MORTGAGE RELIEF

Poverty Bay Herald, Volume LXIII, Issue 19122, 17 September 1936, Page 12

MORTGAGE RELIEF

COMMITTEE DISCUSSION AMEN DM ENTS PROPOSED BILL TO BE R EPRINTED (Ter Press Association.) WELLINGTON, last night. In the House of Representatives- tins afternoon the .Mortgagors and Lessees Rehabilitation Hill was considered 111 luiiunit tee. Tin* lion. A. Hamilton (Nat., Wallace) urged 1 hat existing members of commissions should, where possible, he reappointed, so that, advantage, could be taken of the experience, they had gained .smee their appointment,. Dealing with farm properties was a job that needed experience, and lie thought the Minister should consider appointing former members before appointing new ones. Mr. \V. A. Bodkin (Nat., C. Otago) said it. would he an extreme, disaster it bias were shown in the appointment of members of commissions. The. commissions Would represent either the. strength or the weakness, of the legislation. He said the basic value of a property should be what it' could produce under efficient management. It wits necessary to make a certain amount of adjustment, but lie claimed that this was not as urgent as most, people believed. 'I he mere fact that notwithstanding that there were £125,000,000 worth of rural securities, the total value of mortgages regarding which adjustment was asked was omy L3.700.CCC. did definitely suggest that the matter was not as urgent, as most people were given to believe. RESTRICTION OF SALES Mr. W. J. Poison (Nat., Stratford) said the provision to exempt, certain mortgages should not be left to the ttover-nor-General-in-Council to decide, but it should be a matter for the court. In fixing the productive value of land, no provision was made for profit. .He thought an amount representing a sinking fund should be provided, so that a farmer could look forward to the day when lie, would be able to' pay off bis mortgage, lie asked if a flat mortgage when refinanced at the end of five years became a second mortgage. If that wove done, it might place the fanner in a very difficult- position. fhe Hon. W. Nash said the principle of priority of mortgages was in operation in Britain, where- it had served a useful purpose to many occupiers of land. It was definitely for the. purpose of ensuring tlie maximum production of land. There had to bo some- provision that those who supplied farmers with seed and manures received their money, otherwise the farmer would not- get seed and manure.

Referring to sales of properties, Air. Nash said that power would be taken to ensure that- the farmer, who wasgiven some benefits, by the adjustment-, would not be able to sell his property within the period of the adjustment. He assured .Mr. Hamilton that people who had experience would be appointed to commissions. MORE COMPANY TAXATION Referring to, another argument, Air. Nash said that under another bill to be passed there would ho higher taxation to he paid by companies. He said that at present the load of taxation fell on the ordinary shareholder, and steps would bo taken to bring in the interest paid to, debenture holders and preference shareholders. If preference shareholders fell they were not getting justice they could make, application, to the court. He upheld the provision that large estates could be sub-divided, or a portion sold, if the commission thought it advisable that this should be done. Mr. Bodkin contended that the whole of the adjustable debt, should not be written off, but. that some hope for the future should he held out for the mortgagee as well as for the mortgagor. After all, if a, property wore, mortgaged to the extent, of ICO per cent, the real owe or was (lie mortgagee, not, the mortgagor, and he should receive some consideration. The. IK. Hon. ,1. G. (Mates (Nat., ICaipara) said that although it was not expressed it was evidently intended to give the, farmer an equity in the properly, hut if the fanner missed one payment. as arranged for by the court, lie was gone. He believed that, more farmers would go out under that part of the bill than under the five year budgetary syst ran.

Mr. Nash stated there were a number of amendments to be introduced and lie suggested that (lie bill should be reprinted with the amendments inserted. The short title of the bill was passed, also two machinery clauses, progress was reported, and the House rose.