Coates said the system did no; impose hardship and he could not understand the suggestion that it involved serfdom. All knew how easyit was for money to slip through their fingers. Mr. W. E. Parry (Labor, Auckland C): It is rotten in principle. Mr. Coates: It is a very stupid nation.which does not try to live on a budget', and they are very unwise people who don't try to maintain a ; Mr. Parry: That is a national budget. 'BUDGET MOST HELPFUL Mr. Coates: And an individual budget too. Do you suggest that a wise nation would spend ad lib? Mr. A. ,T. Stallworthy (Ind., Eden):. It depends on the basis of the budget. Mr. W. J. Poison (Coal., Stratford) suggested that the farmer was entitled to somo spending money. Mr. Coates said that one had to try to draft a bill irrespective of the contending parties. He did not think that any reasonable man could object to a budget. In his own'case, one had been kept for years, and it had proved most helpful. Mr. E. J. Howard (Labor, Christchurch S.): That's different from this form "of budgeting. Mr. Poison: Yes, the one in the bill provides a farmer with sustenance only, and nothing in the way of spending money. Mr. Parry: It is a rationing system. Replying to a question by Mr. Polson, Mr. Coates said he was unable to indicate the nature of the provision to be substituted for the abandoned 20 per cent equity clause. It must be taken into account, that unless the man knew he would have some fighting chance of making good at the end of the budgetary period difficulties would arise. . Mr. Poison: What, hope is there for the farmer? ' Mr. Langstone: What is the alternative to a budget? Mr> Cjoates: Making private arrangements or arriving at a decision that the game is not worth while. Mr. Langstone: You might as well give them a prison rig-out. MANY ADJUSTMENTS MADE Mr. Coates added much of the indebtedness on- the land to-day could not be recovered, and it would be unfair if the Bankruptcy Act were allowed to Upply. As a result of the relief legislation already passed, it was estimated that- adjustments had been made between mortgagees and mortgagors in 30,550 cases. It was estimated that in New Zealand £225,000,000 had been, lent on rural and urban, mortgages, and approximately one-quarter was on an amortised basis. There was strong evidence that those eugaged in primary industry were losing heart, and that there was an increasing depreciation of land. Welltrained men could decide what was a fair thing under all "the" circumstances. If outstanding difficulties could root be,settled, then should there be compulsory conciliation? That was about what the bill meant.

Dealing with the suggestion that the Supreme Court should consider recommendations from the adjustment commissions, Mr. Coates said that the matters ealled for concentrated attention rather than an irregular call on members of the Supreme Court Bench. Further, there would be the danger of unfair decisions if the House were to attempt to lay down details in the form of schedules.

FINAL LABOR ATTACK Mr. R. Semple (Lab., Wellington E.) said hVdid not think it would be possible to bring the country back to prosperity until they helped all the people, and "not one section only. All tho measures of recent years had been centred round the farmers, but there were" others in distress besides farmers. He, did not think the present bill would assist anyone. He deprecated the acfion of the Government in taking the pensions of returnel soldiers in payment ol interest on mortgages. Mr. F. Jones (Lab. Dunedin S.) said the bold constructive policy had brought 56 per cent, of the dairy iarmers to the verge of bankruptcy and had antagonised buyers of New Zealand produce. ■ He quoted a number of articles, the prices of which, he declared, had been increased by the increase of the exchange rate and the imposition of Hie sales tax. The present bill, he added, was a continuation of the Government deflationary policy, and was class legislation. While the workers in the cities received no relief, the bondholders' security was made secure. The present bill would increase the costs, and those costs would have to be borne by the farmer as well as by other sections of the community. He expressed regret that no Minister hal indicated to the House the result of the recent caucuses and whether the bill was to be proceeded with. WORK OF COMMISSIONS

Mr. J. A. Nash (Coal., Palmerston) said the main object of the bill was to enable the farmer to a-emain on the land. Referring to the adjustment commissions he said that to February 28 last the applications referred to the commissions numbered 12,147. The estimated number of applications filed was 14,000. The ratio of rural to urban applications was '6O to seven; therefore the rural applications number 12,400. The ratio of applications refused to those filed was one to eight, or 1550. The number of applications in which relief was granted was 10,850, and the ratio of applications filed to those settled privately, that was without recourse to the court, was one to two. It was therefore estimated that the number of cases settled was 21,700, and the total number of cases in which relief was granted, either privately or by recourse to the court, was 32,550. He thought the mortgagors relief commissions had accomplished a great deal in the short time that they had been operating. Mr. Coates said the very last thing for a man brought up in New Zealand or Britain was to interfere in contracts. He had listened to a number of members who said contracts should not be interfered with, but he_ wondered if that was so in time of emergency. He believed that a number of people did not realise the tremendous difficulty that faced the primary industry, on which they depended so much. He thought it was indicated in the bill that the Government's intention was to keep all energetic capable farmers on the land, and he considered the best adjustment could be achieved if it was left fo a body of capable men skilled in all departments. NO SCREW ON MEMBERS The Minister said he had not heard anyone in the House say it was not a problem, and it had beensaid that something might be done. The Government had decided that it was essential, and flie necessary position should be faced up to, and as a result of careful consideration over the. past couple of years, it had not dealt with the over-burden. The Minister indicated that his party were free to vote as they wished. Mr. Barnard: Did the Minister infer that the bill would go to a forced vote of the House. Mr. Coates: If it is suggested that tho screw has been put on any members of the party, I have never heard such a ridiculous suggestion. Every member of the party, if lie had definite opinions, could have exercised them. The second reading was carried by 44 votes to 26. The division list was as follows: Ayes (44): Ansell, Bitchener, Bodkin, Broadfoot, Campbell, Clinkard, Coates, Oobbe, Dickie, Endcan, Field, Forbes, Hamilton, Hargest, Harris, Hawke, Healy, Henare, Holland, Holyoake, Jull, Kyle, Linklater, Lye, McDougall, McSkimming, Maemillan, McLeod, Macpherson, Massey, W. W., Massey, J. N., Murdoch, Nash, J. A., Ngata, Poison, Ransom, Reid, Samuel, Smith, Stuart, Sykes, Te Tomo, Wilkinson, Young. Noes (26): Armstrong, Atmore, Barnard, Carr, Coleman, Fraser, Howard, Jones, Jordan, Langstone, Lee, McKeen, Munro, Nash, W., O'Brien, Parry, Richards, Rushworth, Savage, Schramm, Semple, Stallworthy, Stewart, TirlIcatene, Veitch, Webb.