PASSED BY COUNCIL

Poverty Bay Herald, Volume LXIII, Issue 19133, 30 September 1936, Page 13

PASSED BY COUNCIL

I MORTGAGE RELIEF BILL SOME CRITICAL COMMENT AMENDMENTS REJECTED 1 (Per Press Association.) ! WELLINGTON, last night. In the Legislative Council to-day, the debate was resumed on the Alortgugors and Lessees Rehabilitation Bill. The Hon. V. Ward said he thought the bill *\is a good one, and hoped it would be in the interests of the oouutrv.

The Hon. J. AlcLeod said that, the gambler in land was very often the rarm'or himself. The speaker did not disagree with the objective of the bill, which carried on the principle established in the last two or three years, and legislation was hardly necessary.

The Hon. C. J. Carrington said he opposed the bill. Was nationalisation the objete of the bill? he asked! There should be revaluation of land in New Zealand on a productive value. He thought the bill went too far. The Hon. H. A. Russell said he was of opinion that the plan underlying the bili was State ownership of land, and nationalisation oil industries. The bill would take away the freehold from the individual, and invest the land in .he State. "ONLY ONE MORE STEP"

The Hon. W. Perry said a mortgagee was bound to lose some of his money and the mortgagor was bound to gel some benefit. If primary produce prices rose, the mortgagor mot. the benefit of the increase, but the principal sum advanced by the mortgagee would have been reduced and the amount by which it had been reduced, from the point of the mortgagee, would have gone. There should Ik some provision by which the mortgagee would get the benefit, of any increased values.

The Hon. M. Fagan said the bill was going only one more step in ilic direction that had been followed by governments down the ages, and the legislation would apply to floating charges and debentures that were exempted under the 1933 Act. The Government would consider all cases and make exemptions only where they were justified.

The motion for committal was agreed to on the voices, and in coim mittce the Hon. R. MeCallum moved an amendment to make the bill apply only to mortgages executed before April 17, 1933, the date of the passing oi' previous legislation before the passing of the bill. The 'amendment was defeated by 19 votes to seven. Mr. Perry moved an amendment to the effect that, where a mortgagor applied for a reduction of interest, the rate should not be reduced to less than that charged by the State Advances Corporation.

The amendment was defeated by 17 votes to nine.

The bill was then passed